It is no secret that sports betting has gained extraordinary popularity in Kenya and other African nations, making the gambling sector a worthwhile investment within the continent’s labor market.
The surge in betting sites is due to growing internet penetration across the continent, as well as the advent of mobile-based money services.
Nigeria, South Africa, and Kenya have recently seen an increase in the number of betting firms. Betting generates an estimated $30 million in Nigeria alone, and over $25 million in Kenya.
Sport betting is increasingly dominating Africa. Currently, the tendency is to enjoy sports by earning money from them, or losing money from them. The gambling industry in Kenya, South Africa, and Nigeria was predicted to be worth $37 billion by the end of 2018, according to a Price Waterhouse Coopers research on the 2014 Gambling Expectation.
Despite its many shortcomings, such as having 24 percent of its people living in abject poverty, Africa has become one of the world’s most attractive and intriguing gambling markets, particularly when it comes to sports betting. Online betting platforms are provided by betting businesses. So long as a punter has access to the internet, they may simply get everyday sports information from the websites. Then they publish money to bet on their favorite sports. This also aids the organization in determining the appropriate athletic activity to depend on for income generating.
Those in favor of sports betting allege it exploits thousands of African youth. In addition to providing simple and fast money for many individuals, particularly those who struggle to make ends meet, the industry also helps to build and strengthen the continent’s economy. While some of these assertions may be true, some opposed to the theory say it is not.
It is also evident that many Kenyans and other Africans are wagering heavily on these platforms. For example, if one takes public transportation in Nairobi, Kenya, it is likely that the young person next to you is busy putting a bet on one of the websites. It’s a trend that’s unlikely to cease soon. It is also the key reason why most betting firms worldwide are converging and focusing on Africa.
First and foremost, Africa has the most individuals under the age of 35. For example, there are almost 200 million people aged 15 to 24. In Kenya, people under 35 years old make up 80% of the population. In the same nation, 800,000 young individuals enter the employment market, all eager to find work. However, compared to the national average of 10%, this age group’s unemployment rate is 35%. Many betting organizations target these folks since their sites offer them countless options to make fast money.
Not to mention the massive football fan base in Africa, which includes the English, Spanish, German, Italian and French leagues. Because of this, betting businesses see several potential to provide betting platforms for Africans, who would wager on any of the games in these leagues.
By 2050, Africa’s population is predicted to double, resulting in the world’s highest population of persons under 35. Most of them will still be underemployed or jobless at that time, and may resort to simpler ways of earning money. In this circumstance, individuals may resort to sports betting, where they may quickly earn a lot of money by risking only $1.
Addiction risk high
Cigarettes and alcohol are everyday consumables with substantial sales. They all have one thing in common: they are all addicting. The most appealing aspect of sports betting is its high proposition value, where one may gamble little and gain a lot. It is not surprising that many Africans, despite their poverty, are addicted to it due to its value proposition and potential exponential advantages. It is so addicting that when they don’t have enough money to stake, they borrow.
Lax sports betting legislation
Online betting rules in the US and most European nations are so severe that betting organizations are always under pressure. As a result, most of them go to Africa, where many nations have loose legislation.
Except for South Africa and maybe Kenya in recent years, betting rules in many African nations are less rigorous than in the US and Europe. This regulatory environment is damaging to clients, but it also attracts numerous local and multinational enterprises to enter the African market. However, several Muslim nations, such the Gambia in Africa, have outlawed or severely restricted gambling, either eliminating it or reducing it to a minimum.
Also, internet penetration is a role, since many sections of the continent are progressively receiving internet connectivity. As mobile phone penetration increases, several betting businesses are working with mobile phone providers to have their products connected primarily with mobile money services, such as Airtel Money, M-Pesa, and Orange Money. The most intriguing aspect is that one may bet without internet by utilizing USSD codes or SMS, making it simpler to pay and play.
Business Models for Sports Betting
Sports betting is based on probability and odds. Most bets are made based on popular opinion, gut intuition, research, or pure chance. Every bet has two types of people: winners and losers. Handling losers is simple: give them nothing. However, managing the winners requires the firm to generate a lot of money from the losers in order to pay the winners and still make a profit. Using a combination of statistics and strategy, they come up with odds that assure there is enough money from losers to create profits and pay the winners, which is extremely intriguing.
Betting can make or ruin a person. That’s why every gamer should be wary of it. If you’re lucky, you’ll be wealthy. In fact, a single button press might deplete your riches. You might opt to place prudent bets and follow safe betting procedures.