Online Lottery - Africa

Africa

Highlights

Revenue in the Online Lottery market is projected to reach US$249.30m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.14%, resulting in a projected market volume of US$335.80m by 2029.
In the Online Lottery market, the number of users is expected to amount to 2.7m users by 2029.
User penetration will be 0.4% in 2024 and is expected to hit 0.5% by 2029.
The average revenue per user (ARPU) is expected to amount to US$116.60.
In global comparison, most revenue will be generated United States (US$4.39bn in 2024).
With a projected rate of 6.5%, the user penetration in the Online Lottery market is highest South Korea.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Online Lottery market in Africa is experiencing significant growth and development due to various factors.

Customer preferences: Customers in Africa are increasingly turning to online lottery platforms for their convenience and accessibility. Online lottery allows customers to participate in lottery games from the comfort of their own homes, eliminating the need to physically visit a lottery retailer. This appeals to customers who are looking for a convenient and hassle-free way to play the lottery. Additionally, online lottery platforms often offer a wider variety of games and bigger jackpots, which further attracts customers.

Trends in the market: One of the key trends in the African online lottery market is the increasing adoption of mobile technology. With the widespread availability of smartphones and affordable data plans, more and more people in Africa are gaining access to the internet. This has opened up new opportunities for online lottery operators to reach a larger customer base. Mobile apps and mobile-friendly websites are being developed to cater to the growing number of mobile users, making it easier for customers to play the lottery on their smartphones. Another trend in the market is the emergence of local online lottery operators. While international lottery operators have traditionally dominated the African market, local operators are now entering the scene. These local operators understand the specific needs and preferences of the African market, allowing them to tailor their offerings accordingly. This localization strategy resonates with customers who prefer to support local businesses and feel a sense of familiarity with the products and services.

Local special circumstances: Africa is a diverse continent with different countries and regions having their own unique characteristics. This diversity is reflected in the online lottery market as well. Some countries have a long history of lottery games and a well-established lottery culture, while others are relatively new to the concept. In countries where lottery is deeply ingrained in the culture, the online lottery market is likely to see faster growth and higher adoption rates. On the other hand, in countries where lottery is still a relatively new concept, online lottery operators may face challenges in educating and attracting customers.

Underlying macroeconomic factors: The growth of the online lottery market in Africa is also influenced by underlying macroeconomic factors. Economic growth, rising disposable incomes, and increasing internet penetration are all contributing to the expansion of the online lottery market. As more people in Africa become financially capable and gain access to the internet, they are more likely to engage in online activities such as playing the lottery. Additionally, the COVID-19 pandemic has accelerated the shift towards online platforms across various industries, including the lottery. The need for social distancing and restrictions on physical gatherings have pushed more customers towards online lottery platforms as a safer alternative. In conclusion, the Online Lottery market in Africa is experiencing growth and development driven by customer preferences for convenience and accessibility, the adoption of mobile technology, the emergence of local operators, local special circumstances, and underlying macroeconomic factors. As these factors continue to evolve and interact with each other, the online lottery market in Africa is expected to further expand in the coming years.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Gambling Revenue (GGR) and represent what consumers pay for these products and services.

Modeling approach:

Market size is determined through a Top-Down 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., the Statista Consumer Insights Global survey), 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 GDP, number of internet users, and internet consumption.

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 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). Data from the Statista Consumer Insights Global survey is reweighted for representativeness.