POP! Off goes the pistol and the race is on! And not just any race, but a race for a good position on Africa’s online gambling circuit. The contenders are many, and since COVID-19, the stakes are higher than ever. But there are many obstacles in the way. Obstacles that both African and offshore online casino operators will have to overcome if they ever hope to succeed.
What are they, and how can they be overcome? And what does all this mean for Africa’s gambling scene? With the help of the online casino experts at Casino Guru, we’ll answer all those questions and more!
Problem: Africa is a developing continent
Despite all the progress we’ve made in recent years, there is simply no denying that Africa is still a developing continent. In its more remote parts, people continue to struggle with getting access to clean water, electricity, and mobile and internet coverage. Large chunks of Africa also lack some of the more basic services available elsewhere, like traditional commercial banks.
As a consequence, there are significant remote populations, which online operators have no way of addressing. And so, until technological development reaches these communities, operators will have to settle for the less remote markets.
Solution: Selective market penetration
Online casino operators can avoid the issue to a certain degree by carefully choosing the markets they intend to target. Though countries like South Africa, Nigeria, and Kenya will certainly be more competitive, at least they’ll know what they are getting themselves into.
Problem: Uncommon banking model
Instead of the traditional commercial banks that the 1st World countries take for granted, African banking is largely mobile-based. Most Africans don’t even have a bank account and entirely rely on online or SMS payments. This could be a problem for foreign online operators who are unused to serving Africa’s unique market.
To make matters more troublesome, countries like Nigeria set out on a mission to limit money-laundering operations, to which online gambling has an unfortunate connection. As such, online gambling operators will have to do their homework and tread very carefully when it comes to Africa’s regulatory compliance.
Solution: Blockchain-based payments
Explanation: For those unaware, blockchain is the name for any technology running on a decentralized network. In practice, that means they run on the devices of their users, instead of being based in any single part of the world. Blockchains offer many advantages, including considerable speed, good encryption, and high privacy standards. They are most famous because of their connection to cryptocurrencies, like Bitcoin and Ethereum. However, blockchain has many more use-cases than that.
Africa hasn’t had the kind of large-scale crypto and blockchain development that North America, Europe, or Asia have had. Nonetheless, the technology is quite popular in Africa. Nigeria, South Africa, Kenya, and Ghana have all put considerable resources into blockchain and its unique use-cases.
Multiple tech startups and businesses set their sights on improving the local payment systems with their blockchain solutions. Through the use of mobile e-wallets, they hope to simplify cross-country payments while keeping the payment process relatively similar to its widely used mobile banking counterpart. These blockchain-fueled transactions are safer, faster, and cheaper, which makes them ideal candidates for online casino deposits and withdrawals.
Problem: Political and regulatory instability
Another obstacle casino operators have to overcome is Africa’s political instability. According to the World Bank, out of all 53 countries, only 9 African countries have a positive political stability index. In certain areas, policies change just as quickly and often as entire governments do. This creates an uncertain regulatory market, where it can be hard to plan ahead and stay compliant with local regulation.
Solution: Local cooperation
As we said, operators need to think carefully, before choosing a country to target. But creating a base of operations in the selected country and working with local talent can also be greatly beneficial. Who else knows the local gambling scene better than the locals themselves? Furthermore, such activities are very helpful to the country’s population, as they provide employment and give back to the community.
And that’s it. Those are 3 of the biggest problems off-shore casinos have to face if they want to gain a foothold in Africa. But with our recommendations in mind, we firmly believe that you AfriCAN do it.Fastest Paying Betting Site in Nigeria: Grab your 140% First Time Deposit Bonus Now — www.Sportybet.Com Copyright © 2020 Completesports.com All rights reserved. The information contained in Completesports.com may not be published, broadcast, rewritten, or redistributed without the prior written authority of Completesports.com.