Nigeria leads Africa in online gambling regulation as illegal market hits $17.8bn

Nigeria has taken the lead among African nations in regulating its online gambling sector, despite the continued dominance of illegal operators in the continent's rapidly expanding betting industry, according to a recent report by Gaming Compliance International (GCI). The study, which marks the first comprehensive analysis of online gambling across all 54 African countries, indicates that the total Gross Gaming Revenue (GGR) from online gambling on the continent reached $23 billion in 2025. However, only $5.2 billion, approximately 23 percent of this amount, came from legally licensed operators, while the remaining $17.8 billion, or 77 percent, was generated through unregulated platforms. The report highlights a growing trend in West Africa, where online gambling revenue surged to $4.8 billion in 2025, compared to $4.3 billion in 2024. In this sub-region, licensed operators accounted for $1.5 billion, or 31 percent of the total, while unlicensed platforms controlled $3.3 billion, representing 69 percent of the market. Nigeria stood out as the top performer in terms of regulatory effectiveness within West Africa, with only 56 percent of its online gambling activity being unregulated. This is significantly lower than the regional average of 69 percent and the continental average of 77 percent. Across Africa, the number of individuals participating in online gambling climbed from 198 million in 2024 to 215 million in 2025, accounting for 14 percent of the continent’s population. This surge reflects the increasing accessibility of digital betting platforms and the growing reliance on mobile technology for entertainment and financial transactions. Despite these developments, the report estimates that illegal gambling operations cost African governments approximately $3.55 billion in lost tax revenue in 2025. Additionally, the number of unlicensed gambling websites targeting African users rose sharply, reaching 4,129 in 2025 from 3,644 in 2024. The GCI report underscores the urgent need for stronger regulatory frameworks across the continent. According to Matt Holt, CEO of GCI, the findings offer regulators a critical benchmark to enhance oversight mechanisms, improve enforcement strategies, and better protect consumers from the risks associated with unregulated gambling. Holt emphasized that such measures could help create a more transparent and sustainable gambling environment. Ismail Vali, president of GCI, urged African governments to prioritize the development of competitive and well-regulated gambling markets. He argued that doing so would incentivize consumers to support licensed operators, thereby boosting public revenues and attracting foreign investment into the sector. Vali noted that effective regulation could also reduce the prevalence of illicit gambling activities and mitigate their negative social and economic impacts. The report comes amid rising concerns over the proliferation of unlicensed gambling sites operating under the radar. These platforms often exploit weak legal frameworks and limited enforcement capabilities to thrive. Many operate from jurisdictions outside the continent, making them difficult to track and regulate. As a result, they contribute to widespread issues such as problem gambling, financial fraud, and money laundering. Authorities in several African countries have begun addressing these challenges by implementing stricter licensing requirements and enhancing cross-border cooperation to combat illegal gambling. Nigeria, in particular, has made strides in establishing a robust regulatory framework, including the introduction of clear guidelines for online gaming operators and the establishment of dedicated enforcement agencies. Nevertheless, experts caution that much work remains to be done to fully address the scale of the issue. The GCI findings suggest that while progress is being made, the majority of Africa’s online gambling market continues to operate beyond the reach of formal regulations. With the industry showing no signs of slowing down, the pressure on policymakers to act decisively will only intensify in the coming years.