There’s no question about it. The global gambling market is huge, and it’s showing no signs that its growth is due to slow down. If current trends continue, by 2022 it is set to be worth around $565 billion with increasing amounts of revenue coming from online gambling in its many forms.
It also reaches into many other sectors, being a major driver of tourism to places around the world ranging from Las Vegas and Atlantic City in the US to Macau and Singapore in the Far East. But it’s also big news in Africa with countries like South Africa, Kenya and, naturally, Nigeria embracing it wholeheartedly.
The law as it stands
It’s not always been the case. For many years in Nigeria gambling was very much disapproved of, with the church being an especially strong critic of the activity which it considered to be antisocial. However, a more liberal approach emerged in the 1990s with the passing of Chapter 22 of the Criminal Code Act.
This legislation was introduced to permit certain forms of gambling, namely lotteries, sports betting and land-based casinos. One oversight was that it made no provision for online casinos or the playing of games. Even when a later piece of legislation, the National Lottery Act of 2005, was introduced, there was still no mention of online casinos.
While laws are in place, for a long time the regulation of the gambling industry has not been particularly closely vetted, but this is starting to change. On both a local and national level, the granting of licenses to operators is being far more tightly controlled. Those who do not comply with the rules have also started to find that their licenses have been withdrawn, effectively preventing them from operating.
The growth of sports betting
Football is by far the most popular sport and game to bet on in Nigeria
As a country that is very keen on sports in general, particularly football, it comes as no surprise that this is the most popular form of betting of all. It has been estimated that from a population of around 185 million people, 60 million people aged 18 – 40 frequently indulge in this activity. Nor is it just national football that they bet on.
The global nature of the sport means that gambling takes place on matches from all the major leagues in the world with the typical gambler spending around ₦3,000 a day in the form of bets.
Most betting is done in the shops that are widespread in the country but rapidly gaining on this method is the online alternative. With the increasing penetration of smartphones, which has now reached around 50% of the population, this is a trend that is set to grow.
Online gambling
The lack of regulations when it comes to online gambling makes it difficult for the country to be able to track and benefit from.
As already mentioned, online gambling is neither permitted nor forbidden in Nigeria. This is because the law has yet to catch up with the global phenomenon that is due to be worth a projected $100 billion a year by 2022. Because it is unregulated, it is all but impossible to estimate how many Nigerians indulge in online gambling, or how much they spend.
What is certain is that most of the major operators in the sector do have a presence in the country and the increasing penetration of internet connectivity is ensuring a steady flow of new players coming online.
One of the original purposes of allowing gambling in Nigeria was to raise tax revenue for the government, which it has done very successfully. But this could generate so much more if it also included online casinos too. So some are predicting that, with a faltering economy that shows few signs of recovery there could be moves to legalize and regulate it soon.
A country they could look towards for inspiration is the UK, where online casinos are hugely popular, regulated and contribute a lot to the economy. One such operator is 888 Casino (established in 1997), it is considered to be the UK’s top online casino, estimated to serve millions of players every year.
The love of lotteries
Lotteries are another very popular form of gambling in the country, as well as being the most closely regulated. The body in charge is called the National Lottery Regulatory Commission who oversee and license all operators.
There are a number of these including ones run by Gab Lotto, Anambra State Gaming Company and Superior Games Ltd. Many Nigerians also choose to play other lotteries from around the world which boast even higher jackpots, for example the American Mega Millions game which, back in June, offered a potential top prize of ₦159 billion.
Nights at the casino
In the 1990 legislation, it gave provision for a number of land-based casinos to be licensed. To date, there are relatively few of these in the country, with none outside of Lagos and Abuja.
Generally, these are part of large international hotels from chains like Hilton and Sheraton. The largest of these can be found in Lagos at the the Federal Palace Hotel and Casino in the city’s Victoria Island district. Boasting well over 100 slots machines and ten table games including poker, roulette and blackjack it may not be able to compete with the glamour and size of a Las Vegas casino, but it is certainly very popular. In Abuja, the Transcorp Hilton boasts over 40 slots machines and nine table games making it the largest casino in the city.
Who’s playing?
Young Nigerians living in and around busy cities tend to be most involved with gambling for geographical reasons.
Nigeria has a large, young population and it is predominantly the 24-40-year-old age group who participate in betting, and especially sports betting. It’s allowed at any age from 18 upwards and it tends to be people from urban, rather than rural areas who take part. This has as much to do with geographical proximity to betting outlets as it does to having a real interest in the activity, although increasing internet access could see this change.
There is also a distinct trend towards more affluent members of the middle class starting to indulge in what was traditionally seen as a more working-class activity.
Summary
Looking ahead, the predictions are that interest in gambling in Nigeria will continue to grow. This will be driven by greater accessibility and, unfortunately, by a faltering economy. If online gambling does become more regulated and accepted, this is also certain to have a dramatic effect too.