“African market is very different both in terms of player preferences and legislation”
African Gambit spoke with Bartek Borkowski, Co-Founder of CreateIT, the company that has recently prepared a comprehensive report on several African markets. His insights delve into the dynamics and potential of the iGaming sector across the continent, with a particular focus on Kenya, South Africa, and Nigeria.
Are companies currently operating in Kenya utilizing the full potential of this market, or are they close to doing so? Is there still room for growth here?
The iGaming market in Kenya continues to grow and there is a lot of room for that, as the user penetration is at 0.6%, by the 2029 there should be around 430 thousand players in Kenya alone. So, there is still room to grow, we can look at RSA where the local penetration is at 4% and there are 2.7 million players, and the market still grows year by year.
We must remember that the African market is very different both in terms of player preferences and legislation. What works great in South Africa may not work in Kenya, for example. What can be seen in the Kenyan market is a slight shake-up of the growth sentiment by changes in legislation that make it a less attractive market for the player himself. Nonetheless, the overall statistics still indicate that the number of players at online casinos in Kenya will continue to grow – perhaps a little more quietly than expected, but still upward, nonetheless.
Having that said – the Kenyan market is undeniably an attractive market for online casino owners.
Using the example of Kenya and the GameMania brand – what could be the reason behind such a sudden drop in organic traffic?
To answer 100% correctly one would have to conduct audits and track the changes that have been made to the GameMania platform and the brand’s marketing activities policy. Analyzing more than just the last three months, one can see that GameMania scored its first sharp decline as early as September of last year. Subsequent visibility changes are an attempt to get back on track. Another thing worth mentioning here is that in February the whole world has felt the subtle or less subtle turmoil and changes in Google’s algorithms.
How can this be connected to users spending the longest amount of time on this operator’s website?
After seeing this data, we instantly knew that the issue is connected to navigating the website, it simply must be difficult and non-intuitive. The registration process or game selection may make it difficult for them to find what they are looking for, and through negative experiences, they do not return to the casino. This could be easily fixed by some changes to the UX & UI of the website.
How much more mature is the South African market compared to, say, the Kenyan market?
As I’ve said in the first question – the South African market is almost incomparable to Kenyan market. It had a few more years to mature, making South Africans a lot more open to the iGaming market and its offer. We are looking at 430 thousand to 2.7 million players in 2029 in Kenya vs. South Africa. Over 6 times more players and over 6 times higher market penetration. South African market is mature, although constantly growing.
The report notes that the time spent on an operator’s website is not a definitive measure. However, why do players in Kenya spend more time on operators’ sites than players in South Africa?
It’s very visible that players spend close to 9 minutes on Kenyan websites, but South African players spend closer to 4 minutes on the main page. That could confirm the hypothesis that RSA market is much more mature and UX optimized, making the players find what they are looking for right away. Of course, we should also take a closer look to the websites where players spend only a minute – that should also spark the thought that the website might not be working properly.
It is important to remember not to rush to hypotheses in assessing whether it is good or bad that players are long on the site. It should always be determined through the perspective of the whole path the player is going through and whether the right goal that we and the player care about, i.e. registration, playing, deposit, etc., has been achieved. Unfortunately, session length is one of those parameters where the statement “it depends” fits perfectly.
What factors might play the biggest role in the growth of the South African market in the coming years?
The growth of the South African iGaming market in the coming years will be influenced by a confluence of regulatory, technological, economic, and cultural factors. Additionally, the market will benefit from changing consumer behavior and demographics, with a younger, tech-savvy population showing greater interest in online gambling.
Another aspect of growing this market is localization of content, including games that cater to local tastes and preferences, along with services in local languages and support for preferred payment methods, will enhance user experience and market penetration.
In Nigeria, the top five listed in the report remain fairly stable in terms of organic traffic. How accurately does this snapshot reflect the overall market situation?
Nigeria is primarily betting and this is definitely a gaming sector in the African market with a very stable position and a longer history than online casinos. Hence the changes in organic growth are not so visible. In addition, we can see that on the Nigerian market there are mostly big brands which have already proven tactics and much more experience from other markets.
Why is the performance parameter so low in Nigeria, and how can it be changed?
For us, it’s a message that online casino operators who want to stand out quickly among the competition need to pay attention to their internal brakes that are on their platforms. Improving the performance of the sites on Nigerian platforms means working on a sure footing – so that operators and players will quickly see an increase in the quality of the platforms’ performance, which is especially important in the context of poor internet quality and speed.
Poor platform performance translates into a poor user experience, with users hesitant to return to the site. Low retention rates are a major problem for Nigerian online casinos. To deal with this issue, it is necessary to look at the problem’s basis, and a thorough audit of the platform, a mystery player test to catch any inconveniences, and brand security to respond to errors from players will help. Having data these actions provide, we can go ahead and start breaking the ice and making the platform reliable, intuitive and pleasant to come back to. This should be done through UX & UI audits and development, SEO optimization, recommendation engine and marketing automation at the very end. Having all that we can sit back and watch how CRR grows and platform performance increases, working for you.
Is internet access level, across Africa, the main indicator describing the potential of this market?
The iGaming scene in Africa holds immense promise, but it’s not just about having internet access. Sure, that’s important, but there’s a whole web of factors at play. Economic factors are huge – things like how much disposable income folks have and how stable the economy is. Then there’s the regulatory side of things. Having clear rules that support the industry is key for building trust and seeing growth. And let’s not forget about payment systems – they need to be reliable and easy to use. Plus, cultural attitudes toward gambling vary across the continent, and demographics matter too. The young population and urbanization rates all add to the mix, shaping the potential of the market.
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