Africa is a continent that has presented itself as a rather lucrative market for a number of leading iGaming operators recently, as the region has a rich affinity with gambling activities.
Although the area appears to have a great enthusiasm for sports betting overall, that does not appear to have put off the likes of Yggdrasil and Pragmatic Play, as both of these massive iGaming firms have decided to launch partnerships as they look to tap into a potentially lucrative market.
South Africa has proven to be a popular choice for both developers, as each of them has decided to create a partnership with Intelligent Gaming recently, in what are milestone moves and will provide the country’s people with an opportunity to play some of the very biggest games around. Intelligent Gaming is a leading aggregator of content in the South African gaming market and supplies digital content to a range of operators, all of which will now have access to Yggdrasil’s and Pragmatic Play’s games.
South Africa expansion is hardly a surprise
Some would suggest that Yggdrasil and Pragmatic Play’s decision to expand and exploit the market in South Africa is a decision that is hardly surprising and one that was always likely to take place. This is because the country has the largest gambling market in the continent and predictions have estimated that it could have a gross gaming revenue that could pass the $2.3 billion mark by 2023. The nation is also one of the best in the continent in regards to the GDP, with it being able to boast the third-highest.
Sports betting is one of the country’s biggest and most popular pastimes, with it accounting for around 24% of the revenue in the industry and it is expected to continue to increase as estimates have it doubling in size within the next five years. However, there is a concern regarding the laws around online casinos within the country.
However, thanks to the entering of Yggdrasil and Pragmatic Play on the market, many South Africans who wish to enjoy traditional gambling and live casino games now can turn to a bitcoin live casino in order to enjoy slots and classic table games including roulette and blackjack.
Why has Africa been targeted?
There is no doubt that Africa provides iGaming businesses with a plethora of business opportunities that would seem almost too good to give up and not to try and make the most of. One of the biggest reasons the continent is being targeted is because of its economic resilience, as the region appears to be resuming its march towards economic relevance in 2021 as its average expected GDP growth is above 3%.
This could be down to the fact that there is a rising disposable income for many of the African countries below the Sahara, whilst the rapid development of communication infrastructure within the continent will have played a significant role, as well. Broadband mobile internet connectivity has become increasingly available to Africans, whilst the cost of connecting has become cheaper than before, with residents of the continent accounting for 11.5% of all internet users.
iGaming companies such as Yggdrasil and Pragmatic Play are looking to cash in on the fact that the number of users who are covered by 3G and 4G networks has doubled over the last five years whilst the cost of data and smartphone devices have been significantly reduced, as it provides them with an opportunity to be able to get their products out to a new audience.