Online Casinos - Nigeria | Statista Market Forecast

Revenue in the Online Casinos market is projected to reach US$254.50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.34%, resulting in a projected market volume of US$325.40m by 2028.
In the Online Casinos market, the number of users is expected to amount to 1.7m users by 2028.
User penetration will be 0.5% in 2024 and is expected to hit 0.7% by 2028.
The average revenue per user (ARPU) is expected to amount to US$206.00.
In global comparison, most revenue will be generated United States (US$7.64bn in 2024).
With a projected rate of 35.7%, the user penetration in the Online Casinos market is highest Canada.

Definition:

The online casinos market refers to the segment of the online gambling industry that offers a range of traditional casino games, such as blackjack, roulette, baccarat, and slot machines, that can be played over the internet. Online casinos provide customers with the opportunity to play these games from the comfort of their own homes or on the go through various devices, including computers, tablets, and smartphones.

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 the product shares of the total online casino market. User and revenue figures represent B2C services.

Online slot machines such as Starburst, Mega Moolah, and Gonzo's Quest
Online card games such as poker, blackjack, baccarat, and their variants
Online roulette games such as European, American, and French roulette

Offline or land-based casino establishments such as casinos and gaming halls
Skill-based games such as chess, backgammon, and Go
Betting on non-casino games such as sports, politics, and entertainment.

The Online Casinos market in Nigeria has been experiencing significant growth in recent years, driven by changing customer preferences and favorable local circumstances.

Customer preferences: Nigerian customers are increasingly turning to online casinos for their entertainment and gambling needs. This shift in preference can be attributed to several factors. Firstly, the convenience of online casinos allows customers to access a wide range of games from the comfort of their own homes or on-the-go through mobile devices. This accessibility is particularly appealing to the younger generation who are tech-savvy and value convenience. Secondly, online casinos offer a wide variety of games, including traditional casino games such as poker, blackjack, and roulette, as well as innovative and immersive slot games. This variety caters to the diverse preferences of Nigerian customers and ensures that there is something for everyone. Lastly, online casinos often provide attractive bonuses and promotions, which further incentivize customers to choose this form of gambling over traditional brick-and-mortar casinos.

Trends in the market: One of the key trends in the Nigerian online casinos market is the increasing popularity of live dealer games. These games provide a more immersive and interactive experience for customers, as they can play against real dealers in real-time. The advancement of technology, such as high-quality video streaming and improved internet connectivity, has made live dealer games more accessible and enjoyable for Nigerian customers. Another trend in the market is the rise of mobile gambling. With the widespread use of smartphones in Nigeria, online casinos have developed mobile-friendly platforms and apps to cater to the growing demand for mobile gambling. This trend is expected to continue as mobile penetration and internet access in Nigeria continue to increase.

Local special circumstances: Nigeria has a large and youthful population, with a significant portion of the population under the age of 30. This demographic is more inclined towards online entertainment and gambling, making Nigeria an attractive market for online casinos. Additionally, Nigeria has a relatively high internet penetration rate, which provides a strong foundation for the growth of online casinos. The country also has a growing middle class with disposable income, which further fuels the demand for online gambling and entertainment options.

Underlying macroeconomic factors: The Nigerian economy has been experiencing steady growth in recent years, which has contributed to the increasing disposable income and consumer spending. This economic stability provides a favorable environment for the growth of the online casinos market. Furthermore, the government of Nigeria has taken steps to regulate and legalize online gambling, which has instilled confidence in both operators and customers. This regulatory framework ensures a level playing field and protects the rights of customers, further driving the growth of the online casinos market in Nigeria. In conclusion, the Online Casinos market in Nigeria is experiencing significant growth due to changing customer preferences, favorable local circumstances, and underlying macroeconomic factors. The convenience of online casinos, the variety of games offered, and attractive bonuses and promotions are appealing to Nigerian customers. The increasing popularity of live dealer games and mobile gambling are also driving the growth of the market. Nigeria's large and youthful population, high internet penetration rate, and growing middle class contribute to the country's attractiveness as a market for online casinos. The steady economic growth and government regulations further support the development of the online casinos market in Nigeria.

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. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies, and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, the urban population, the usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Digital market, in a PDF format.

As an industry seemingly built on chance, the odds of the global casino sector growing in the coming years appear a safe bet. Thanks to the ongoing legalization of gambling-related activities in many parts of the world, licensed casinos have expanded to new markets and generated record-breaking revenue figures. While the market size of the casino and online gambling industry suffered heavily during the coronavirus (COVID-19) pandemic, falling by nearly 100 billion U.S. dollars in 2020, the recovery has been steady. As of 2024, the industry’s market size totaled over billion U.S. dollars. At the center of this growth has been leading casino companies such as MGM Resorts, which alone generated 16.16 billion U.S. dollars in revenue in 2023. Online enterprises specializing in sports betting have also carved out significant chunks of the market share, with Fanduel and DraftKings both ranking as two of the most valuable gambling brands globally in 2024.