Market Landscape Research: Sports Betting Platforms in Nigeria
While economic hardship in Nigeria has worsened, pushing many to seek quick solutions, internet access has made sports betting emerge as a popular and lucrative opportunity for Nigerians.
Nigeria has experienced severe economic challenges in recent years, largely due to poor governance, resulting in rising inflation, unemployment, and widespread hunger. The term “SAPA” has become common among Nigerians, symbolizing the persistent state of hunger and poverty many face.
Inflation in Nigeria has also consistently exceeded the African and Sub-Saharan averages of 16% since 2017, with no meaningful reduction in sight. Basic food items, such as tomatoes, are now unaffordable luxuries for many Nigerians.
What have Nigerians resorted to in hard times like this?
— — — Sports Betting— — —
Sports betting in Nigeria has grown into a multi-billion naira industry, with its roots tracing back to the early 2000s. Perhaps one of the oldest betting platforms that provide the most insightful view of the market is Premier Lotto, a platform popularly known as ‘Baba Ijebu,’ founded in 2001 by Chief Adebutu Kensington.
Initially limited to traditional betting shops and kiosks, the rise of internet access and mobile technology transformed the landscape, making online betting the dominant force by the 2010s.
Data shows that the majority of Nigerian youths [both male and female] participate in sports betting.
![Majority of Nigerian youths [both male and female] participate in sports betting.](https://miro.medium.com/v2/resize:fit:2000/format:webp/1*-smEXqX1mc9nGlA65Ppo1g.png)
This market landscape research provides a detailed analysis of sports betting platforms operating in Nigeria. Each platform is assessed based on:
- Product features,
- user experience,
- payment options,
- pricing models,
- commission structures,
- regulatory compliance,
- distribution strategies, and
- market positioning.
Introduction
Nigeria’s sports betting market has seen rapid growth in recent years, fueled by increasing internet access, widespread use of mobile devices, and economic challenges that push many citizens to seek quick alternative income sources.
At the October 2023 national gaming conference in Lagos, Bello Maigari, Executive Secretary of the National Lottery Trust Fund said,
“Currently, there are over 65 million Nigerians actively engaging in this activity, spending $15 on average every day. On record daily, 14 million bets are taken, and payments are made online. “
The deepening economic crisis has made Nigerians resort to sports betting and photos like the one above motivate Nigerians to bet even more.
One day, e go reach my turn [one day, I will be a winner too]
Social media posts on TikTok and Instagram are now filled with sports betting Ads.
Is this stopping anytime soon? No
Why? Increased inflation, increased access to the internet, increased internet penetration of sports betting companies, and increased access to digital devices.
Product Features
As one of Africa’s largest sports betting markets, Nigeria’s sports betting platforms have evolved with intense competition, offering various features and catering to millions of users. The first feature attracting bettors [customers who bet] is the variety of sports and events covered by the sports betting site.
Variety of Sports and Events Covered
Nigerian sports betting platforms generally focus on football, given its massive local following. Platforms like 1xBet, Bet9ja, NairaBET, and SportyBet offer betting options on local leagues (e.g., NPFL) and international leagues (Premier League, La Liga, UEFA Champions League). Other popular sports include basketball, tennis, boxing, and athletics.
Sports betting companies focused on Badminton, cricket, or hockey would experience poor patronage as Nigerians do not consider those listed sports favorites.
Types of Bets Offered
- Single Bets and Accumulator Bets (combining multiple selections into one bet) are standard across all platforms. With one bet of N300, a bettor can strategically bet to win N500,000 using single or accumulated bets.
- Live Betting has become a significant feature, allowing users to place bets during ongoing matches, especially for football, basketball, and tennis.
- Some platforms, like BetKing and SportyBet, offer In-play Statistics during sporting events and real-time updates to enhance live betting.
Mobile Applications
Mobile is king they say and sports betting is not left out.
- Bet9ja, Betway, and NairaBET have robust mobile apps available for both iOS and Android. These apps provide ease of use, quick navigation, and push notifications for real-time updates.
- BetKing and 1xBet have also invested heavily in mobile apps, allowing for seamless betting and account management.
Special Features
- Cash-out Options are widely available, allowing bettors to secure a portion of their winnings before the event ends.
- Live Streaming of events, although limited, is available on platforms like 1xBet and BetKing, giving users the ability to watch and bet simultaneously.
User Experience
Simplicity makes sports betting even better. Both online and offline customers are given a friendly and easy-to-navigate user experience.
Offline Customers and Bettors
Offline customers can walk into the betting store and place their bet while some betting stores like 1xBet require registration and biodata verification.
Online Customers and Bettors
Website and App Usability
- Bet9ja and BetKing feature clean, user-friendly interfaces, making it easy for users to navigate betting markets.
- 1xBet, while offering a vast array of options, sometimes overwhelms users with cluttered designs, impacting the ease of use.
Registration and Verification Process
- Registration across platforms is generally simple, requiring only basic details. However, platforms like NairaBET and Betway have stringent Know Your Customer (KYC) processes to comply with regulatory standards.
Navigation and Load Times
- Most platforms, including Bet9ja and BetKing, have optimized their sites for quick loading, ensuring smooth betting experiences even during peak periods.
Customer Support
- Customer service varies widely. Bet9ja offers 24/7 support through live chat, email, and phone, while others like NairaBET and BetKing offer limited hours of support. Response times, especially for complex issues, can vary from immediate to several hours.
Payment Options
Payment options play a crucial role in the user experience for sports betting platforms in Nigeria, impacting how quickly bettors can deposit funds and withdraw winnings.
Most platforms offer a variety of methods to cater to the diverse financial needs of their users.
- Bank Transfers: All major betting platforms support direct bank transfers, allowing users to deposit and withdraw funds quickly and securely.
- Debit and Credit Cards: Visa and MasterCard are widely accepted, offering a fast, secure way to fund betting accounts.
- USSD Codes: Many platforms, offer USSD payment options, allowing users without smartphones or stable internet connections to easily deposit funds using simple codes on their mobile phones.
- E-Wallets and Mobile Payment Solutions: The integration of mobile wallets like OPay and Paga is becoming increasingly popular, allowing seamless deposits and withdrawals. These platforms provide convenience, especially for unbanked users.
- Payment Gateways: Popular gateways like Paystack and Flutterwave enable quick processing of transactions, enhancing user experience with near-instant deposits.
- Transaction Processing Times and Fees: Deposits are usually instant across most platforms, while withdrawals can take anywhere from 30 minutes to 48 hours, depending on the method. Fees are typically minimal or non-existent, though some platforms may charge small fees for bank transfers.
The wide range of payment options ensures that Nigerian bettors have flexible and convenient ways to engage with betting platforms, contributing to the sector’s rapid growth and accessibility.
Let’s compare how each sports betting company handles payments;
Bet9ja
Bonus: none.
Payments: bank transfers, USSD codes, debit and credit cards.
Transaction processing time: 30 minutes to 48 hours.
Crypto payment: none.
1xBet
Bonus: offers a welcome bonus to new customers and bettors, with frequent bonuses to old customers and bettors.
Payments: bank transfers, USSD codes, debit and credit cards.
Transaction processing time: very fast and instantaneous.
Crypto payment: yes.
Betano
Bonus: offers a welcome bonus to new customers and bettors, with frequent bonuses to old customers and bettors.
Payments: bank transfers, USSD codes, debit and credit cards.
Transaction processing time: 30 minutes to 48 hours.
Crypto payment: no.
22Bet
Bonus: offers a welcome bonus to new customers and bettors, with frequent bonuses to old customers and bettors.
Payments: bank transfers, USSD codes, debit and credit cards.
Transaction processing time: 30 minutes to 48 hours.
Crypto payment: no.
BetBonanza
Bonus: offers a welcome bonus to new customers and bettors, with frequent bonuses to old customers and bettors.
Payments: bank transfers, USSD codes, debit and credit cards.
Transaction processing time: 30 minutes to 48 hours.
Crypto payment: no.
Betano
Bonus: offers a welcome bonus to new customers and bettors, with frequent bonuses to old customers and bettors.
Payments: bank transfers, USSD codes, debit and credit cards.
Transaction processing time: 30 minutes to 48 hours.
Crypto payment: no.
Pricing Models
Data from a 2022 TGM research shows that Nigerians mostly bet on sports including casual games played among friends and family to win. This means that sports betting platforms with better pricing models and payouts would have more customers.
Bettors seeking the best returns often compare odds across platforms before placing wagers, and sportsbooks are in constant competition to offer more favorable odds to retain their customer base.
Sports betting platforms like Bet9ja, BetKing, SportyBet, and 1xBet offer varying odds, often designed to attract different segments of bettors.
1xBet and BetKing are known for offering some of the most competitive odds in the Nigerian market, especially for football matches.
Minimum and Maximum Stake Limits
Stake limits vary significantly across Nigerian sports betting platforms, catering to casual and high-stakes bettors.
- Bet9ja typically has a minimum stake of ₦100, which is accessible to most users, while the maximum payout can reach up to ₦50 million, depending on the bet type and event.
- BetKing and SportyBet follow similar patterns, offering low minimum stakes to attract a broad range of bettors, but with varying maximum payouts. BetKing, for example, boasts a maximum payout of ₦40 million, which appeals to high-stakes bettors.
- 1xBet, an international operator with a significant presence in Nigeria, has no strict maximum stake on many bets, making it a popular choice for high-rollers, although it still maintains a ₦100 minimum bet to cater to lower-income bettors.
Payout Rates
- Payout rates, or return-to-player (RTP) percentages, are another critical factor for bettors. Platforms offering higher payout rates attract seasoned bettors who understand the importance of maximizing returns.
- Bet9ja offers payout rates ranging from 90% to 95%, depending on the sport and event. Higher payout rates are typically found in popular football leagues.
- BetKing and SportyBet offer slightly lower payout rates, often in the 85% to 92% range, but attract users with additional promotions such as enhanced accumulator payouts or free bets.
- 1xBet generally offers some of the highest payout rates in the market, with rates sometimes exceeding 96%, making it particularly appealing to professional bettors who are looking for the best value for their money.
Commission Structures
Most platforms do not charge direct commissions on bets, but affiliate programs are a key revenue source. For example, Bet9ja’s affiliate program offers up to 20% commission on referred players.
Bet9ja and Betway run extensive affiliate programs that reward marketers for driving traffic to their sites. 1xBet also offers one of the most lucrative affiliate commissions in the market.
Regulatory Compliance
The most important feature for all sports betting companies.
In Nigeria, sports betting companies must obtain a license from regulatory authorities to operate legally. The National Lottery Regulatory Commission (NLRC) is the primary body responsible for issuing licenses to betting operators.
Additionally, a State’s Lottery Board oversees licensing for betting companies operating within the state. International platforms like 1xBet also secure local licenses, allowing them to operate legally in Nigeria while maintaining compliance with international standards.
Nigeria’s gambling laws are designed to ensure fair gaming practices, protect consumers, and prevent exploitation.
- Platforms are required to implement strict Know Your Customer (KYC) protocols, which include verifying the identity of users during the registration process to prevent underage gambling and fraud.
- Anti-money laundering (AML) measures are also mandatory, with betting companies required to report suspicious transactions to authorities.
- Betting companies must adhere to tax regulations, including remitting taxes on their earnings and ensuring that taxes on winnings are deducted appropriately when applicable
Responsible Betting Measures in Place
Once sports betting becomes addictive, it’s no longer betting but addictive gambling and a bad habit that often leads people into crime.
Responsible betting is a key concern for regulators, and Nigerian betting platforms are required to implement safeguards to protect users from developing unhealthy habits.
- Self-exclusion tools: Most major platforms, such as Bet9ja and BetKing, offer self-exclusion options, allowing users to voluntarily restrict their access to the platform for a specified period if they feel they are losing control over their gambling.
- Deposit and betting limits: Some platforms allow bettors to set limits on how much they can deposit or bet in a given period, encouraging users to gamble responsibly.
- Educational resources: Platforms like NairaBET and SportyBet feature responsible gambling information on their websites, providing resources on identifying problems associated with betting and accessing support services.
- Collaboration with support organizations: Nigerian betting companies often partner with organizations to provide counseling and support for individuals struggling with gambling addiction.
Distribution Strategy
According to a report from ORBIT, 64% of 12,000 sample bettors were smartphone users, while 36% did not use smartphones.
However, fewer than 0.5% of those smartphone users had apps from major betting companies like SportyBet, BetKing, Bet9ja, or 1xBet installed on their phones. This suggests that,
“mobile betting transactions remain significantly lower than offline betting through physical agents,”
indicating that the market is still in the early stages of adopting online betting platforms.
According to The Africa Report, the requirements to become a sports betting agent are minimal, typically including “a shop or store in a high-traffic location, at least two cashiers, three televisions for displaying live games and odds, a stable internet connection, and three laptops.”
This simple setup allows agents to operate physical betting outlets, which remain popular despite the rise of online platforms.
The Nigerian sports betting industry presents a significant investment opportunity, with companies investing heavily in distribution and marketing to solidify their dominance.
In 2019, Bet9ja spent ₦1.08 billion as the headline sponsor of Big Brother Naija, one of the country’s most-watched TV shows, only to be overtaken the following year by competitor, Betway.
In 2024, most influencers on TikTok and Instagram are ambassadors to sports betting companies and include Ads, promotions, discounts, and giveaways in their content.
The true investment appeal of sports betting, lies in its vast potential for expansion, particularly in offline activities through betting shops and agent networks, which continue to thrive alongside digital platforms.
This combination of robust growth, heavy marketing, and offline proliferation eases distribution and makes sports betting in Nigeria a lucrative opportunity for investors.
- Marketing Channels: Sports betting companies rely heavily on online advertising via Google and Facebook ads. They also sponsor local sporting events and teams, such as BetKing’s sponsorship of the Nigerian Premier Football League.
- Social Media Presence: Sports betting companies maintain a strong presence on Twitter, Instagram, and Facebook, using these platforms to engage customers, offer promotions, and provide updates.
- Influencers and Key Opinion Leaders: play a significant role in promoting these platforms. For instance, Betway partners with high-profile Nigerian sports personalities to enhance brand visibility.
- Offline Presence: Sports betting companies have extensive networks of physical betting shops and kiosks across Nigeria, serving users who prefer in-person betting experiences.
Market Positioning
Nigeria’s inflation has been higher than the average for African and Sub-Saharan countries for years now, and even exceeded 15% in 2017 — and a real, significant decrease is nowhere in sight.
The bigger problem is its unsteadiness, however: An inflation rate that is bouncing all over the place, like this one, is usually a sign of a struggling economy, causing prices to fluctuate, and unemployment and poverty to increase.
As inflation rises, the cost of living increases, eroding the purchasing power of many Nigerians, and individuals, particularly those facing financial hardships, turn to sports betting as a potential way to supplement their incomes or make quick money.
“Currently, there are over 65 million Nigerians actively engaging in this activity, spending $15 on average every day. On record daily, 14 million bets are taken, and payments are made online. “
Bello Maigari, Executive Secretary of the National Lottery Trust Fund.
With low minimum stakes (as low as ₦100 on some platforms), sports betting is an affordable way to earn, even during tough economic times.
In 2020, Nigeria’s betting industry crossed the $2 billion mark, with over 60 million Nigerians between 18 and 40 spending $5.5 million daily.
Bet9ja, the largest betting platform in Nigeria, reportedly generates monthly revenues of about ₦10 billion.
According to Statista, the Online Sports Betting market in Nigeria has a projected market size of $294.20 million in 2024 and $402.2 million in 2029.
In December 2020, Multichoice, the parent company of DStv, made a strategic investment by acquiring a 20% stake in BetKing for $81 million. This shows the viability of the Sports betting market in Nigeria and the massive opportunity it presents to investors.
Conclusion
The Nigerian sports betting market stands as one of the most dynamic and rapidly growing industries in Africa, offering vast opportunities for investors.
With a population of over 200 million, a burgeoning youth demographic, and increasing smartphone penetration, the demand for sports betting continues to surge. The industry’s current market value is estimated at $294.20 million in 2024 and $402.2 million in 2029.
The robust combination of online and offline channels, massive marketing investments by top players like Bet9ja, BetKing, 1xBet, and Betway, and strategic investments from international giants such as Multichoice, showcases the lucrative nature of this sector.
The diversity of payment options, ease of entry through agent networks, and the increasing shift toward mobile betting ensure continuous market expansion.
Investors will find a very special market in sports betting characterized by high growth, untapped potential, and pleasing returns on investment.
References
https://www.instagram.com/reel/DAGHg40Mv-q/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==
