The Nigerian Gambling Sector Shows Record Growth

Nigeria is a country in a period of huge growth. With a young, connected population, its gambling industry is thriving.

The online gambling industry in Nigeria is set for record profits and is expected to make unprecedented growth. As more platforms like Betway Nigeria come to the country, offering transparent, fair gaming along with a huge selection of titles, the industry is in its boom period. This is enhanced by the uptake of mobile gaming. Around 90% of internet users in the country now access the web through a mobile device. Its existing industry has recently seen a 92.8% rate of adoption for online betting and casino games, meaning the market and the infrastructure are now in place and improving rapidly.  

Movement Despite Advertising Restrictions 

Due to this, the industry is set to record around $3.63 billion in revenue by the end of the year. In a country that has over 227 million citizens, around 60 million of them make some form of bet each day. Further figures show that just over half of the population makes some kind of sports bet in a year. Mainly, this is on football, particularly the EPL and international fixtures. Nigerian Leagues also get their fair share of betting action on platforms like Betway Nigeria, which have comprehensive domestic and foreign markets.  

This growth has not been without barriers, however, one of which has been restrictions on advertising. This January, the search engine Google announced that Nigeria would come under its country-specific policies. This prohibited the advertising of gambling-related products on its search engine.  

Quite sweeping in its scope, it covered everything from educational materials to vouchers and coupon codes as well as tips and odds. Not only will this be a burden to the industry, but it will also cost Google themselves. Pay-per-click advertising is one of its main sources of income, and with a growing industry looking to expand its market cap, it is something Google may very well consider changing in the future.  

Part of this may be down to how Nigeria’s gambling laws have been somewhat grey and convoluted in the past. Many of its rules were dictated by the National Lottery Act of 2005. However, this has frequently been challenged by the rules of state authorities. Last year, this was limited in its scope, with more governance being given to individual judiciaries.  

Gambling Taxation in Nigeria 

One advantage Nigeria has in its favor is a straightforward taxation law. This manages to get revenue from both domestic and offshore operators. This clear approach is why many well-known operators like Betway Ghana have opened up operations in the country.  

Operators that are domestic fall under lottery taxation rules, which are 7% of their annual income. They also benefit from a range of tax exemptions. This year, a 5% levy was added due to telecommunications and gaming services. For players, there is a 5% withholding tax on their winnings, with a 15% level for nonresidents.  

Those operating offshore must provide a 4.5% duty on all deposits made by players. They must also apply for a Remote Operator Permit, which costs the equivalent of around $100,000, with yearly renewals at half of that. To qualify, countries must follow licenses set by other jurisdictions, such as the UK Gambling Authority or the Malta Gaming Authority.  

All payments have to be done through a newly established system known as the Sentinel National Payment Gateway. According to data published by the company, doing this has already managed to help the country amass 8 billion Nigerian Naira in uncollected taxes.  

Member States Contributions

In addition to this, member states, despite having differing laws and views, have pooled their knowledge and resources to create a common goal. This is done through the Federation of State Gaming Regulators of Nigeria, which is made up of state gambling authorities and lottery experts.  

Their current aim is to turn Nigeria’s young workforce into active creators instead of passive players. This is a country where 70% of the population is under 30, in which a young, eager workforce is emerging. While interstate collaboration is encouraged, states are also developing their own regulations suited to their unique economic circumstances and society.  

Nigeria is a country on the up. With a young population and growing connectivity, it is no wonder that major companies like Betway Ghana are making a home there. The country has a lot to offer, and as well as being consumers of these products, it may soon be a hub for innovation in the sector. This will bring a disposable income to much of its population. With both offshore and domestic operators providing tax revenue, if it can follow similar laws set up in Europe and the US, this industry could play a pivotal part in the economic growth of the country.