SBC News Voice of the Sports Betting Industry
The SBC Summit in Lisbon will place a spotlight on leadership’s view of the evolving dynamics and makeup of African gambling markets.
William Scott, Chairman of Golden Matrix Group (GMGI), believes that there is no doubt that African markets will grow in significance for Western operators. As such, Western stakeholders must respect the regulatory frameworks, which are at different stages of maturity across the 54 unique countries.
________________
SBC: Hi William, thanks for this interview ahead of the SBC Summit. As an industry executive, why have you chosen to focus on the dynamics and changes in the African market?
William Scott : Africa has just over 18% of the world’s population yet it only accounts for just over 1% of the worldwide gambling market. However the market is growing significantly (from a low base) due increased use of smartphones and internet penetration assisted by innovative mobile banking solutions.
It has its challenges but it also has the new frontier feel to the market. Meridianbet, a part of the GMGI Group, has successful operations in a number of countries in Africa.
SBC: However, is sustainability achievable as a discipline when a number of African markets are highly exposed to illegal operators? What can be done to improve the gambling environment for all stakeholders?
WS: You have to remember that Africa has over 54 unique countries. Each with a different regulatory framework at different degrees of maturity. Meridianbet has found that close collaboration with regulators has proven crucial in limiting the impact of illegal operators.
SBC: What is your observation of recent African market launches by Western/European operators… Can their capabilities and competencies be transferred to developing African markets?
WS: More and more western/european operators are launching in Africa. Throughout on the ground experience we have learned that operators need to adapt their operating model for not only Africa, but the individual countries in Africa. They can leverage the international experience and technology but will still need a local presence to ensure that they can meet the uniqueness of each market.
SBC: On the ground, can you detail the new trends and technology adoption among African consumers, and their engagement with sports and gambling? What is fundamentally changing on the ground?
WS: Smartphones and mobile banking are having a significant impact on gambling in Africa. Smartphones now dominate the market in Africa allowing consumers access to sports and gambling (and other services). It is estimated that 88% (per GSMA) of the market in sub-saharan Africa will be Smartphones by 2030.
The development (and more importantly the adoption) of mobile banking has meant that internet gambling has really taken off. Depending on the market, internet gambling has grown from close to zero to over 50%. This trend will continue over the coming years. That said, retail will still have an important role to play in the over channel mix.
SBC: What role do social responsibility and ESG play in the development of African gambling across all disciplines?
WS: Social responsibility and ESG is becoming more important in Africa. The requirements differ significantly from almost nothing to significant depending on the jurisdiction. That said, both operators and suppliers should look to address social responsibility and ESG prior to it becoming mandated. This is what it is to be a good corporate citizen.
SBC: Beyond 2024 and 2025, how do you see African markets developing, whether regulated or not? What are the continent’s hot prospects?
WS: Africa will become an increasingly more important market in the world of gambling. However, it will never be as large as say Europe or North America, but it will still be very interesting.
South Africa will continue to be a market to watch as the online casino market (and regulation) continues to develop. Other markets in East and West Africa will develop with new regulations that make it easier and more defined on licensing for operations.
