In a twist that’s raising eyebrows across the industry; a wave of ambitious new sports betting companies is flooding into Nigeria’s market, defying harsh economic headwinds and a daunting new tax landscape.
This bold move comes at a time when established players are contemplating consolidation or even exit strategies, making it a high-stakes gamble that’s too intriguing to ignore.
1win is one of such daring companies that chose to go against the flow and recently made its debut on the Nigerian i-gaming scene for three reasons: First, there are market growth opportunities.
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The Nigerian gaming industry is rapidly expanding, with a growing acceptance of online betting. This presents an opportunity for new entrants to capture market share. Second, comes the regulation.
Despite the new tax obligations recent regulatory developments in Nigeria create a more structured environment for the industry and provide a stable operational framework.
Third, it is demography. Nigeria has a large and youthful population with increasing internet and mobile penetration, making it an attractive market for online betting.
The CEO of the Lagos state Lotteries and Gaming Authority (LSLGA), Bashir Are, shares 1win’s ideology, but is committed to correcting the impression that the recently introduced tax regime is stringent.
He explains that for the longest time, numerous i-gaming companies got used to tax avoidance and when the time comes to pay up, they run ‘helter skelter’.
However, Are admits that the current dichotomy which i-gaming companies face in paying taxes at the federal and state levels of government, is in the process of being resolved.
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With the influx of new i-gaming companies like 1win, there is a creeping fear that this may lead to potential market exits of established players due to market saturation.
Are pumps the brakes on that fear and asks those concerned to perish the thought, insisting that “no one is going anywhere”, with the exception of the i-gaming companies that came into Nigeria without a sustainability plan: “The sports betting operators that are doing really well are less than 20.
Those companies that are exiting Nigeria most likely came in with inadequate information and funding.
Hence, they were bound to pack up as there was no sustainability plan,” Are told betting news site SportsBoom.com. “For instance, if the market entry requires 10 million dollars and a company came in with 1 million dollars thinking that they could figure things out as they go, running into issues is imminent.”
“There is still a heavy investment in the gaming industry and as an authority; the LSLGA is committed to ensuring that Nigerians aren’t simply consumers.
For instance, in Lagos state, we promote software developers by giving grants. We urge them to develop products that can be placed on international platforms, which would lead to forex earnings, as opposed to simply gambling.” 1win is not interested in being one of the i-gaming companies that figures things out as they go.
With seven years of global experience and 30 million players worldwide, their goal is to stand out to Nigerians. By leveraging on several competitive advantages including a reputation for the widest portfolio of i-gaming products and services comprising 15,000 different slots and 700 live games, as well as its own sportsbook and signature poker.
However, it’s not all rainbows and sunshine for 1win- as one of the ‘new kids on the block’, it’s facing challenges which are most typical for markets including VAT on betting services, withholding taxes on customer winnings, state-specific regulations, as well as market-entering expenses associated with obtaining a gaming license.
Interestingly, 1win doesn’t see the aforementioned as ‘barriers’, but challenges which don’t deter it.
