In South Africa, the iGaming industry is rapidly expanding and becoming more profitable, with nations such as Zambia leading the pace. But what is it about the Zambian market that has allowed it to develop so steadily?
Let us begin with a fundamental assertion: gaming and betting are legal in South Africa, as well as in developing markets such as Zambia. In reality, these organizations are capitalizing on the lucrative iGaming industry to move their economies forward, while simultaneously enhancing job creation and satisfying the needs of a younger population that is more mobile-friendly.
Due to the growth of Zambia’s iGaming industry in recent years, a growing number of internationally recognized operators are now providing verticals to Zambian players. Players may also locate the top online casinos in Zambia at scams.info/online-casino/zambia/, which will help them to guarantee that they have an immersive and legitimate experience when gambling online. Nevertheless, how does this industry continue to fuel worldwide market expansion, and can this be continued in the short and long terms?
Inspiring Global iGaming Development But what is the driving force behind Zambia’s recent expansion?
The fact that the global iGaming sector has expanded in tandem with South African countries such as Zambia and Nigeria is no accident; online gambling earned a worldwide gross gaming yield (GGY) in the region of $75.5 billion in the year ending 2017. This is predicted to grow at an exponential rate in the coming years, with total income from online gambling expected to easily surpass the $100 billion mark by the end of 2020.
The question then becomes, why is Zambia growing at such a rapid and exponential rate? Many factors contribute to this, including the exponential growth of mobile gaming and the rising number of middle-class Millennials who are more willing than ever to spend their hard-earned money online, among other things.
The former has coincided with a considerable increase in the number of mobile Internet users in Zambia, as the country’s citizens have benefited from increased connection and access to a diverse range of foreign iGaming platforms in recent years. Because of this, the cost of data services has decreased significantly since 2017, when the number of Zambians who use a mobile browser fell to just 5.2 million from the previous year. Mobile Internet users, on the other hand, hit a new high of 7.1 million in the year ending January 2018, with a large fraction of this total believed to be engaged in regular online gambling via the use of a smartphone or tablet computer.
South Africa’s mobile penetration is expanding at an alarming pace and has just surpassed the 50 percent threshold, which is part of a broader trend in the country.
Promotion of iGaming in Zambia via Commercial Partnerships and Regulatory Changes
In addition to the rising popularity of the iGaming sector in Zambia, which is a result of the market’s increasing accessibility, operators are also benefiting from a series of commercial collaborations with well-known worldwide companies.
Scout Gaming, a Nasdaq Stockholm-listed company, has launched its revolutionary fantasy sports product in a number of South African regions, including Zambia, as the most recent example of this. After months of negotiations, a deal with worldwide iGaming behemoth Betway was reached. Betway, which has a strong global footprint and a growing variety of online gaming verticals, was the last step in the process.
In addition to Zambia, Betway will roll out its brand new fantasy sports vertical in South Africa, Uganda, Kenya, Nigeria, and Ghana over the course of the next several months, with the possibility of expanding into other countries in the future.
It is unquestionably possible that the introduction of fantasy gaming in Zambia would have a seismic influence on the country’s online gross gaming revenue (GGY) in the following five years, even though it is not likely to have a substantial impact on revenue in 2019. As the popularity of online gambling in Zambia reaches an all-time high, authorities are taking steps to guarantee that it is effectively monetised and converted into a generating business comparable to mining and tourism in the country.
To be sure, both the government and regulatory authorities are fortunate in that they can build on an existing legislative template when it comes to developing the iGaming industry, since lotteries, sports betting, and land-based casinos are already fully permitted in Zambia. This has been the situation since 1992, when the long-standing Casino Act abolished the Casino and Gaming Machines (Prohibition) Acts, allowing regulated enterprises to undertake legitimate gambling activities without the need for a special license.
Although these existing regulations do not directly affect iGaming activity, they have not been successfully or legally changed since 1994 (which was before the world’s first online gambling website was publicly created). This is the only objection that has been leveled at this point. The conclusion is that residents may access virtual casinos and sports betting centers via overseas operators, with only national enterprises being barred from offering their goods as a result of this decision.
Despite the fact that this loophole is typical in a number of nations across the world, it is anticipated that the Zambian government will soon move to implement legislation targeted at regulating internet gambling throughout the country. This will assist to protect players and, in certain cases, boost the amount of market competition, while also allowing the government to tailor the tax levies that online operators must pay to meet their specific needs.