The App2Top editorial team has analyzed the current state of the online gambling industry in Nigeria. They have focused specifically on legal issues and the slots market.
Each of Nigeria's 36 states is authorized to establish its own rules regarding gambling. As of 2024, various forms of gambling have been legalized in 11 states, primarily in the south.
Currently, the principle in the country is that everything is permitted as long as it is not prohibited. While ordinary casinos and other gaming establishments are regulated without issues through two federal laws, the online sector faces more complexities.
The only explicitly stated restriction pertains exclusively to online casinos. However, there is a nuance: at the regional level, especially in Lagos—one of the priority jurisdictions for operators—the law is more lenient. Companies entering the digital market need only register with the relevant state authority.
Notably, any organization can obtain a general gambling license in Nigeria. There's no requirement to register a legal entity in the country or establish a local office. Among the requirements is that the candidate company's charter capital must exceed 30 million nairas (or $19,300). It must also pay application fees: 50 million nairas ($32,200) for sports betting; 100 million nairas ($64,500) for lotteries. An annual tax of 7% on GGR (Gross Gaming Revenue) is then imposed.
Moreover, this year the government introduced a special permit for offshore companies that can offer only online services for five years. The total application fees for international operators amount to $500,000. According to the regulatory website, the permitted gambling activities include: online casinos, bingo, slots, sports betting, and poker.
It should be noted that there are no official data on the size of the market in Nigeria. None of the local regulators keep records. However, according to forecasts, by next year the Gross Gaming Revenue (GGR) of Nigeria’s iGaming sector will reach €675.1 million. In April 2024, these figures were reported by iGaming Business citing H2 Gambling Capital.
During the same period, iGaming Business, together with EveryMatrix, published the results of a study on the Nigerian online slots market. In July, EveryMatrix updated it. Below are the key findings.
- The average bet per user is €0.41.
- Each player launches slots an average of 16 times over 90 days.
- The average number of spins per gaming session is 66.
- Top 3 popular themes among users are: classic – 14%; action – 12%; fruit – 11%. Note that so-called adventure or action slots are a whole sub-genre, which implies high interactivity, dynamic gameplay and storyline, as well as well-thought-out symbols (beyond standard sevens, horseshoes, or berries).
- Top 3 basic slot features: 'wild' symbol – 13%; slots with a special multiplier – 10%; scatter symbol – 6%.
- Retention is mainly ensured through bonus free spins, which are present in 65% of top-rated games. This is followed by the ability to purchase increased multipliers, infinite spins, and other features for an additional fee – 40%. Finally, a high chance of hitting the jackpot – 15%.
Top 5 slot providers:
- PragmaticPlay;
- SmartSoft;
- Platipus;
- Habanero;
- Spinomenal.
Top 5 online slots:
- Multi Hot 5;
- Nile Fortune;
- Candy Jar Cluster;
- Hey Sushi;
- 7 & Hot Fruits.