In recent decades, Nigeria’s economy has been under close scrutiny. Perspectives on its chances of success or failure in the years ahead depend almost entirely on who is being asked. To some, Nigeria is one of the jewels in Africa’s crown: as sub-Saharan Africa’s largest economy, it is certainly doing something right. But to others, it faces long-term structural problems, such as an over-dependence on natural resources.
It’s clear that no one industry or service is a silver bullet for fixing the economic problems that this enormous country of nearly 200 million people experience. But it’s worth exploring the idea that certain industries could inject some life into the economy – and the online casino sector is one such industry. With this sector believed to already have some roots (albeit illicit) in the country’s consumer culture, it’s certainly worth exploring – and that’s what this blog post will do.
The current situation
First off, it’s worth thinking carefully about what the situation currently looks like in Nigeria when it comes to online casinos. The legal framework is quite definitive on the matter. Online casino gambling is banned because Nigerian law only allows for gambling to take place at all in a set of highly specific circumstances, such as in one of just three licensed casino locations.
In terms of actual usage, though, things are a little different. It’s definitely the case that there’s a significant underground online betting scene in the country. Betting sites that are located in Nigeria and cater to Nigeria-based customers do exist, and are commonly accessed by those looking to enjoy a flutter or two. In some ways this is a positive, as it means that those who want to access gambling services can exercise their freedom of choice to do so.
But it is also a fact that regulation is close to non-existent, which puts the unlawful sportsbook or casino provider in the driving seat – and means they are perhaps more likely to consider stealing money from a customer or fail to provide returns that have been won fair and square.
Diversifying the economy
There’s significant evidence that permitting online gambling can actually have a positive effect on the economy of the jurisdiction in question, both in terms of direct economic growth and also indirectly through enhanced public finances. When the federal ban on sports betting in the US was repealed in 2018, for example, several states went down the road of permitting online gambling.
The effects of this were quite substantial. In Pennsylvania, for example, the state’s economy grew significantly once sports betting was legalised. And the specification that a certain portion of revenues had to be routed towards state taxes meant that the funding pool for investment in public services also grew: overall, $5.3 million extra tax revenue was earned for the state’s local government.
For Nigeria, a similar phenomenon could well happen if online casino gambling is legalised. Not only might firms find themselves able to provide regulated, productive economic growth, the country’s government could earn a little through a diversified strand of taxation – reducing its reliance, even if just a little, on current major exports such as oil.
Some, however, would pose a key question: is the demand there? In Nigeria, at least, the answer is almost certainly “yes”. Figures show that around a third of Nigerians – or about 60 million people – who fall into the age bracket between 18 and 40, are choosing to gamble on sports. As analysts on the topic have pointed out, this figure could well be higher – especially if people are not being honest due to concerns over legal or social attitudes to gambling. While sports betting appears to be more legally acceptable than online casino betting, it’s worth noting that the demand for wagering on regulated and responsible sites such as Black Diamond is certainly there – and it’s almost certain that, if online casino gambling were legalised, there would be a considerable number of punters.
In short, there’s no sure-fire way to get an economy to ascend to the next level – especially not when the economy in question is as complex and big as Nigeria’s. But it’s well worth thinking about what certain sectors have to offer in this regard. The online casino industry could well be the boost that Nigeria needs; from its capacity to add to tax revenues to its potential for diversifying the economy, this sector has the potential to bring some transformational energy to the country.
