Esports Betting - Nigeria | Statista Market Forecast

In Nigeria, revenue in the Esports Betting market market is projected to reach US$12.6m in 2024.
This revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 5.68%, leading to a projected market volume of US$16.6m by 2029.
While the United States generates most revenue in this sector, Nigeria's market is also experiencing growth with a projected market volume of US$721.2m in 2024.
The average revenue per user (ARPU) in Nigeria is expected to amount to US$11.9.
Nigeria's burgeoning youth demographic is driving a significant interest in esports betting, positioning the country as a key player in the African gaming market.

Definition:

Esports betting refers to the act of placing wagers on competitive video gaming events. It involves predicting the outcomes of Esports matches or tournaments and placing bets on various aspects, such as the winning team, individual player performances, or specific in-game events. Esports betting has gained significant popularity, with dedicated platforms and bookmakers offering odds and opportunities for enthusiasts to engage in this form of gambling related to the rapidly growing Esports industry.

Additional information:

Data includes revenue figures in Gross Gambling Revenue (GGR), which is the total amount of bets placed by customers minus the amount paid out in winnings, Users, average revenue per user (ARPU), user penetration rate, and a breakdown of revenue shares of the total betting market. User and revenue figures represent B2C services.

Online betting on the outcome of various Esports matches in games such as League of Legends, Dota 2, CS:GO, etc.
Betting on the overall winners of Esports tournaments in games such as the Dota 2 International or the League of Legends World Championship
Betting on specific events or outcomes in an Esports game, such as the first team to score, the number of kills a player will get, or the length of a match

Online betting on non-Esports related sports, such as football or tennis matches
Offline betting on Esports, such as betting in a physical store

The eSports betting market in Nigeria is facing subdued growth due to factors such as limited infrastructure and regulations. Despite the convenience of online betting, slow adoption and low health awareness among consumers contribute to the market's slow growth rate.

Customer preferences: The rise of mobile gaming has led to a significant increase in the popularity of Esports Betting in Nigeria. With a large number of young and tech-savvy individuals in the country, online betting platforms have seen a surge in users. Additionally, the emergence of Esports tournaments and leagues in Nigeria has further fueled the growth of the Esports Betting Market. This shift towards virtual gaming and betting can be attributed to the changing preferences of consumers, who are increasingly seeking convenient and immersive entertainment options.

Trends in the market: In Nigeria, the Esports Betting Market is experiencing a surge in popularity, with an increasing number of online betting platforms offering Esports betting options. This trend is significant as it reflects the growing interest in Esports among Nigerian youth and the potential for the market to expand further. It also presents opportunities for stakeholders such as Esports teams, tournament organizers, and game developers to tap into this market. However, there could also be potential implications for responsible gambling practices and the need for regulatory measures to ensure fair and safe betting practices. Overall, the trajectory of this trend suggests a promising future for the Esports Betting Market in Nigeria.

Local special circumstances: In Nigeria, the Esports Betting Market is growing rapidly due to the country's large youth population and increasing internet and smartphone penetration rates. However, strict gambling laws and religious beliefs have hindered its full potential. In addition, the cultural preference for traditional sports has also limited the growth of the Esports market. Despite these challenges, the market is expected to continue its upward trend, driven by the government's efforts to promote technology and youth development through initiatives such as the National Youth Games.

Underlying macroeconomic factors: The Esports Betting Market within the eSports Market in Nigeria is influenced by macroeconomic factors such as the country's economic stability, government policies, and global economic trends. The Nigerian government has shown support for the growth of the esports industry through initiatives such as the establishment of the Esports Nigeria Federation. Additionally, the country's growing youth population and increasing internet penetration are driving the demand for esports and esports betting. However, challenges such as inconsistent internet connectivity and limited access to banking services in some areas may hinder the market's growth.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Esports betting market, which comprises revenues from online betting on Esports events. All figures are based on net revenues and exclude agency commissions, rebates, and production costs.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.

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The rapidly growing phenomenon surrounding eSports continues to gather steam. The intersection of gaming and sports offers an innovative wave of branding opportunities, engaging content and activations for millions across the world. It therefore comes as no surprise that the size of the global eSports market is expected to increase more than fivefold between 2023 and 2032, reaching a value of over 10 billion U.S. dollars within the next ten years.