The global sports betting market is on the rise. According to a report by Grand View Research, this market was valued at USD 76.75 billion in 2021 and is anticipated to grow at a compound annual growth rate (CAGR) of 10.2% from 2022 to 2030.
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This growth is no different to Africa. While information on sports betting from all of Africa is unavailable, snapshots from its different countries show its growing popularity. With the increasing availability and falling costs of broadband mobile internet connectivity, several online gaming platforms have recently enjoyed growth in this continent.
As popular as this pastime is, with its rapid growth in demand in at least five African countries, there is an underlying problem which cannot be ignored. Experts and critics alike have raised concerns that as it currently stands, the sports betting industry within the African continent creates a plethora of problems such as widespread poverty and unemployment. Add to this the issue of a poor or non-existent regulatory system, it is becoming increasingly evident that stringent measures need to be implemented.
It would be a good idea for Africa to take note of how the US has managed to regulate such a highly controversial hobby. Indeed, there is always room for improvement, but operators and punters within the North American jurisdiction have a lot to gain with a regulated framework. Lucrative promotions such as no deposit free bets may very well be something fellow African bettors can boast of enjoying too in the near future.
A Source of Income For Daily Needs
Indeed, such tempting promotions can be a great source of income when players gamble recreationally and do not wager more than they afford to lose. However, we are seeing a lot of Africans gambling irresponsibly, with people counting on winnings to fund their daily needs.
According to Japhet Moyo, the secretary-general of the Zimbabwe Congress of Trade Unions, gamblers are viewing sports betting as a regular source of income, and this is also applicable to “those who are in formal employment.” Lagos-based sports psychologist Seun Ajidagba, also observed that people see it as a way to make “quick money”.
First-hand information from the African population confirms these views. A college student claimed that betting is really “a means of surviving…If not for betting, I wonder how some people will survive in this country”.
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Moreover, a regular gambler in Kampala gave an account of the way he is putting up his modest three-bedroom house. He said that he has been building it “small, small” from winnings over the years, once putting a deposit on cement and, another day, sand. He is now looking forward to bet more money because he needs to win another sum to pay for roofing sheets.
The Psychological Impact on African People
Although sports betting is a totally legitimate and legal business in many countries, its impact on Africa and its people is rather alarming, affecting them not only on a material level but even psychologically.
Japhet Moyo, the secretary-general of the Zimbabwe Congress of Trade Unions warns that gambling “becomes addictive and some lose their salaries to betting.”
To illustrate the psychological harm involved, Sfiso Mnguni from a betting shop in South Africa described seeing fellow punters faint under the stress.
Furthermore, a security guard in Uganda, Gideon Matua, reported that two friends of his recently lost their jobs after losing other people’s money and added: “I’ve seen very many people here crying. Someone comes here and puts a big amount on one team. If the team loses, they just go home. Some of them have been chased away from their jobs.”
The Way Forward
Nigerian lawmaker Akin Alabi, who chairs a committee overseeing betting warned about the dangers of sports betting especially in those countries where this market is not well regulated.
So what is the way forward?
Reagan Wamajji, a researcher and analyst with the Uganda-based Center for Policy Analysis, suggested having “deliberate campaigns against gambling, sports betting in particular, similar to what is happening in the tobacco industry,” but he added that being such a profitable business, pushing meaningful reforms might be very difficult.
We can also use what has worked in the past to make way for a better future. We know that back in 2019, Kenya had imposed taxes on all bets and revoked the licenses of several major gambling companies. The results from a government survey revealed that respondents who saw gambling as a good source of income fell by half from 2019 to 2021, from 22.7% to 11.2%. This information may be utilized to think of possible ways to replicate this drop. Controlling this unregulated phenomenon in Africa is imminent, especially in view of the amounts of people falling victims of this unregulated phenomenon.
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