(Ecofin Agency) - The global online gambling market has been expanding rapidly for several years, transforming gaming habits worldwide. Despite socio-economic challenges, Africa is a promising ground for growth in this sector.

The global online gambling market is booming, with projections showing it will grow from $84.79 billion in 2023 to $164.53 billion by 2033, at an annual growth rate of 6.85%. Indian research firm Spherical Insights & Consulting issued a report about the matter, explaining that the growth will primarily stem from increased digital transformation that eases access to online gaming, especially in developing countries.

The report highlights several key factors fueling this growth. Celebrity endorsements, aggressive advertising, more online payment options, the rise of cryptocurrencies, and digital technologies are all playing a central role. In 2023, mobile gambling accounted for 87% of the global online gaming market—a trend likely to continue with the wider adoption of smartphones.

Sports betting dominated the global market in 2023, making up 65% of online gambling. This trend is especially strong in Africa, where football fans fuel a high demand for sports betting. A 2021 Geopoll survey revealed that 84% of Kenyans place at least one bet daily, the highest per capita betting rate in Africa. Nigeria follows with 78%, then South Africa (74%), Ghana (70%), Tanzania (62%), and Uganda (60%).

Europe remains the global leader in online gambling, bolstered by the legalization of online games in countries like France, Germany, Italy, and Spain. The Asia-Pacific region, led by China and India, is also growing rapidly. In Africa, while the market is still emerging, rising internet access and strong youth interest in online betting signal a vibrant growth potential.

However, Africa faces unique challenges, including relatively low financial indicators in this sector and socioeconomic factors impacting market growth. With up to 40% of people in some regions living below the poverty line and high youth unemployment, online gambling is often viewed as a potential source of income.

To sustain growth ethically, Africa must address critical issues. The report suggests adopting regulations similar to those in Europe to secure the market, protect users, and attract foreign investors. A structured regulatory framework could foster market growth while ensuring consumer protection, the report notes.

With mobile connectivity improving and disposable incomes rising, global operators are increasingly investing in African platforms and launching culturally tailored campaigns. These initiatives could bring economic benefits to African countries, including job creation in marketing and tech, partnerships in advertising, and stronger digital infrastructure to meet demand. Moreover, tailored regulations would increase consumer confidence in the industry, positioning online gambling as a driver for economic growth and development across the continent.

To ensure sustainable expansion, Africa must structure this market effectively, while protecting users from cybersecurity risks and gambling addiction.