Nigeria has the second-highest rate of youth gambling in Africa, with 78% of young people betting regularly. The regulation by the National Lottery Regulatory Commission distinguishes between legal skill games and illegal chance games, yet a lack of specialized treatment centers for gambling addiction remains a critical issue.
Gambling in Nigeria has a complex history, transitioning from being viewed as an antisocial activity to a widely accepted leisure one. The iGaming market has evolved significantly since the late 1990s when the government legalized certain forms of betting and casino games to generate tax revenue.
But how has the Nigerian gaming market evolved in 2024 and what are the expectations for the following years?
Today, Nigeria is the second highest African country in youth participation in gambling, with 78% of its young people betting regularly.
Among them, the most popular forms of gambling include online sports betting, the lottery, and slot machines.
Despite its popularity, illegal gambling remains widespread, particularly in football betting, though the full extent is not well-documented.
A study showed that 36% of Nigerian adults had gambled, with 53% of them gambling daily. This high prevalence indicates that gambling is now seen as a common leisure activity.
However, there are growing concerns that gambling could become a significant public health issue, potentially more severe than substance misuse if not cared for.
Gambling in Nigeria is regulated by the National Lottery Regulatory Commission, established under the National Lottery Act 2005.
This law differentiates between games of skill, which are legal, and games of chance, which are illegal.
Legal forms of gambling include the lottery, land-based casinos, and sports betting, while games like roulette and dice are prohibited for being based solely on luck. Notably, there is no specific regulation for online gambling, creating legal ambiguities.
Research on gambling in Nigeria has shown important facts on its audience. Key findings indicate that factors such as age, gender, financial strain, personality traits, and mental health are significant predictors of gambling behavior and possible addictions.
Motivations for gambling often include the pursuit of monetary gain, influenced by unemployment, economic hardship, and poverty.
Despite regulations of legal age for betting (18), a significant percentage of school-age children engage in gambling, with many having easy access to gambling venues. Studies highlight that while it is seen as risky, it is also perceived as a quick way to earn money.
Due to the perception of gambling as an investment rather than entertainment, Nigerian laws have tightened to curb compulsive betting. However, the lack of specialized treatment centers and Responsible Gambling organizations remains a concern, leading to persistent harmful behaviors.
Awareness of gambling issues is low among the public and healthcare professionals, resulting in many problems going unrecognized and untreated.
Typically, those seeking help turn to substance use centers, which are not equipped for gambling-specific issues, or seek treatment abroad. The absence of Gamblers Anonymous meetings further highlights the gap in local support services.
Nigeria shares many characteristics with other emerging betting markets, particularly in terms of behavior and public preferences.
Research by KTO, one of Brazil’s largest casino online, indicates that the majority of its audience is around 39.2 years old, with most players aged between 25 and 40.
Over half of these players come from higher-income brackets (A and B), with a significant concentration in urban areas, and almost half have at least completed high school, and many hold stable jobs or run their own businesses.
While Nigeria and Brazil share a similar demographic profile in their betting audiences, their motivations for gambling differ significantly.
This divergence is partly due to the gambling education and awareness campaigns prevalent in South American markets.
In Brazil, the emphasis on responsible gambling and public awareness initiatives helps shape more informed and controlled gambling behaviors.
In contrast, Nigeria’s market lacks such comprehensive educational programs, leading to different motivations and potentially higher risks of problem gambling. This highlights the need for Nigeria to adopt more robust public education and responsible gambling measures.
In 2024, the Nigerian gaming market has undergone significant growth and transformation due to various factors.
The Nigerian government has been actively refining and enforcing regulations to better control the gaming industry.
The National Lottery has taken measures to ensure transparency and fairness in both land-based and online gambling operations.
New regulations have been introduced to close loopholes, particularly in online gambling, which previously lacked specific oversight. These efforts have helped create a more structured and predictable regulatory environment.
Despite economic challenges, Nigeria has the potential to become one of the biggest gaming markets in Africa, not just in gambling but also in terms of innovation.
The rapid urbanization and improvements in internet infrastructure have made online gaming and sports betting more accessible.
As of 2024, the projected revenue for the video games market in Nigeria is expected to reach $513.7 million, with a compound annual growth rate (CAGR) of 8.36% from 2024 to 2027.
The future of gambling in Nigeria is driven by the need for better regulation and public health initiatives.
As the industry expands, tackling illegal gambling and addiction is crucial. Over the next few years, creating a well-regulated, sustainable, and responsible gambling environment in Nigeria will be vital.