By Norman Ondego
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.
iGaming is any kind of gambling conducted on the internet.
However, navigating this complex terrain requires a keen understanding of local markets, strategic partnerships and adaptable technological solutions.
Identifying untapped regions: A strategic approach
“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?" This foundational question helps determine the viability of entering a new market.
Beyond demand, one has to evaluate 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. 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. If you're a new player, you have the advantage of trying something new and potentially gaining a first-mover advantage. 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, a resistance to change 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.
For example, betting news site SportsBoom.com. An example of a strategy for this company, would be to transition 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. 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.
Navigating regulatory complexities
Regulatory complexities in untapped regions can pose significant challenges, especially in markets where iGaming is still in its early stages. Prior research and collaboration with local stakeholders is important.
The easiest way to navigate regulation and legal frameworks is not to reinvent the wheel, unless you're introducing a breakthrough innovations. Instead, aligning with existing regulations and working closely with local experts can prevent potential pitfalls.
In underdeveloped regions, mobile technology serves as a gateway to online services, including iGaming.
The mobile phone is your access device, your news screen, your payment platform, your communication and entertainment unit. It's in almost every hand. By offering mobile-accessible solutions, companies can effectively address advertising, payment processing, and distribution challenges in these regions.
Digital literacy is essential for the widespread adoption of iGaming, yet it remains a challenge in many untapped regions. iGaming's potential is often hindered by its perception as a vice.
If regulators and governments recognised the industry's potential, they would involve stakeholders in programs that promote digital literacy. 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.
A modular and flexible approach is advised. Being modular and flexible in your approach is key. Entry into any region must follow strategic planning, including the dimensioning of the solution. Localisation, 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. One-size-fits-all solutions may be cheap to deploy, but they don't always work. Instead, modular solutions allow for customisation without compromising the overall integrity of the product.
Looking ahead, there is vast potential in Africa's untapped regions, not just in terms of market penetration, but in the development of localised, workable solutions.
A lot of capital flight has occurred because solutions have not been localised. By focusing on creating solutions tailored to the unique needs of each region, the iGaming sector can unlock significant opportunities across the continent.
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.
Norman Ondego, Lead Consultant at Solpro Consulting and Business Development and Partnership Manager at Convex Technologies.
BUSINESS REPORT