Nigeria’s betting market is rapidly maturing, offering huge opportunity for operators willing to commit long term, Logifuture CMO Ben Cove believes. But it’s not an easy region to crack, and sports betting growth may have peaked, he warns.
Nigeria is one of Africa’s most promising markets, thanks to increasing mobile penetration, a young population and a deep-rooted passion for sports. Logifuture powers leading operator Bet9ja in Nigeria.
Cove tells iGB there has been a “significant influx” of new operators in Nigeria due to its promising reputation. But he warns the market is becoming more saturated and it is difficult for new entrants to make their mark in the country and challenge established brands.
“The reality is, there’s still a small handful of operators that possess the lion’s share of the market, and it’s not an easy market for somebody just to launch into and generate market share,” Cove says.
“We’ve had even quite well reputed international operators dip their toe into Nigeria, I guess from their perspective on the [idea] that you might be able to dip your toe and make some quick money.
“But it’s not the sort of market where you can get away with that. It takes real local expertise, knowledge and focus in order to be relevant, and also it has to be a long-term play. It’s not the sort of market that you can just jump into and seize market share. It’s not going to be that easy.”
Battle shifting to retention in Nigeria
As the market matures in Nigeria, the focus for established brands such as Bet9ja has turned to customer retention, especially with the increasing likelihood of players betting across multiple operators.
“We’re very fortunate that we’ve got a brand which local consumers relate to and is entrenched within the culture and the national identity,” Cove notes. “So for us, the focus is on retaining and maintaining our market share as the market matures.
“The reality is, it’s moving towards that maturation level whereby the average consumer will have more than one betting account, particularly online. There’s probably a bit more loyalty in the retail space, where we’re also very dominant. But online, I would say it’s starting to become a multi-account type market.
“For us, the game becomes as much about engaging and retaining our existing customers as it does about acquiring new customers.”
Has Nigeria betting growth peaked?
According to Cove, sports betting is still the dominant vertical in Nigeria, leading in volume and revenue. But he believes its most explosive growth phase may already have passed.
Cove suggests online casino will be the next growth area, adding: “[Sports betting] will continue to grow, but it will never grow again at the accelerated rate that it did the last 10 years.
“The next steep growth trajectory will be in online casinos. Over the next five years, certainly, casino will grow at a more accelerated rate than sports.
“Whether it will ever catch sports up as a share of wallet in the same way maybe you’ll see in Western markets, where maybe some brands would be running sportsbook and casino 50/50, I’m not sure. I’m not sure that the cultural index is quite there, but you never know. It’s certainly growing.”
Bet9ja has sought to use virtual games to bridge the gap between sports and gaming, tapping into the Nigerian population’s love of football.
“We’re creating simulated experiences with football betting,” Cove added. “For example, it’s Manchester United v Chelsea tonight, and we’re going to place a bet, and the game is going to start at eight o’clock, but then you’re twiddling your thumbs for the next six hours waiting for the game.
“We’ve created this simulator product whereby you can place your real bet, but you can also simulate the bet to see [your outcome] based on the data feeds coming in. We’re seeing as much activity on that as we are on the sportsbook,” Cove concludes.
Nigeria is awaiting new legislation to support the November 2024 Supreme Court decision to end the Lottery Act, which saw gambling regulated via a centralised federal framework.
Stakeholders, as well as the country’s president, have since lobbied against a new Central Gaming Bill which mirrored the previous Lotteries Act in many ways.
During a speech in December, President Bola Ahmed Tinubu said, “What I want you to forget is a centralised lotto,” advising those present to “go and read the constitution again”.
“That remains a residual matter where my exclusive legislative capacity as the president starts and ends – such residual matters belong exclusively to the state. Don’t tread near it. There’s no need for us to argue.”
Original article: https://igamingbusiness.com/strategy/nigeria-betting-market-long-term-strategy-bet9ja/
