Nigeria is an African country reputable for having almost anything in abundance. From its large size to being populous, Nigeria also has plenty of natural resources. It is among the chief producers of gold, oil and diamond in the world. The flourishing country is the home to Lagos, which happens to be its capital city and the largest in the continent.
Interestingly, the country also shines when it comes to sports. The success could probably be due to its evolving middle class and robust administration. However, the outbreak of Covid-19 has not spared the gambling industry not only in Nigeria but also in other countries in the world. Bettors stake on both local and international leagues. The suspension of the sports has seen a massive shrink in betting activities.
Overview of the betting industry in Nigeria
Soccer happens to the most popular sport in the country. The national team has been on the international competitions several times. Furthermore, it was about to qualify for the knock-out stage during the 2018 World Cup.
In short, football dominates the sporting scene in the country. Similarly, soccer is also popular among bettors. And due to that fact, betting sites in the country have been full of action as the gambling industry continues to grow.
The high population of punters and favourable legislation in the country has seen more and more bookmakers seek to offer their services in the country. As a result, competition is high among gambling sites in the country. Operators are trying their best to remain outstanding. Other than soccer, bookies also offer other sports such as basketball and tennis.
Market’s shift towards online
The Nigerian betting market has seen an increase in the use of smartphones. Besides, there has been the launch of the 4G network across the country. However, even with the shift of the market to the online space, the number of visitors to betting sites appears to be very low. In the recent past, popular iGaming operators barely received more than 20% increase in the number of online guests. Besides, it did not convert to an equivalent rise in revenues since only a small proportion of them placed a stake.
Betting preferences
Fixed-odds betting is prevalent in the African continent and is the major generator of revenue. However, most of the income comes from retail despite the advanced accessibility to the internet and increased possession of ownership.
Access to foreign betting sites
Nigerian punters can access betting services from international sportsbooks. LSLB has a list of 20 prohibited betting companies, but the best sites in the country are not part of them. Moreover, bettors can access some trustworthy European-licensed bookmakers. Nigerian bettors do not have to use VPN software to access the bookies as they usually come without DNS or payment blocks.
Major disruptions due to Covid-19 lockdown
Before the outbreak, the sports betting industry in the country was not just about punters spending their cash on stakes. Many Nigerians have earned substantial amounts of money through the gambling industry. A notable successful bettor is Arinze Ezeanyanwu who was a truck pusher and went home with 36 million Naira in 2017.
- Massive financial losses
Bookmakers and operators testify that revenues have gone down during the pandemic. Besides, punters have experienced a loss of earnings due to imposed incomes. Before the pandemic, sportsbooks could walk away with a profit margin of around 20%.
Take, for instance, a report on Gambling in Africa released by KPMG in 2016. It revealed that Nairabet had a monthly turnover of 3-5 million dollars (read the in-depth review of Nairabet mobile lite version). Besides, the profit margin was in the range of 20-30%. Bet9ja, another popular sportsbook in the country, had an average turnover of ten dollars per month according to the same report.
The sports betting industry in Nigeria had an approximate value of two billion dollars before the pandemic. Nigerian players could spend around $5,457 on wagers in a single day. However, several months after the virus began to spread, bookies would be considered lucky if they could earn anything.
Betting operators in the country usually see a rise in their revenues during European leagues. The pandemic kicked in at a time that some of them including the English Premier League were at the peak. The cancellations of the sporting events were enough to plunge the betting industry into complete turmoil. Some of the punters had lost their other sources of income.
Other than the two companies, Nigeria is home to other bookmakers such as Betfair, GoldenBet, Betway, Bet365, SureBet, Betwinner, BetKing, MerryBet, 888sport, 1XBet, among others. Each of the sportsbooks has been in an unstable state due to Covid-19. Some of the betting shops have had to shut doors since the begin of the lockdowns.
- Unpaid leave for employees
Akin Alabi is a member of the House of Representatives. He also adds up as the founder of one of the top sportsbooks in the country, Nairabet. In March 2020, he tweeted about the situation by giving a quick analysis. He indicated how the absence of sporting events strangled the sector on its neck through reduced deposits. Moreover, the forecasted that some of the operators would end up sending their employees to unpaid leave. Akin acknowledged that virtual sports were a slight relief at the moment. The problem is that they are not well established in most African countries, including Nigeria.
There has been a lot of struggle in Nigeria to move the accomplishments of retail-based virtual to the online scene. The case is different in Europe. For instance, they are what has been sustaining most of the operators from massive losses. In Europe, betting on virtual sports has been an excellent substitution for real sports.
Conclusion
Covid 19 pandemic came with devastating effects to every country across the world. The lockdowns disrupted the flow of activities, including sporting events. Therefore, since the betting industry relies on sports, it was not left behind. The reduced revenue led to forced unpaid leave to the staff as operators could not sustain them. However, the resumption of sports across the world marks a new beginning. According to predictions, the betting industry in Nigeria will be back to where it was. However, it might take some time.
