Going by the latest development in the igaming industry in Nigeria, the National Lottery Regulatory commission is set to begin the issuance of offshore licenses for bookmakers.
The offshore permit is targeted at betting companies without a physical presence or structure in the country, but actively looking to offer online betting services to Nigerians.
Up until now, betting sites like Bet365 have been active within the Nigerian space without a local license. And there has been long deep seated resentment from some quarters including local bookies.
Now, the National Lottery Regulatory Commission (NLRC) is taking steps to fix the loophole while also addressing the concerns of the domestic bookmakers.
Going by this development, Betting companies with licenses from other countries or jurisdictions will be eligible for a remote operator license.
The license will come at a cost of $100,000, with a further $50,000 annually throughout the validity period of the license.
Holders of this type of license will be able to offer various online betting services like Sports betting, Casino, Poker and slot to Nigerians.
How will the offshore license impact the industry?
Not much is expected to change in the industry with the introduction of this license.
However, Analysts are of the opinion that there will be increased competition in the industry.
Given the readily available market, bookmakers hitherto not in Nigeria are expected to fall over themselves for the new license.
With the potential influx of new betting sites into the Nigerian market, Nigeria’s reputation as one of the fastest growing igaming destinations will be further enhanced.
In terms of tangible benefits to the country, the new initiative is expected to increase government revenue.
Already,a United Kingdom based Fintech company E-Technology Global Limited will aid the FIRS in the collection of taxes from the operators.
What’s in it for the Players?
While it is commendable that the NLRC are looking to widen the market by providing a window to allow more bookmakers into the market, the interest of the Nigerian players has to be carefully considered.
This move by the sports betting regulator agency will make the igaming industry even more competitive and vibrant but the million dollar question remains what is in it for the average Nigerian punter?
The new entrant will most likely offer freebies in the form of bonuses and other offers, but that will not be a novel idea in any way as there are scores of new player offers already.
As it stands, there is a long list of welcome bonus offers available to Nigerian players. But the fact of the matter is that, betting enthusiasts in the country deserve more than just offers with cutthroat conditions.
Conclusion
Without a shadow of doubt, the NLRC is headed in the right direction with its latest initiative.
The move to issue offshore licenses is a welcome development and it will go a long way to foster a healthy competition between bookmakers.
More so, from the product angle there will be various types of betting features introduced into the market to improve the overall betting experience of players.
Additionally, the drive of the Federal government to increase the revenue base of the country will receive a huge boost.