The global online gaming industry reached a value of over $196 billion last year. The sub-Saharan African gaming industry is expected to generate over $1 billion for the first time in 2024, according to data from research firm Newzoo with CNBC. A potentially lucrative gaming market has opened up in Nigeria and other parts of Africa.
The Director General of the National Lottery Regulatory Commission, Lanre Gbajabiamila, has seen online gaming emerging as a mainstream source of entertainment for young and old people. The sector’s growth has risen with the increase in smartphone usage and internet penetration. His concern is that the industry is facing the lack of awareness and understanding among policymakers and the general public about the industry’s potential.
He explained that the growth of the gaming industry comes with risks, such as, money laundering which allows criminals to hide their illegally obtained funds by disguising them as legitimate winnings from gambling activities. He also posited that the industry carries the risk of being exploited for money laundering and financing terrorist activities which necessitates the implementation of stringent regulations to combat money laundering while fostering innovation in the gaming sector.
He stressed the need to closely monitor the market dynamics and remain informed about the gaming industry’s current state. “This surge in digitalisation and the globalisation of the industry will both bring opportunities and challenges for the economic development of our nation,” he said. For some experts the industry has been overstating the potential benefits. For them while the estimated economic impact is too optimistic, while the negative impact – including gambling addiction – has been understated.
Both the regulators and operators of online gaming operators agree to the suggestion for an industry-led responsible gaming standard. Other provisions were for a shared responsibility approach to addressing problem gaming and a commitment to employee training and continuously monitoring operators’ respective responsible gaming programmes and initiatives to ensure their compliance with applicable standards.