HOT NEWS KENYA How betting companies are dominating Africa 2 years ago Peter Situma Post Views: 537 It is no secret that betting on sports has developed an unprecedented form of popularity in Kenya and many other countries in Africa, making the gambling industry an area worth investing within the job market of the continent. The increase in the number of betting sites can be attributed to the fact that the level of internet penetration in the continent has increased, while the introduction of mobile-based money services have given the sector an added advantage. Some specific countries in Africa, like Nigeria, South Africa, and Kenya have in the latest times experienced a surge in the number of betting companies. When looking at Nigeria alone for instance, there is an estimated revenue generation of about $30 million from betting, while in Kenya the amount may get well over $25 million. Wagering on sporting activities is in many ways taking over Africa. There is no more enjoying sports the old way, as currently the trend is on enjoying it by making money out of it, or lose the same. In the respective countries that include Kenya, South Africa, and Nigeria, the size of the market that offers wagering opportunities was estimated to be worth about $37 billion as of the end of the year 2018, according to a report on the 2014 Gambling Expectation that was conducted and revealed by Price Water House Coopers. Most Appealing Despite the fact that the continent is still regarded and viewed as one with a lot of inadequacies, including having 24% of her population living in abject poverty, the continent has transpired into one of the most attractive and appealing gambling markets in the world, especially when considering sports betting activities. Betting companies operate in such a way that they provide betting platforms online. Punters can then easily get sporting related information on a daily basis from the websites for as long as they have an internet connection. After that, they proceed by publishing funds that they can use of wagering against their most preferred activities in sports. The same also helps the company to determine the best sporting activity that it can rely on for the generation of revenue. Those who are supportive of sports betting claim that this is a business that takes advantage of thousands of African youngsters. Similarly, they also indicate that the sector supplies them with easy and quick money for many people, especially those who do not make much with regards to earning a living, the government generates revenue through the collection of tax from the punters and the betting companies, besides being an addition to the development and growth of the economy of the continent in general. While they could be stating some truths with these claims, those who are against the idea do not believe that it is that helpful. It is also clear that many Kenyans and other Africans are investing a lot of their money in betting on the various websites. For example, if one uses the public means of transport within Nairobi Kenya, there are high chances that the young persons seated on the next seat is busy placing a wager in one of the websites. It is a trend that may not likely come to an end any time sooner. It is also the main explanation as to why most betting businesses from all over the world are converging and concentrating their businesses in Africa. 800,000 Youths First and foremost, as a continent, Africa has the largest number of people who are below the age of 35. For example, for those who are between the ages of 15 and 24 are more than 200 million. In Kenya, those who are less than 35 years constitute 80% of the total population. Within the same country, 800,000 young adults get into the job market, all of who are always enthusiastic that they will get a job opportunity. However, the rate of unemployment is also high among this age group, as it stands at 35% compared to 10% that is the overall percentage for the country. These are the people that many betting companies target for their money as their sites provide with them numerous opportunities of making quick money. Something else that needs to be considered is the fact that there is a large fan-base of football in Africa, as most people are followers of football from Europe, including the English, Spanish, German, Italian, and French leagues. From that fact, betting companies see numerous opportunities with regards to introducing betting platforms for the Africans, as they would virtually bet on any of these games that take place within these leagues. By 2050, it is expected that the population in Africa will increase immensely, which will also translate into having the largest population of people that are below the age of 35 years. If the rate of unemployment continues as it is, most of them at that time will still be underemployed or unemployed, and as such, they may still turn to easier means of making money. In such a case, they may turn to sports betting as it is an area that one can easily make a lot of money after staking as little as $1. A high chance of addiction Cigarettes and alcohol are products that are consumed on a daily basis as they have huge sales. Both of them have something in common with betting on sports, and it is that they are all addictive. The biggest way that sports betting is attractive is the fact that it has a high proposition value, where one can use almost nothing in wagering and in the end win a lot of cash. Given its value proposition and the potential exponential benefits, there is no surprise with how it is an addictive venture for many people in Africa, despite that most of them are also poor. It is addictive to the extent that when they do not have money to use for staking, they go to an extent of borrowing. Weak laws on sports betting In the United States and in most European countries, online betting laws are very strict to an extent that betting companies are always under pressure. It is as such that most of them venture into Africa where many countries have laws that are somehow lax. Except for South Africa and probably Kenya in recent times, betting laws in many other countries in Africa are not as strict as in US and Europe, as regulation is still relatively poor. This lax ecosystem with regards to regulation is harmful to the customers, but it also acts as an attractive incentive for many companies both locally and internationally to penetrate the African market. However, it is also worth mentioning that many Muslim countries and the Gambia in Africa have completely banned or placed very stringent rules on betting, thereby stopping the vice completely or ensuring that it is on the very minimal. It is also crucial to mention the fact that internet penetration is a contributing factor as many areas in the continent are slowly getting internet coverage. This is also possible as mobile phones are increasing the penetration, and as such many betting companies are partnering with operators of mobile phones to have their products linked mainly with mobile money service, including Airtel Money, M-Pesa, and Orange Money. The most interesting bit about this is the fact that it is not a must that one has internet to bet, as one can also bet using USSD codes or SMS, hence making it easier to pay and participate. How Sports betting Business makes money The business of sports betting is more on the basis of probabilities and odds. In most instances, people place their wagers depending on common opinion, feeling of the gut, research, or by simply relying on luck. After every bet, there are two kinds of people that exist; the winners and the losers. Handling those who have lost is easy, as they simply get nothing. However, handling the winners means that the business has to make a lot of money from those who lose to the extent that they can pay the winners, while also getting some commission in the form of profit. Accomplishing this is through using a mixture of numbers and strategy in such a way that they come up with odds that will ensure there is enough income from losers to make profits and pay the winners, something that is quite interesting. Betting can either make or break an individual. That is why every gamer must be cautious of this industry. In case luck knocks at your door, you could walk away richer. On the contrary, you could drain your fortunes in a single click of the button. The choice is all with you because you can choose to make wagers carefully and practice safe betting practices. About Post Author Peter Situma Peter Situma is a lover of football and a staunch supporter of Chelsea Football Club. He has been working as a sports betting and casino gambling writer for over 5 years. He is also interested in technology and playing FIFA See author's posts Peter SitumaPeter Situma is a lover of football and a staunch supporter of Chelsea Football Club. He has been working as a sports betting and casino gambling writer for over 5 years. 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