As Africa’s digital landscape continues to evolve, the iGaming sector stands at the forefront of this transformation, poised to tap into the continent’s untapped regions.
However, navigating this complex terrain requires a keen understanding of local markets, strategic partnerships, and adaptable technological solutions.
Norman Ondego, Lead Consultant at Solpro Consulting and Business Development and Partnership Manager at Convex Technologies shares his expertise on how to successfully expand iGaming into these emerging regions with SportsBoom.
Identifying Untapped Regions: A Strategic Approach
For Norman Ondego, the journey of identifying untapped regions with potential for iGaming expansion begins with a clear understanding of the strategic direction and market demand. “Is there a demand for the service or product? Or is it a case of demand meeting a solution or a solution creating the demand?” he asks. This foundational question helps determine the viability of entering a new market.
Beyond demand, Norman emphasizes the importance of evaluating the supporting ecosystem. “In the iGaming industry, key factors to consider include payment infrastructure, connectivity, and regulatory frameworks. These elements will ultimately dictate the type of solution you offer,” he explains. Additionally, factors such as culture, stability, economic empowerment, accessibility, saturation, and competitive landscape play crucial roles in the decision-making process.
Digital Transformation in Regions with Limited ICT Infrastructure
Digital transformation in regions with limited ICT infrastructure presents both challenges and opportunities. Norman’s approach varies depending on the market entry strategy. “If you’re a new player, you have the advantage of trying something new and potentially gaining a first-mover advantage,” he says. This approach allows for the introduction of solutions that are both easy to use and affordable, providing flexibility to adapt as the market evolves.
For established players entering as alternatives, Norman acknowledges the resistance to change that often accompanies new solutions.
“Your solution must not represent a significant shift from what users are accustomed to. Instead, it should gradually wean them away through convenience, efficiency, and where possible, competitive pricing,” he advises betting news site SportsBoom.com. An example of this strategy is transitioning customers from retail gaming shops to online platforms by initially offering online stations within the retail environment.
The Role of Local Partnerships
Local partnerships are critical when entering new and untapped regions. “Local players hold the key currency of trust and time, which are invaluable to new entrants,” Norman asserts. These partnerships help navigate the cultural and regulatory nuances of the market, providing insights that desktop research cannot reveal. “Local partners understand market dynamics, payment preferences, and user behaviours, making the journey significantly shorter and more successful,” he adds.
Navigating Regulatory Complexities
Regulatory complexities in untapped regions can pose significant challenges, especially in markets where iGaming is still in its early stages. Norman emphasizes the importance of prior research and collaboration with local stakeholders.
“The easiest way to navigate regulation and legal frameworks is not to reinvent the wheel unless you’re introducing a breakthrough innovation,” he advises. Instead, aligning with existing regulations and working closely with local experts can prevent potential pitfalls.
Leveraging Mobile Technology for iGaming Growth
In underdeveloped regions, mobile technology serves as a gateway to online services, including iGaming. Norman highlights the versatility of mobile devices in these markets: “The mobile phone is your access device, your news screen, your payment platform, your communication, and your entertainment unit. It’s in almost every hand,” he notes. By offering mobile-accessible solutions, companies can effectively address advertising, payment processing, and distribution challenges in these regions.
Enhancing Digital Literacy for iGaming Adoption
Digital literacy is essential for the widespread adoption of iGaming, yet it remains a challenge in many untapped regions. Norman points out that iGaming’s potential is often hindered by its perception as a vice. “If regulators and governments recognized the industry’s potential, they would involve stakeholders in programs that promote digital literacy,” he argues. He believes that integrating iGaming into digital literacy initiatives could create a symbiotic relationship where people pay to play and learn simultaneously.
Ensuring that infrastructure and solutions are both sustainable and scalable is also crucial as markets grow. Norman advocates for a modular and flexible approach: “Being modular and flexible in your approach is key. Entry into any region must follow strategic planning, including the dimensioning of the solution,” he advises. Localization, coupled with an understanding of global standards and regulatory frameworks, is essential for creating robust solutions that can scale with market growth.
Aligning Customer Experience with Local Expectations
When entering new markets, aligning the customer experience with local expectations is vital. Norman emphasizes the importance of research and data-driven decision-making, as well as the role of local partnerships. “One-size-fits-all solutions may be cheap to deploy, but they don’t always work,” he warns. Instead, he advocates for modular solutions that allow for customization without compromising the overall integrity of the product.
Looking ahead, Norman sees vast potential in Africa’s untapped regions, not just in terms of market penetration, but in the development of localized, workable solutions. “A lot of capital flight has occurred because solutions have not been localized,” he observes. By focusing on creating solutions tailored to the unique needs of each region, Norman believes that the iGaming sector can unlock significant opportunities across the continent.
In conclusion, Norman Ondego’s insights provide a roadmap for successfully navigating the complexities of expanding iGaming into untapped regions. From strategic market entry and local partnerships to leveraging mobile technology and enhancing digital literacy, his approach underscores the importance of understanding and adapting to the unique dynamics of each market. As Africa’s digital landscape continues to evolve, these strategies will be crucial in unlocking the full potential of the iGaming sector across the continent.
Dipo Olowookere