AN OVERVIEW OF SPORT BETTING IN NIGERIA BMVR VOL 5

2021

AN OVERVIEW OF SPORTS BETTING IN NIGERIA

VICTOR JORSHE
victorebukar@gmail.com

Abstract
Sport betting is a social activity that has grown over the years since the first bet franchise
Nairabet was legalized in 2009. Nigeria is second behind South Africa in the number of
persons who engage in this activity with over 60million youths said to be sport bettors and
the number is projected to reach over 100million in the coming years and the industry is said
to make a return of over $58 million in a year. The reality that Nigeria is a country with a
huge football culture has made sport betting prominent and has snowballed into a
humongous market with huge financial turnover for the sport betting franchises and the
bettors who play for different reasons such as for monetary rewards, entertainment and so
on. Furthermore, the sport betting franchises have not just amassed wealth from the bettors
but they have contributed to the economy through partnerships, sponsorships and
employment. The betting companies in Nigeria are regulated by the National Lottery
Commission backed by National Lottery Act 2005. Just like other sectors within any given
society, the sport betting industry is faced with her own challenges such as underage
gambling, regulations, gambling addiction amongst others. There are majorly negative
perception and attitudes towards sport betting despite the financial viability of the industry
and this negative perceptions stems from the cultural, religious and value system of the
country. However, the industry is said not to be adequately regulated by the government
which will have the government generate a lot of taxes from this cash-cow like is available in
the UK and this study urges the government to draw up a balanced blueprint to ensure
maximum generation. Conclusively, the sport betting industry is undoubtedly prominent, a
magnificent revenue generator and will continue to increase astronomically.

Keywords: Sports Betting, Nigeria, Youth, Gambling

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INTRODUCTION

Sports betting just like social media have become ubiquitous and popular in Nigeria and
amongst Nigerians especially the youths. It is commonplace to see bet shops litter a given area
in the country. These bet shops represent different bet brands and they are the Mecca of
activities as people visit to place their bets. According to Aguocha and George (2020) gambling
has always existed in Nigeria but in the past it was viewed as an antisocial activity and was
actively discouraged by the church, which warned against the quest for quick wealth. In the late
1990s, in Chapter 22, section 236 of the Criminal Code Act, the Nigerian government legalized
certain forms of gambling in an attempt to generate tax revenues and this has made gambling
more acceptable to the public, especially to the under aged. Sport betting is considered as a
form of gambling which is very popular in the present day Nigeria alongside the slot machines
and the lottery. The Nigerian sports betting and gaming industry has grown astronomically in
the last two years. This exceptional growth can be attributed to the large population especially
the number of youths, increased access to digital telephones, successful internet penetration
and increased access to internet-enabled devices which includes telephones, ipads and other
portable devices.

EVOLUTION

Nairabet was Nigeria's first domestic online sports betting site, which boasts well over 100,000
customers. Sportbetting blog mentions that Nairabet is the first sport betting company to be
legalized and regulated in Nigeria placing her year of existence at 2009. They assert that
Nairabet was not the first have people place their bets on football games ascribing that status
to a now defunct betting brand in “Baba Germany” which was located in the Ebutte Metta area
of Lagos state. It offered sports and live betting and the option to play casino games. Since the
founding of Nairabet, several other sport betting brands have been established while some
others which have their headquarters outside the shores of the country have set up their
companies in Nigeria taking maximum advantage of the fact that the nation is teeming with
youths who have a craze for sports. Sport betting in Nigeria is beyond just predicting football
match outcomes but also for other sports and virtual games.

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There are over 60 betting companies present in Nigeria and over 60 million Nigerians who
engage in sport betting making the nation the second largest gambling/sport betting market
behind South Africa (Business Day, 2018). There are also some that folded up such as Irokobet
and Betwin9ja (Adebukola, 2020). Izuchukwu (2020) ranked the top ten best sport betting
brands in Nigeria based on their website outlook, nature of operations, winning bonuses and
duration of cashout. The rankings were as follows:

1. Bet9ja

2. 1xBet

3. SportyBet

4. NairaBet

5. Melbet

6. 22 Bet

7. BetKing

8. SportPesa

9. Bet365

10. MerryBet

In terms of regulation, sport betting like other forms of gambling is licensed and regulated by
the National Lottery Commission. A lottery license is said to be in the range of N10 to 20
million and from time to time this body evaluates the activities of the sport betting industry
and also mete out punishment in the forms of fines to erring companies.

Gambling in Nigeria is regulated by the National Lottery Regulatory Commission. The National Lottery
was legalized in Nigeria in 2005, under the National Lottery Act 2005. The law distinguishes 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, whereas roulette, dice games and non-skilled card

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games are considered illegal. There is no specific provision in the law to regulate online gambling. The
minimum legal age to be able to gamble in Nigeria is 18 years ( Aguocha and George 2020).

Obtaining a gaming license in Nigeria requires approval from several operators. The main operators are
the Nigerian Investment Promotion Commission (NIPC), Special Control Unit against Money Laundering
(SCUML), and the National Office for Technology Acquisition and Promotion (NOTAP). Some operators
are also required to secure a Capital Importation Certificate, and liaise with the Federal Inland Revenue
Service (FIRS) to get a Tax Identification Number and register for Value Added Tax (VAT). Operators
should ensure they comply with the laws with regards to which games they offer. Only games that
comply with Section 57 of the Nigerian National Lottery Act can be offered legally, which include
lotteries, sports betting / pools and bricks and mortar casinos.

On the state level, the Lagos State Lotteries Board (LSLB) has issued over 40 licenses to operators (LSLB,
2017). The board has started to implement measures to strengthen the regulatory framework through
increased transparency. These measures include providing and updating their data to include operators
whose licenses have been suspended. Other states are also realizing the revenue potential of the
gaming industry.

With regards to financial turnover, in the year 2018 alone, the sport betting industry was said
to have generated $58 million and the number kept rising over the years. The Covid pandemic
which ravished the world and dwindled economies and emaciated several industries in Nigeria
and around the world did not greatly affect the sport betting industry in Nigeria as people still
place bets during the lockdown and this translated into heavy incomes generated. During the
period, it was reported that Bet9ja raked in a total of $10million in a month in the year 2020
that generally characterized with the Corona virus.

There are different motivations for which people engage in sport betting. In a study by
Njemanze et al (2020) in which 385 respondents were surveyed, discovered from their
responses that a total of 269 placed bets for monetary rewards, 44 identified their motivation
as entertainment, 23 placed bets in order to escape boredom, 27 peer pressure while 22
indicated other reasons. The respondents in the aforementioned study however represents
what happens in the larger society as majority of youths place bets because of the financial
rewards that is attached to it.

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CONTRIBUTION(s)

Sport Betting in Nigeria has evolved over the years and has over the years contributed
immensely to the Nigerian society across several areas. According to the Nigerian Inter-Bank
Settlement System (NIBSS) in 2017, the web pay from the sport betting industry was worth
N132million naira. In the area of partnerships and sponsorships, the sport betting industry has
not been found defaulting in these areas as brands such as Bet9ja were the lead sponsors of
the Nigerian National League (the second tier of league football in Nigeria) from 2017 till early
2019. They also hosted Nigeria’s foremost reality show Big Brother Naija in 2019 (Pepper Dem
edition). 1xBet are also partners of the League Management Company (LMC) a body that
oversees the premier league in Nigeria as well as the Nigerian Football Federation which
oversees football activities in Nigeria. In terms of employment, the sport betting industry is
responsible for the employment of over 40,000 persons in the country alone. They have also
contributed in enormous quantities to the income of bettors with the monetary rewards they
dish out to those who have correctly predicted match outcomes.

CHALLENGES

Despite the acceptance, adulation and financial generation enjoyed by the sport betting
industry, it has not been bereft of challenges like other industries in the country. These
challenges are highlighted by Adepoju (2017) who stated that challenges such as gambling
addiction, underage gambling, and unease to operate and regulations befall the sport betting
industry. According to him, the advent of sport betting has led to the increase in gambling
addiction as it very common to see people beg for money just to place bets as against using
such monies to feed and also people who have monies to place bets but not to take care of
their families.

There is also the menace of underage gambling which is against the laws of Nigeria. The laws
state vividly that persons under the age of 18 are not legally eligible to place bets but that has
only worked on paper as school children are now in the habits of placing bets and some cases,
becoming more frequent at it than the adults who are eligible to partake according to the law.

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Several campaigns have been run by the government and by sport betting brands to kick or
stamp out under age betting but how effective have they been? In spite of the laws regulating
gambling in Nigeria, about 57.2% of school-age children have gambled at least once in their lifetime and
77.6% of these have gambled in the past year, with 58.3% reporting unfettered access to gambling dens.

Due to the nature of doing business in Nigeria, betting startups interviewed by Adepoju
mentioned that it was not easy setting up their brands due to the bureaucracy involved in
getting a license and even the cost of the license was also a challenge.

Regulation(s) of the industry is also another challenge as majority of the sport betting executive
interviewed mentioned that sometimes, the laws are not clearly spelt out and they do not
concord with present-day realities. Some of the interviewees say they cannot make decisions in
emergencies because every new step to be taken by the company must have the regulatory
commission first briefed.

REALITIES

According to the survey report released by NOIPolls (2017), gambling and betting is fast
becoming very popular in Nigeria, particularly amongst the country’s bulging youth population
and sports fans. A significant proportion of Nigerians polled (77 percent) attested to the high
prevalence of betting and gambling in their locality; particularly amongst respondents in the
South-West (92 percent) and South-South (91 percent) geo-political zones which recorded the
highest prevalence. Also, the top four betting platforms identified by Nigerians are: Bet9ja (64
percent), Nairabet (34 percent), Pool (22 percent) and Lotto (20 percent). In the same vein,
betting has become a growing trend amongst young Nigerians aged between 18 – 35 years,
who accounted for the highest proportion of Nigerians who engage in the practice. Nigerian
youth especially undergraduates are engaging themselves in gambling as a means of surviving;
this is an intricate issue of special concern as this behaviour may predispose them to
pathological/compulsive gambling (Oyebisi, Alao, & Popoola, 2012).

There are too many overlaps between state and federal laws and many foreign investors have
described the legislation as convoluted. Federal law makes no reference to internet gaming at

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all! State legislatures should begin developing robust regulatory regimes for legal sports betting
that emphasize compliance, market competitiveness, and cooperation among all stakeholders.

A report on gambling in Africa published in 2016 by KPMG reeled out some startling numbers
on the sports betting industry in Nigeria. As at 2016, the leading sports betting company,

“Bet9ja rakes in an average monthly turnover of $10m while the number 2 player behind
Bet9ja, NairaBet makes an average turnover of $3m-$5m, a 20-30% margin on profit”.

The sports betting industry has been able to leverage on Nigeria’s huge football culture. Some
of the big leagues, such as the English Premier league, and the Spanish La Liga, have millions of
fans in the country and betting provides Nigerians the opportunity to earn from what they love.
Betting houses can now be spotted in almost every street in Lagos with new ones propping up
daily, with subscribers in store and online daily.

In addition, Business Monitor International (BMI) research forecasts 182 million mobile
subscribers in 2021, from the current 153 million. The expectation is that as the number of
internet subscribers increase, so will the number of gaming users. Also, according to a recent
investigation by the organization, it was discovered:

“60 million Nigerians between the ages of 18 and 40 are involved in active sports betting. On
average, these punters spend around 3,000 Naira (about $15) every day on bets which
amounts to almost 2 billion naira spent on sports betting daily in Nigeria, which is nearly 730
billion Naira a year!”.

There is been wide spread report of addiction and chronic betting behaviour which has been
reported in the press and also affirmed by academic researches.

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In Bankole’s (2019) study on PATTERNS AND PREVALENCE OF GAMBLING BEHAVIOUR
AMONG YOUTHS IN SOUTH-WEST NIGERIA: A CASE STUDY OF YOUTHS IN OYO AND EKITI
STATE, he discovered that sport betting (football, table tennis, basketball) on Bet Naija, Naira
bet, Merry bet, Sure bet etc; among others is the most popular form of gambling, followed by
lottery which include baba ijebu, lotto. Which goes to imply that majority of youths are sport
conscious and that they engage and show interest in sport activities and develop strong
attachment to the sport club that they preferred otherwise known as ‘Fanship’ and in order to
show their strong believe and support to the sport club they fervour, they place bet on the
prediction of outcome of the sport activities. Furthermore, the study also discovered that
gambling has been traditionally related with gender. This sex difference is also evident in sport
betting as gender has also been reported as an important determinant of gambling behaviour.
The female generally have been reported to participate less in gambling related activities (sport
betting) when compared to their male counterparts.

It is increasingly important to educate and guide our youth on the issue of gambling. More and
more youths see sports betting as their ‘way out’ of hardship and this desperation often leads
to debt. Considering the level of the industry’s growth in Nigeria, and Nigeria’s already high
rate of poverty, the government must ensure we do not mortgage our future [the youth]. This
is need for proper regulation of the industry, as policies of checks and balances have to be in
place.

Sports’ betting is prevalent in most areas in Nigeria and seen as a source of entertainment to
many. Individuals may feel pressured to take part in the activity without knowing the negative
effects. There is a reason the slogan ‘Gamble Responsibly’ is used globally and Nigeria should
take note. Nigeria does not have many support organisations that deal with gambling
addictions such as BeGambleAware in the UK. Citizens are at risk of being vulnerable to the
betting industry with no way out and usually no one to talk to about it.

As it concerns futuristic projections according to Web Overview on Sports Betting(2020), it is

believed by the industry operators that as the numbers of internet subscribers keep increasing,

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so will the number of game users, and there may be the need for mergers and acquisitions of
fragmented small players in the industry.
“The growing Nigerian gaming industry is fragmented, with many small players. As user
behavior changes and spending needs increase, the industry could be forced to consolidate,
in line with global trends”.
In the UK, a report by Ernst and Young which was commissioned by BGC claims that the betting
shops, casinos and the online gaming sector contributed a total of 7.7billion ($10.6billion) to
the UK economy in 2019 and 4.5billion in taxes and also supported a total of 119,000 jobs in
the same year. The stats is also the same in the sport betting sector in the US and all across the
world although they also battle gambling addiction and other related issues.

PERCEPTION

In a study by Njemanze et al (2020) on the Public Perception and the Socio-economic Effects of
Sports Betting on Youths in Ibadan, a cross section of stakeholders, bettors’ relatives and
workers in the area were engaged in in-depth interviews and the results indicate that there
exists a negative perception of sports betting amongst persons in the area. Data from their
study depicted a negative public perception of sports betting despite its legalization in Nigeria.
Culturally, sport betting is incompatible with the Nigeria normative culture; as youth
engagement in sports betting is publicly viewed as idle living.
It presents value conflict to the country’s value of hard work as the means to greatness. Sport
betting is also perceived as a venture that encourages greed, indecency, bankruptcy,
joblessness, inability to provide for their family and crime despite the fact that it contributes
immensely to the economy. Religious wise, the popular religions in the country speak against it
and therefore discourage their members not to partake in sport betting labeling it as a “sinful
venture”.

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CONCLUSION
There are the good and bad sides to everything on earth which also applies to sports betting.
Studies have focused a lot on the negative sides to sport betting and leave little to be desired
when it comes to researching about the huge benefits and contributions of the industry to the
Nigerian economy. Gambling addiction and other related issues that associate with sport
betting cannot be overlooked but it is only important that the discuss or focus is balanced as
against the pendulum swinging more towards the negative than positive. The sport betting
industry in Nigeria has come to stay and will drastically keep growing and will also remain
prominent amongst the youths for whatever purpose to which they choose to place bets.
Coupled with the fact that these bets can be placed online in the present world of technology
and technological advancement, sports will always remains a force amongst young persons in
Nigeria. Instead of castigate the industry; the government can seek more viable ways to
generate revenue from this cash-cow called sports betting.

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References
Adebukola, P. (2020). 37 Bet companies in Nigeria. Retrieved on June 27, 2021 from
www.eaglepredict.com.
Adepoju, P. (2017). Challenges of Sports Betting in Nigeria. Retrieved on June 27, 2021 from
www.ventureburn.com.
Aguocha, C. M. & Sanju, G. (2020). An overview of gambling in Nigeria. Special Paper. Creative
Commons Attribution License (http://creativecommons.org/ licenses/by/4.0/).

Bankole, E. T. (2019). PATTERNS AND PREVALENCE OF GAMBLING BEHAVIOUR AMONG YOUTHS IN

SOUTH-WEST NIGERIA: A CASE STUDY OF YOUTHS IN OYO AND EKITI STATE. British Journal of
Research. Vol 7 (2) pp 22-46.

Business Day (2018). Economic value of Sport Betting in Nigeria.

Izuchukwu, F. (2020). Top 10 Sport Betting Companies in Nigeria. Retrieved on June 27, 2021
from www.clacified.com
Njemanze V. C., Nwokporo E. I., Agha, E. O. & Nwosu, I. A. (2020). Public Perception and the Socio-
economic Effects of Sports Betting on Youths in Ibadan. Enugu State University of Science and
Technology Journal of Social Sciences and Humanities. Vol 5(1)

Sportbetting blog (2020). Sport Betting in Nigeria. Retrieved on June 27, 2021 from
www.sportbettingblog.com
Web Overview on Sports Betting (2020). Retrieved on June 27, 2021 from the www.web-
overview-on-sports-betting

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