Nigeria is one of the many African countries that is being engulfed with the epidemic of online sports betting. This includes online poker, casino games, and sports betting. The Nigerian sports betting and gaming industry has grown astronomically in the last two years. This exceptional growth can be attributed to the large population of the nation and increased access to internet devices.
Nairabet was the first domestic online sports betting website in Nigeria. Since its existence, many more gambling websites have opened shop in Nigeria including Bet9ja, BetKing, MerryBet, SureBet etc.
Is sport betting legal in Nigeria?
All forms of gambling in Nigeria including sports betting is regulated by the National Lottery Regulatory Commission. The lottery was legalized with the National Lottery Act, 2005 and gambling is defined by Chapter 22 of the Criminal Code Act enacted in 1990. It is important to note that all forms of gambling are restricted to all citizens of Nigeria below 18 years of age.
On the state level, Lagos State has set up a body known as Lagos State Lotteries Board (LSLB). LSLB was established by the Lagos State Lotteries Laws Cap L89 2004 Laws of Lagos State and it is responsible for regulating lotteries, sports betting, scratch card & interactive games, casino, gaming machines operations, pools betting, promotional competitions and other gaming activities within Lagos State.
Also Read: How To Make Money On YouTube In Nigeria.
How profitable are sports betting business in Nigeria?
Sports betting is an extremely profitable business in Nigeria. Roughly 60 million Nigerians between the ages of 18 and 40 are involved in active sports betting. On average, these punters spend around 3,000 Naira every day on bets. Sports betting provides Nigeria football fans with the opportunity to earn money from what they love. In 2019, sport betting shops can now be spotted in almost every street in Lagos and new ones are propping up daily.
A leading report on Gambling in Africa published in 2016 by KPMG reeled out some startling numbers on the sports betting industry in Nigeria. As at 2016, the leading sports betting company in Nigeria, Bet9ja rakes in an average monthly turnover of $10m while the second player in the industry, NairaBet makes an average turnover of $3m to $5m with a 20-30% margin on profit.
How to start sports betting business in Nigeria
The online sports betting industry in Nigeria has registered tremendous growth in the past few years with more and more operators entering the market. This means that it’s getting more and more challenging to stay ahead of the competition and differentiate yourself from the rest.
How do you start an online sport betting business in Nigeria? To start an online betting business, you need the following:
1. Get professional betting software
This is the most important decision to make since you will be entering a long-term partnership with your sports betting (iGaming) software provider. Take your time to evaluate the existing options in terms of quality of services offered and price. You want to choose a software provider that has a deep understanding of the online gaming industry and experience in launching successful online betting platforms.
2. Acquire the necessary licenses
Obtaining a gaming license in Nigeria requires approval from several operators. The main operators are the Nigerian Investment Promotion Commission (NIPC), Special Control Unit against Money Laundering (SCUML), and the National Office for Technology Acquisition and Promotion (NOTAP). Some operators are also required to secure a Capital Importation Certificate and liaise with the Federal Inland Revenue Service (FIRS) to get a Tax Identification Number and register for Value Added Tax (VAT).
3. Choose a payment system provider
When you start an online gaming business, you need to make an agreement with a payment service provider, so you and your players can quickly and easily make transactions. For convenience purposes, it’s advisable that you provide players with multiple payment options for users.
4. Build and launch your betting website
The way your website looks is very important. You need to choose an attractive design or invest in your front end development because it is the most important aspect for your players when choosing among tens or hundreds of similar betting websites. Also, make sure that your website is responsive on mobile devices because that is where the largest audience resides.
Top 5 sport betting sites in Nigeria
With a large number of options for punters in Nigeria in terms of both domestic and international betting platforms, deciding which bookmaker is the best is no easy task. Based on Alexa’s ranking, below are the top 5 sports betting websites in Nigeria.
Betway registered itself in the Nigerian market with the aim of offering a dynamic, easy-to-use betting product that Nigerians can access to win big off of small bets. This means that you can expect low minimum bet requirements with massive potential payouts above the industry standard.
According to the rankings, Bet9ja is the No. 1 online betting website in Nigeria and the second most popular website in Nigeria after Google. Whether you are a fan of the Premier League, the online casino, virtual and racing products or Super9ja jackpot, Bet9ja is the bookmaker for you.
1xBet is a Cyprus based gambling company with outreach operations in Nigeria. The platform has managed to gain tremendous popularity within a short period of time.
One of the newest Nigerian betting sites is Sportybet. Sportybet offers all games betting which include basketball, football, tennis, rugby, cricket, volleyball, ice hockey, handball, darts, etc.
BetKing is the fastest growing betting company in Nigeria. With headquarters in Lagos State, BetKing is working towards a nationwide expansion that places several physical shops across all states in Nigeria.