Online Sports Betting - Nigeria | Statista Market Forecast

Revenue in the Online Sports Betting market is projected to reach US$294.20m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.92%, resulting in a projected market volume of US$384.50m by 2028.
In the Online Sports Betting market, the number of users is expected to amount to 1.3m users by 2028.
User penetration will be 0.5% in 2024 and is expected to hit 0.5% by 2028.
The average revenue per user (ARPU) is expected to amount to US$279.60.
In global comparison, most revenue will be generated Australia (US$9.76bn in 2024).
With a projected rate of 48.9%, the user penetration in the Online Sports Betting market is highest Canada.

Definition:

The online sports betting market refers to the segment of the online gambling industry that involves placing bets on various sports events over the internet. This includes a wide range of sports, such as football, basketball, baseball, horse racing, tennis, and many others. Online sports betting allows customers to place bets on the outcome of sporting events in real-time, either before or during the event. These bets can be placed through various online platforms, including websites and mobile apps, which are often operated by licensed online sportsbook operators.

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 sports betting on various sports such as football, basketball, tennis, cricket, golf, etc.
Esports betting on sports simulation games such as FIFA, NBA 2K, and Madden NFL
Proposition betting on specific events or outcomes in a sports game

Offline or land-based sports betting establishments such as sportsbooks and race tracks
Betting on non-sporting events such as politics, entertainment, and reality TV shows
Illegal or unlicensed online sports betting websites or apps.

The Online Sports Betting market in Nigeria has experienced significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Nigerian customers have shown a growing interest in online sports betting due to its convenience and accessibility. With the increasing penetration of smartphones and internet connectivity, more people have access to online platforms, allowing them to easily place bets on their favorite sports teams and events. Additionally, the rise of social media and online influencers has also contributed to the popularity of online sports betting, as customers are exposed to various promotions and offers through these channels.

Trends in the market: One of the key trends in the Nigerian online sports betting market is the emergence of local and international betting platforms. Local platforms have gained popularity by offering localized content, such as local sports events and teams, while international platforms provide a wider range of betting options on global sports events. This trend has created a competitive landscape in the market, with platforms vying for customers by offering attractive odds, bonuses, and promotions. Another trend in the market is the increasing popularity of live betting. Customers are now able to place bets in real-time while watching sports events, adding an element of excitement and engagement to the betting experience. This trend has been facilitated by advancements in technology and improved internet speeds, allowing for seamless live streaming and instant updates on match statistics.

Local special circumstances: Nigeria's large and youthful population has played a significant role in the growth of the online sports betting market. With a high percentage of the population below the age of 35, there is a strong demand for entertainment and recreational activities, including sports betting. Additionally, the passion for football in Nigeria, with its successful national team and popular local leagues, has further fueled the interest in online sports betting.

Underlying macroeconomic factors: The Nigerian economy has experienced steady growth in recent years, leading to an increase in disposable income among the population. This has allowed more individuals to participate in online sports betting and allocate a portion of their income towards this form of entertainment. Furthermore, the informal nature of the Nigerian economy has also contributed to the growth of the online sports betting market, as individuals seek alternative sources of income and view sports betting as a potential opportunity. In conclusion, the Online Sports Betting market in Nigeria has witnessed significant growth due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. With the increasing accessibility of online platforms, the popularity of live betting, and the passion for football in the country, the market is likely to continue its upward trajectory 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. 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.

Sports betting is a type of gambling that refers to the activity of placing a wager on the outcome of a sporting event. Events on which wagers are made could be anything from more traditional activities like horse or dog racing to sports such as soccer and American football. Bets are typically made through bookmakers, also known as sportsbooks. These operate both as land-based establishments, for example, at casinos or betting shops, and online. The total amount of money wagered by bettors is known as a handle, while the amount of money earned by a sportsbook after paying out the winners is revenue. In 2022, the sports betting and lottery market size worldwide amounted to 235.46 billion U.S. dollars.