The Gambling Authority of Botswana recently announced that it will publish invitations for new gaming license applications for betting, bingo, and limited payout machines, before rolling out more casino licenses in the coming years.
The announcement was in line with the Authority’s responsibility of contributing to Botswana’s transformational agenda and socio-economic development by diversifying the gaming industry.
According to Peter Kesitilwe – Acting Chief Executive Officer (CEO) at the Gambling Authority, there is huge potential to develop Botswana’s gambling and gaming industry as it is still nascent.
“The growth of online gaming and betting is a crucial factor pushing the expansion of the worldwide gambling business. As we endeavor to significantly alter Botswana’s gambling industry through safe gaming, this presents latent value chain opportunities,” he said.
Figures gleaned from the Gambling Authority’s 2021-22 annual report indicate that the industry is showing signs of recovery from the Covid-19 pandemic, generating P173 million in 2022 from P211 million in 2020. Globally, the gambling market is projected to grow to US$876 billion by 2026, with lottery and betting as the most promising segments. In 2018-19, casinos accounted for 71 percent of revenue generated by the South African gambling industry, followed by betting at 13.3 percent and bingo at 6.2 percent. Fast forward to 2020, online sports betting accounts for 43.8 percent of the market while the contribution of casinos has drastically dropped to 43.1 percent.
According to Pricewaterhouse Coopers, a phenomenal growth is observed in online gaming and has been attributed to the convenience it offers.
“Online casinos have made it easier for punters to bet wherever they are via their mobile phones or computers. It also helps maintain privacy, which many punters value greatly,” reads the PwC report.
Furthermore, online gambling sites offer a wider variety of games and betting options than traditional casinos, giving players more choices and opportunities to win. While the Covid – 19 pandemic has led players away from traditional casinos, technology has fast tracked their transition to online gambling. The online gambling market is therefore projected to worth more than $127 billion by 2027, with Africa claiming an increasing proportion of that market in the coming years.
With its population of about 1.4 billion, mostly young people, Africa is an attractive market with huge potential for growth. Its recent economic expansion and major investments in technology also position Africa as the future headquarters of online gaming.
Official statistics indicate that the mobile telephony subscriptions in Botswana stood at just over 4.2 million in 2022. Further, mobile tele-density stood at 210 percent while mobile broadband penetration increased by seven percent to 2.4 million as at March 2022.
The phenomenal growth of online gambling has also been attributed to Africa’s major progress in, and love of, big sports such as football, basketball, cricket, rugby, cycling and athletics.
In conclusion, Kesitilwe explained that the new gambling licenses are expected to create more jobs, boost the technology sector and generate much needed tax revenue for government.