G3 June 2018
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INSIGHT SPORTS BETTING Untapped International Sports Betting Markets There are still a large number of markets around the world where sports betting remains illegal or is underdeveloped. These markets offer huge potential but an expansion will be difficult due to a number of reasons. They include: unstable political conditions, opposition to gambling on principle and a desire to protect government controlled gambling monopolies. Why are some markets untapped, despite their potential? Which jurisdictions offer the most potential and where are we likely to see growth going forwards? What is the potential size of these markets? What obstacles currently stand in the way of land based sports betting expansion in these regions and how likely is is that these markets will open up at some point in the future? P52 NEWSWIRE / INTERACTIVE / MARKET DATA NEWSWIRE / INTERACTIVE / MARKET DATA P53 1 2 4 Ethiopia Gambia Botswana Ethiopia is the second most populous In March 2015 the Gambian Botswana’s economy is set to contract country in Africa after Nigeria and is government banned sports betting. The dramatically amid the fallout from now Africa’s fastest-growing economy ban on gambling was imposed by COVID-19, according to data after a decades-long reform which has former President Yahya Jammeh to end announced by the country’s finance seen the country overcome years of the ‘unethical and exploitative ministry. The Southern African economic upheaval and famine during businesses’ as well as to safeguard and country’s GDP is expected to shrink by the 1980s. On average Ethiopia has promote the welfare of the Gambian more than 13 per cent in the current recorded a nine per cent economic people. However the current fiscal year. It is the largest contraction growth for more than ten years. The government under President Adam since the recession that followed the government has liberalised the economy Barrow has reversed the law in an effort global financial crisis of of 2008. and privatised state-owned companies to create jobs and provide a boost to the but the economy of Ethiopia is expected economy. The reversal, which was In Botswana the government has only to shrink between 5.6 to 11 percent as a made via executive decree, is part of a recently enacted laws to cover land result of the COVID-19 pandemic. much larger plan to modernise the based sports betting shops. The nation’s economy. Although there are gambling authority opened its doors in Sports betting is a relatively new no official statistics, according to local 2016 and was established by an act of industry as it only began in 2013 but press the gambling industry is one of parliament to replace the now-defunct sports betting shops have spread the highest employers in the country. Casino Control Board. While the quickly throughout the country on the The decision is part of the government’s industry is in its infancy Gambling back of the popularity of Premier plans to transform the Gambia into an Authority Chief Executive Thuli Johnson League football. There are now around attractive hub for investors and to told stakeholders last year that the 18 sports betting companies, most of create employment opportunities. government would support the gaming which were granted licences in the past industry as it would help boost the two years. Sports betting operators are economy. licensed by the National Lottery 3 Administration (NLA), all of which have In April 2019 the Gambling Authority branches in the regional states. Each Namibia started the first of their ten towns tour company operates around 30 sports across the country geared at educating betting shops on average. However there the general public about the Gambling is some backlash against the industry as While there are no licensed sports Authority’s mandate, future economic the Ministry of Women, Children and betting parlours in Namibia this is opportunities generated by the new Youth has recently announced its likely to change soon. In 2018 Tourism gambling industry, as well as cautioning decision to terminate gambling licenses. minister Pohamba Shifeta put forward a the public against consequences of All the same operators are moving into draft law that would regulate the illegal gambling. Sports betting licences the space. Locally based Bet251 plans to gambling industry. New laws would put will be granted for ten years open 100 betting shops in Addis Ababa the industry under the control of a new over the next six months. state-owned Gambling Board. The Johnson recently announced that the Gambling Board would be responsible agency’s role is to facilitate the growth for the regulation of 260 licensed slot of the gaming industry adding that the machine operators (six casinos), (254 organisation had been granted approval slot parlours), as well as issue different by the Minister of Investment, Trade, licences for casinos, gambling houses and Industry to issue national lottery and bookmakers. license, casino licenses in Maun, Kasane, Palapye and Gaborone, as well In February this year the Ministry of as sports betting and bingo. Environment and Tourism started conducting nationwide inspections of all gambling and casino operations in order to create a database of licensed and unlicensed businesses. In Botswana the government has only recently enacted laws to cover land based sports betting shops. The gambling authority opened its doors in 2016 and was established by an act of parliament to replace the now-defunct Casino Control Board. While the industry is in its infancy Gambling Authority Chief Executive Thuli Johnson told stakeholders last year that the government would support the gaming industry as it would help boost the economy. P54 NEWSWIRE / INTERACTIVE / MARKET DATA Africa In Africa, Kenya, Nigeria and Ghana stand out as the three jurisdictions where there has been the largest expansion of the sports betting market over recent years. All three markets have been driven by an increasingly young population and the popularity of football, especially the Premier League. In Nigeria the median age is 17.9. In Ghana it stands at 21.1 years while the median age is 19.7 years in Kenya. Increased government scrutiny in all three regions has meant improving conditions for sports betting operators and a fast expansion. While sports betting is already present in these markets (with arguably some room for expansion in all three) there is still plenty of room for growth in other markets in Africa in the future. However these regions are only just putting new gaming laws in place and it could be a while before we see retail sports betting up and running in these regions. NEWSWIRE / INTERACTIVE / MARKET DATA P55 Consultant Network Company, estimate 1 2 the project will cost around US$420m. The project was first announced in India Vietnam November 2018. Meanwhile South Korea’s Golden Horse said that the With a population of almost 1.4 billion Gambling is very popular in Vietnam company plans to set up a subsidiary to India offers massive potential and the with the Vietnamese spending around build a racecourse as part of a $500m government is looking into changing US$3bn a year on lotteries and US$1bn investment in the northern province of gambling rules. The gambling industry on gambling overseas. With a Bac Ninh. Golden Horse had first in India is regulated by each state and population of nearly 100 million and proposed the plan to Bac Ninh in 2017. more loosely on a national level. In increasing incomes Viet Nam offers 2016, India's Supreme Court asked the great potential but sports betting G.O.Max I&D Company (also based in country’s Law Commission to look into expansion could be slow. South Korea) in 2016 said it was hoping decriminalising sports betting including to invest in a horse racing and cricket which is hugely popular. Vietnam's one-party state has started entertainment complex in the province loosening its rules on casino gambling, of Vinh Phuc at an estimated cost of $1.5 The commission concluded that allowing its citizens to bet in casinos billion. Seventy betting points will be set regulating a legalised industry would and opening up some sports betting as up in 54 cities and provinces around the "effectively curb the menace of black- well. In 2017, the government country, as well as an online betting money generation". Sports betting announced that it would allow locals to system as part of the investment. would also create jobs, and generate enter a selected number of casinos However last year the company said significant tax revenue which could be paving the way for more investment. that the proposal to develop a large- used to augment infrastructure for scale horse racecourse in Hanoi, close to other sports and tourist facilities. In June just before the beginning of the its own racetrack in Vinh Phuc, put the However as it is an advisory body, it World Cup 2018 the government also project in doubt. will be up to the Parliament and state passed a bill legalising sports betting. legislators to decide and the topic has Locals are now allowed to bet on yet to be put forward for a debate. football matches but only on those leagues and football events that are on a For now horse racing is the only activity list approved by the sports authority. For 3 on which betting is allowed in India but now the government only allows betting sports betting is legal in a very small on international football games Uzbekistan number of regions where it is legal to recognised by FIFA, which will bet on virtual reality games and fantasy inevitably limit the profitability of any Uzbekistan is implementing a number sports.