The impact of sports betting on Ghana’s business landscape
In the last couple of years, sports betting has become a significant player in Ghana’s entertainment and economic sectors. With a mix of cultural affinity for sports – the most common being football-and increasing internet penetration, the sector is gaining considerable traction.
According to a report from the Ghana Statistical Service, Internet access hit approximately 57% in 2020; that number has most likely continued upwards. Thus, this paved the way for a rise in various online platforms, which thrived on offering Ghanaians easy access to sports betting and casino games.
The global online gambling market, as of 2021, was projected at approximately $66.7 billion and set to reach $92.9 billion by 2024, with the African continent on a relatively high growth curve. Ghana therefore features as one of the innovators in the regulation of online sports betting in West Africa, thus putting itself well in the global trend and attracting a number of local and international players into the market.
Economic contributions of the betting industry
The other economic implications for the sports betting industry in Ghana are multifaceted. According to a study carried out by the National Lottery Authority in 2022 regarding taxes and licensing fees, the betting industry contributed GH₵200 million – about $34 million – into the national treasury. This stream of revenue plays a very important role in funding public services, infrastructure development and social programs.
Besides this, the industry has created thousands of jobs through direct and indirect means. This ranges from customer service representatives, who are brought on board as the online betting platforms continue to expand in their operations, to technical developers skilled enough to handle the operations. According to the Betting Control Commission, it is estimated that the sector employs at least 10,000 people who have a meaningful engagement but retain importance in the modern job market.
Apart from the creation of employment and revenues from taxes, the industry of betting ensures that other industries related to it, such as advertisement, technology and financial services, are spurred into economic activity. Betting companies, in most instances, work together with local businesses on advertisement, sponsorship and promotional events; therefore, increasing the base of economic impact.
The role of technology in transforming sports betting
Technology has fully changed the aspects of sports betting in Ghana. With the introduction of mobile apps and online betting sites, bets have become more accessible than ever. About 70% of sports betting in Ghana is done via mobile phones, according to a report from the International Gaming Standards Association in 2023. This development goes in tandem with the trend observed across the world, where there is a general increase in the use of mobile phones for online bets, convenience and immediacy being the main reasons.
Improvements in the technological ways of making payments have been making betting easier. These days, it is rare to find a company that does not allow the usage of electronic payment systems, such as MTN Mobile Money and AirtelTigo Money, for settling bets. Such integration of technology not only improves the user experience but also provides for financial inclusion, whereby individuals with no access to traditional banking can join the betting economy.
Besides the aspect of accessibility, technology has also worked on aspects of transparency and security in the betting industry. The Ghana regulatory bodies-in which the Betting Control Commission is one of the most notable-forced all those in this line of business to comply with strict protocols that assure proof against fraud and fairness of transactions. With better analytic tools for data and artificial intelligence, betting companies are able to gain insight into consumer behavior while offering better personalization and customer services.
Investment opportunities in the sports betting sector
The coming of the sports betting industry in Ghana therefore opens up lots of investment avenues for local and international investors alike. Liberalization of the market and putting in place a regulatory framework do therefore provide an enabling environment for investment in it. According to a 2022 report from PwC, the African gaming market, which includes betting, is projected to reach $5 billion by the end of 2024, with Ghana among those key contributors.
There are many diverse avenues into which investors can consider on the sports betting scene, such as creating new betting platforms and further investment into technology to ensure a more refined user experience, among others. For instance, partnerships with the most popular football clubs in Ghana will bring the dual benefit of promoting the betting platform and a way of giving back to the local sport.
Besides, the growth of esports and virtual sports is an added channel for investment as well. As these digital and online platforms make the inclination for the young, this gives an arbitrage opportunity to these betting companies in gaining new markets. For example, it is reported that the esports betting market will grow sharply to reach $23 billion by 2025. This trend is also a good portfolio diversification opportunity for investors. Suffice it to say that sports betting, as currently constituted in Ghana, stands at the crossroads of rapid growth and diversification.
With its economic contributions, technological advances and great investment potential, the sector is a beacon of opportunity within the broader perspective of the Ghanaian economy. As regulations continue to evolve and this market gradually matures, these stakeholders are actually positioned to benefit from the unfolding developments in this dynamic industry.