Gambling is becoming a favorite pastime for more and more Nigerians, with 36% of recent study participants having a gambling experience. Further, about 60 million Nigerians aged 18-40 actively wager, spending ₦3,000 ($7.3) daily on average. Therefore, there is much business potential for starting sports betting company in the West African country.
Read on to learn everything necessary to start sports betting business in Nigeria!
1) Check sports betting legality
Ensuring that your sports betting business follows all the legal essentials is vital. Generally speaking, among lottery commissions of Nigeria, the National Lottery Regulatory Commission regulates gambling. However, there’s no single law that touches online sports betting. Thus, the Nigerian population can freely bet on local and foreign gambling websites. Though, wagering is restricted to people aged 18 and above.
2) Create a business strategy
Research shows that strategy choices have much effect on the success of startups. Overall, there’re 3 basic types of business-level strategy: shaping, reserving, and adapting. In a business environment where product differentiation is minimal such as the sports betting industry, the adapting plan should be your top choice. In a classical adapting approach, business owners accept the present industry structure and stay on the lookout for opportunities in the market.
Moreover, make sure to answer the following questions in your plan:
How much money do you need to invest?
How will you position your business?
How will you differentiate your services?
Do you need speed to market?
Answering these questions, you’ll have enough information to create a marketing plan, pick a software provider, and more.
3) Choose a sports betting software
Picking a betting platform that gives your customers an exciting gambling experience while making your work easy is essential. Today many operators prioritize creating an identity for their business via the customization of their betting products. Thus, we’re presenting you with the latest trends to give you comprehensive solutions!
API (Application Programming Interface) lets you integrate betting odds quickly and easily through special codes. Note that this solution works only if you already have a platform. Once integrated into your system, it can display information such as live scores, odds, statistics, and a lot more.
Getting a Modular API license from a trusty provider such as Digitain, yet to enter the Nigerian market, you can connect your platform with your partner’s system for a smooth experience. Besides, you’ll get a scoreboard, graphic animations, etc. Want more flexibility? You can even integrate an API solution into your own system as an independent product.
In brief, through API, you can boast an impressive user experience with a fair amount of effort.
Do you want more control over your betting software? Do you need customization for your product offerings? Turnkey gives you much freedom for designing your betting platform, structuring it, and choosing payment options.
So what are the main benefits of a Turnkey approach? The highlights are creating a product strategy, developing a marketing plan, and accessing speed to market. In addition, controlling your branding, promotional, and trading strategies are straightforward with Turnkey. Also, you can outsource a lot less because transferring knowledge from one team to another is easy.
Moreover, you’ll need to obtain a gambling license independently and take care of the financial matters as a Turnkey solution provides betting companies with technical and software services.
4) Optimize your platform for mobile devices
As of 2021, about half of the Nigerian population accesses the internet through mobile devices. What’s more? In 2026, the figure for mobile usage in Nigeria to access the internet will reach about 60%. With more and more Nigerians using smartphones and tablets, it is no surprise that app-based gaming is predicted to make up $126 million in 2023.
Getting a mobile application from Digitain, you can offer sports lovers a high-performing platform with a user-friendly experience. Furthermore, sports betting is fast, straightforward, and secure via native mobile apps. Also, you’ll get design and navigation tailored to both Android and iOS users’ experiences.
Today mobile betting apps offer wagers virtually everything the official website of a sports betting company would typically boast. From signing up, making deposits, betting on tons of sports, to collecting their winnings via various payment options, sports betting is at gamblers’ fingertips through mobile devices.
Moreover, operators in Africa can now get Digitain’s USSD / SMS betting service which gives you:
live service without internet
tailored solution for emerging markets
Do you want to provide a quality customer experience on all channels? HBR has confirmed that omnichannel retailing can get the job done through its study of 46,000 customers.
So what’s in the omnichannel solution for you? Omnichannel retail focuses on providing a smooth customer experience both on web and mobile versions. Concerning mobile devices, through geofence push notifications, you can get the most out of location-based marketing. By capturing live location coordinates and instantly communicating with customers, you can boost traffic to your platform.
5) Obtain a gambling license
All bookmakers are required to have a license before starting their own sports betting business in Nigeria. Overall, you need the approval of several operators. The Nigerian Investment Promotion Commission and the National Office for Technology Acquisition and Promotion are among the primary organizations.
To get your gambling license—follow these steps:
Fill out NLR’s application form
Write a letter to express your intention
Meet the financial requirements:
A company with a minimum share capital of ₦30,000,000 ($72,900)
Application Fee: ₦2,000,000 ($4,860)
Permit Fee: ₦100,000,000 ($243,000); if the company is a member of the ANB, ₦50,000,000 ($121,500) discount is given.
Bank Guarantee at the minimum ₦25,000,000 ($60,750)
Submit general business, operational, financial, and technical information
If you pass all the application steps, you will be charged ₦50,000,0000 for the gambling license.
6) Establish trust with your partner and customers
Trust is crucial in every single business relationship. It should be a high priority in your business plan, from developing mutual reliance with your provider to building customer confidence.
Besides getting a high-performing platform from a top provider, you should expect excellent B2B support from your potential partners. When you start a sports betting company, you will receive various questions from your customers. Promptly and adequately answering their questions is a step toward creating a winning brand reputation.
A trusty provider of online sports betting solutions is available 24/7, has a solid understanding of its partners’ needs, and can provide them comprehensive support in no time. Excitingly, the best providers do all of this in your own language!
Moreover, till today there’s some negativity attached to the operation of sports betting companies. To attract potential customers, therefore, and to do this sustainably, you should promote responsible gambling. For example, you can introduce gamblers to the Association of Nigerian Bookmakers, which aims to reduce betting risks and deal with problem gambling.
7) Create a marketing plan
A proper marketing plan will make your sales easy. By creating an ideal marketing strategy, you reduce your marketing costs and improve conversion on your sports betting company.
The number of national incoming and outgoing text messages in Nigeria made up about 9.6 and 20.1 billion in 2018. Excitingly, the worldwide read rate is 97% within the first 15 minutes received, reports Smart Insights. Therefore, SMS advertising can be highly effective if executed properly.
Follow these tips to maximize your SMS marketing:
Understand your customers: e.g., Nigerians love football
Send clear texts: concise, in plain English, using emojis wisely
Always use CTA buttons
Create a sense of urgency
By creating a digital marketing strategy, you’ll clearly understand your market share and thus properly position your business. Generally speaking, your digital marketing strategy should include search advertising, SMM, content marketing, and influencer marketing. Besides, search promotion makes up the market’s largest share and is expected to reach $463,814m in 2021.
To create a successful digital marketing strategy:
Develop a customer persona
Set your objectives and goals
Deliver high-quality content
Make your platform user-friendly
Differentiate your offerings
Keep track of your progress
With Nigeria sports betting reaching new heights, being mindful of the industry’s environment and opportunities is key to success when starting a betting company in Nigeria.