According to Statista, Nigeria’s iGaming market is set to expand at a compound annual growth rate (CAGR) of 6.09% between 2024 and 2027.
Looking at the most recent H1 2024 data for the Nigerian market via iGaming analytics platform Blask, the country seems to be well on the way to establishing itself as one of the most influential in African iGaming.
Exploring the Blask Index for the Nigerian iGaming market
Let’s start by looking at Blask’s own “Index”. This quantitative measure gauges the size of a country’s iGaming market. In H1 2024, Blask says the peak of active Nigerian players reached 21 million in February, with an H1 average of 18.8 million active players across Nigeria. How does this compare as a year-on-year improvement? Blask’s H1 2023 average came in at 16.2 million active players, representing a 2.6 million year-on-year rise – 16% in percentage terms.
There’s also been a steady rise in first-time players too. Blask uses expected first time deposits (eFTDs) as a measure for gauging iGaming market growth. In H1 2023, there was a total of 3.3 million eFTDs compared with 3.7 million eFTDs in H1 2024. This represents a 12.1% year-on-year improvement. Both of the above metrics suggest Statista’s 6.09% CAGR could yet be surpassed – and it gets better.
An encouraging sign for gross gaming revenues
Blask’s expected gross gaming revenue (eGGR) for the Nigerian iGaming market, which estimates the total sum of money wagered minus winnings, hit a total of $95 million in H1 2024. That’s up 15.8% year-on-year from $82 million.
All the indications point to an upwardly mobile iGaming market in Nigeria, underpinned by a string of forward-thinking operators. There are several Nigeria-friendly iGaming platforms working hard to innovate and deliver the next-generation casino games for the new wave of players of legal age. Provably fair crash games are one of the latest additions to iGaming libraries. The Aviator title is listed by the likes of Betano, famed for its simple game mechanics which require little to no classic casino knowledge to get started.
Crash games like these are just one example of how iGaming sites are looking to broaden their player base. Another subsector of iGaming that’s on the rise is live casino gaming. Live dealer casino games are designed to offer a new layer of immersivity, transporting you to virtual casino studios via high-definition (HD) quality real-time broadcasts.
For those who cannot or have never considered venturing to a land-based casino, live casino games are the closest thing to a real-life casino experience. With broadband connectivity fast becoming the norm for residential properties in Nigeria, players can interact with the dealer via the chat box, as well as the other human players active at the table. While the most popular live casino games surround classic casino options like blackjack, roulette and baccarat, there’s a new wave of live dealer games beginning to thrive.
Like crash games, live dealer game shows are successfully dumbing down the casino gaming experience. These wheel-based games aim to replicate a TV-style gameshow environment, with little to no requirement for experience or strategy to prevail.
Well-rounded market growth with work to do for established brands
In its closing remarks within its H1 2024 report, Blask said that, although some Nigeria-friendly iGaming operators experienced a fall in eGGR and market share in the opening six months of the year, the overall market revenue rose strongly. Blask believes this is an encouraging sign, one which indicates the market is powered by a diverse choice of iGaming operators as opposed to being driven by a small monopoly of brands.
Blask’s comments suggested that some of the most established Nigerian iGaming operators found it harder to acquire new players than others, despite the market growth. All of which suggests new entrants to the market are offering a competitive alternative, forcing the leading brands to up their game.
Modupe Gbadeyanka