Given the Nigerian population of 213.4 million, and the appetite for gambling in the country, there is potential for investment and growth in the online casino market. However, although sports betting is legal online in Nigeria, there is no regulation of online casinos. This legal grey area means that no online casinos currently operate in the country.
Instead, Nigerians who want to play casino games online do so at offshore sites that are licensed in other countries. Whether this legal position will continue is unclear, but if regulation of online casinos ever happens, there is potential for investment and financial benefit from the industry.
The legal online casino landscape in Nigeria compared with the UK and the US
In 2005, the Nigerian Lottery was first regulated by the National Lottery Regulatory Commission. In addition to this, gambling in Nigeria is dealt with under Chapter 22 of the Criminal Code Act enacted in 1990. This Act defines which forms of gambling are legal, including sports betting and land-based casinos. Online casinos are not covered by the Act.
This position is very different to the United Kingdom (UK), where online casinos are regulated and licensed by the UK Gambling Commission (UKGC). This licensing ensures fair play and a secure environment. Casinos that are licensed in the UK are also part of the GAMSTOP scheme, which allows people to register and self-exclude from all of these licensed casino sites. It’s worth noting that, like in Nigeria, some people play at offshore sites that are licensed in other countries and not part of the GAMSTOP scheme, such as this list of sites that provide a safe and reputable playing experience.
In the United States of America (US), the legal position of online casinos lies somewhere between that in Nigeria and in the UK. Online casinos are regulated in five states but not in the remainder of the country. Like in Nigeria, sports betting is more widely regulated, in 36 states. It seems that the US is an example of the path Nigeria could begin to take if a decision is made to regulate online casinos.
Investment in online casinos globally
As you would expect, the benefit of investment in online casinos is linked to the regulation of the industry. It’s also linked to the expansion of Internet technology, with 4.95 billion people globally having access to the Internet, a penetration level of 62.5 %. The more people have access to the Internet, the more potential there is for growth in casino gaming, and the more beneficial the landscape is for investors.
For example, there are significant profits to be made from the industry, that investors can benefit from. The top casino sites make around $800 million in revenue. In the UK, these top sites are part of a gambling industry that had a total revenue of over £14 billion in 2022. In the same year, casinos and mobile gaming apps in the US generated revenue of $54.93 billion and casino gaming designers in the US can earn upwards of $100,000 annually, showing how lucrative the industry is.
Looking at the potential for a healthy return on investment indicated by the UK and US online casino markets, as part of the wider gambling industry, it seems there is an opportunity to unleash the same potential in Nigeria. However, this development will only happen if the decision is made to regulate online casinos in the country. Only time will tell if this happens.