STARTING ONLINE SPORTS BETTING AND GAMBLING BUSINESS IN NIGERIA

 

STARTING ONLINE SPORTS BETTING AND GAMBLING BUSINESS IN NIGERIA

Nigeria is one of the several African countries participating in the online sports betting epidemic. This includes online poker, casino games, and betting on sports. In the last two years, the Nigerian sports betting and gaming industry has grown astronomically.

Nairabet was Nigeria's first online domestic sports betting platform. Since its existence, there have been many more gambling sites, as Bet9ja, BetKing, MerryBet, SureBet, etc. In Nigeria.

The country's huge population and increased access to internet devices can be attributed to betting's exceptional growth.

The National Lottery Regulatory Commission shall decide all forms of gambling in Nigeria, including sports betting. Lottering was legalized under the National Lottery Act, 2005, and the Chapter 22 Criminal Code Act, passed in 1990, is defined for gambling. It is important to note that all forms of play are limited to all Nigerian citizens under 18.

A body known as the Lagos State Lotteries Board (LSLB) has been set up. LSLB was created by the Lagos State Lotteries Laws Cap L89 2004 and is responsible for regulating lotteries, sports betting, scratch card & electronic games, casino operations, gaming machines operations, betting pools, promotions, and other gaming operations within the Lagos State.

Sports betting in Nigeria is a highly profitable business. About 60 million Nigerians between 18 and 40 years of age participate in active sports betting. These punters, on average, spend around 3,000 Plus Naira each day on betting. Sports betting gives Nigeria soccer fans the chance to make money from what they love. Sport betting shops can now be found in almost every street in Lagos in 2019, with new shops being supplied every day.

A leading study released by KPMG in 2016 on Gambling in Africa exposed some offensive numbers in the sports betting industry in Nigeria. The leading Nigerian sports betting firm, Bet9ja, generated an average monthly revenue of $10 million in 2016. NairaBet, second in the sector, generates an average turnover of $3 m to $5 m, with a profit margin of 20-30 percent.

Steps to create sports betting business in Nigeria.

1)REGISTRATION

Registration is essential to any company in any field. Registration is critical. You must legally register your business to start a sports betting company in Nigeria.

To register your company name, go to the nearest Corporate Affairs Commission (CAC) office in your state. It should usually take two or more weeks to be accepted. This helps you to create a company bank account and file your taxpayer ID.

2)LICENSING

This is another step towards setting up a sports betting company in Nigeria. Sports betting in Nigeria, as in any other sector, involve licenses and are controlled by somebody. The NLC is responsible for regulating all companies involved in sports betting in Nigeria. If you're in Lagos State, it's also a must for the Lagos State Lottery Board to obtain another license. You will need more than 5 million naira for these 2 phases alone to complete registration and licensing.

But if you don't have this number, register with another sports betting company in Nigeria is the best thing. This is called a franchise. By registering with a sports betting company, a license is not required again. You may also use the logo, prestige, name, and software of the organization.

In Nigeria, you can register various sports betting firms under such things as Betnaija, Nairabet, Surebet, Supabet, etc.

And if you have a franchise fee to pay for registration. Depending on your revenue and the business you register with, you can also earn a commission fee.

3)RENTING OF OFFICE SPACE

Before your business can be approved and licensed, you must have your office's physical address for the regulatory authorities. The office can accommodate at least 100 staff up to standard and wide. You should also consider the office location before you rent any room. It should be near the destination of your audience. For example, maybe near a soccer field or arena or even on a busy road. The physical office is important to position bets, lodge grievances, and demand their money for punters (people making a bet).

4)OFFICIAL WEBSITES

For this company, a website is a required tool. Sports betting must not only be put in a physical location in Nigeria. A website should be available with the latest technology level to present your company and where punters can make a bet. When designing an official website for your business, make sure that it is mostly compatible with mobile phones. You may also use sleek and stylish templates on your website.

5)PAYMENT GATEWAY

This is also critical in establishing the sports betting sector in Nigeria. There is no way to put a bet without a payment gateway. Make sure your payment gateway is stable and reliable. Also, have numerous punter payment options. It would be best if you talked to your website designer about this.

6)FRANCHISE OUTLETS

The various outlets are one of the tactics used by sports betting companies in Nigeria. To ensure profitability, you need to build a range of outlets in various areas and cities. If you do not have the resources to open an additional outlet yet, you can be strategic by ensuring your physical location is right. Equipment such as computers, UPS, equipment (chairs, desks, and noticeboard), printers, and TV sets are just what you need for any franchise outlet to purchase.

PROMOTIONS

 One of the errors most entrepreneurs make is not to promote their company until they have invested fortunes. You have to invest some money to promote your business. You can sponsor social media advertising, sponsor TV and radio shows, make fliers and billboards to raise awareness. 

Sports Betting is a highly lucrative industry with many prospects in Nigeria. It certainly yields good returns with good experience, skills, and resources.