Staying ahead of the competition; our strategy
-Dotun Ajegbile (Founder Betland/Yellow Lotto Brand)
Just like any other booming industry in Nigeria, the sports betting business has grown astronomically. Over the years, pool staking and betting have been the traditional way of gambling in Nigeria, however they had nothing to do with sports. The emergence of sports betting has increased due to the various betting websites that have grown in popularity.
Since most Nigerians show interest in football more than the other sports such as basketball, tennis, snooker, baseball and cricket; the betting sites allows betting on all football league matches, especially the European leagues which includes Spanish La liga, Italian Seria A and English Premier League as well our local Nigerian Premier league and the FIFA World cup.
With an estimated 60 million Nigerians actively involved in sports betting, and over 50 betting sites operating in the country, sports betting is experiencing a massive surge in Nigeria, and is consequently having a huge impact on the economy.
Nigeria has become the second largest online gambling market in Africa, behind South Africa, with a Gross Gaming Revenue of $58 million in 2018, according to a report by top accounting and auditing firm, PwC. The report projects that the GGR will rise by 16% over a five-year period.
The country has over 200 million people, supplying the population to feed the betting companies. Nigerians are passionate about their sports, especially football, and this has extended into their love for sports betting. The fact that they can make money from the sport they love so much is extremely appealing.
The rise in sports betting has also been aided by:
- improving technology, with many Nigerians now having access to mobile phones and affordable internet.
- unemployment rate in the country remains high, which has also contributed greatly to the rise in sports betting.
Nigerians plough about $5.5 million into sports betting every day, totaling an incredible $2 billion a year. The betting companies have found a gold mine in Nigeria, and are expanding rapidly.
Just yesterday, talkbrand Africa had the privilege to interact with Mr. Dotun Ajegbile, the founder of Betland/Yellow Lotto Brand- a major player in the sports betting business in Nigeria, he opened up to us on the business challenges, Betland’s winning strategy , competition and the future of the betting industry in Nigeria; Read the excerpts below:
Brief description about yourself:
The name ‘Dotun Ajegbile is legendary to the Nigerian sports betting landscape as his pioneering work during the early days of Sports Betting in Nigeria along with a few other visionaries was the foundation on which the present day success of the sport betting industry rest upon.
Betland as a brand in Nigeria-include when did the brand starts its operation, success so far in Nigeria?:
Betland as a brand is registered with the Corporate Affairs Commission of Nigeria (CAC); was originally launched in 2013 but stopped operations in 2015 due to internal management issues. Betland is officially licensed by the Lagos State Lotteries Board (LSLB) to engage in the business of Sports Betting and Lottery in the state. The New Betland was officially launched November, 2019 and from that period till date has been a better alternative to punters with its exciting products and Omni-Channel platform that caters to the need and yearnings of all customers bridging the links across all market segmentations. The suspension of major sports leagues in Europe has supended the gambling industry, especially sportsbook operators, due to the Covid-19 pandemic and the restriction of movement in previous months. We are happy business ids gradually taking shape over.
From a business perspective, what impact did COVID have on company sales?
The COVID-19 Pandemic sure has a negative impact on the sport betting and lottery market in Nigeria especially in the area of the business day to day retail operations of the brand as it affect Shops Retail Operations; most sport betting shops and lottery shops were on lock down and as a result of this, much emphasis was placed on the rapid growing Online Markets branch of the business. The introduction of Online Virtual Gaming Experience such as Simulated Virtual Reality Football Leagues; La Liga, EPL, Serie A, UEFA Champions and Europa League, Virtual Sports and Online Casinos further promotes Betland online market reach to many active and newly registered online customers as a result of this forthright thinking market innovations and it also helped stabilized the brand operation and gave room for continuity as far as promoting and selling the brand, to our teeming customers far and near during the COVID- 19 pandemic, total lockdown of movement of people and trading activities at the popular traditional trading and working environment.
The ease lockdown in Nigeria and resumption of some major sports leagues in Europe, how has Betland reacted to this? And how as sales been like in comparison to when restriction of movement? :
The easing of the lockdown had a positive effect on Betland shops retail operations by increasing our daily sales turnover no doubt, and in the long run it has also enabled us to refocus our brand loyalty program towards all our loyal customers; online, shops and the punters alike.
What is Betland doing to mitigate the effect of the Covid-19 crisis to remain afloat in business as we have often seen many companies are placing their workers on furlough? Why some are sacking, even some are facing bankruptcy? :
At Betland, as a result of the COVID-19 experience, we have also re-strategized our business model by applying the 80-20 Rules; 80 percent of Betland’s brand awareness and marketing drive is geared towards Online Gaming Solutions and 20 percent to Shop Retail expansion policy. The future of the sport betting and lottery market lies in online gaming services and the future is here!
Marketing is one department betting companies have reduced in their budget due to the health crisis. Some brands have been doing continuous marketing to retain their customers that are dormant during the suspension of significant football leagues regarding this.
What is Betland doing to keep its customers?
At Betland, we are doing lot of promos online and in shops by using our Social Media handles and trading platform to engage with our active and targeted customers to stay committed to Betland and also for new customers to come onboard the Betland Train. We are also working on introducing customer’s affiliate programs that encourages every Betland customers becoming stakeholders and offering them tangible returns in promoting the “Betland Brand” to all and sundry, also we are working with major sport betting marketing brands such as Betgenius, Sportrader and others to come up with highly innovative marketing solutions that are customercentric using data analytics and AI (Artificial Intelligence) to meet up with the yearnings and aspirations of all punters home and abroad.
Influencer marketing is the prevailing trend in Nigeria now in which several sportsbook brands have been going into agreement with the notable ambassador in Nigeria. Does Betland have any intention of going into this direction anytime soon or in the future?
Influencer marketing has its own plus and minus as we are all aware, for us at Betland, our targeted Brand Ambassadors for now are our loyal customers; by leaving no stone unturned towards offering them the best of customer service, highly innovative products and market options, prompt settlement of winnings, highly effective customers loyalty program such as the Betland Affiliates Program; These marketing and promotional efforts guaranteed more returns than putting money in the pocket of one or two individual (Influencers) who has no passion for the brand, who doesn’t have a clue what the sport betting market is all about, that is not to say we are completely oblivion of what Influence Marketing can also bring to the table if per chance we are fortunate enough to cross path with an influencer’s of repute that ticks all the box, why not? Perhaps some stakeholders, experts in the gambling industry, are projecting a shift for customers in Africa during the lockdown, especially betting online garner tremendous traction from players as an operator.
Did Betland witness something of that nature? While some say the shift to online is even close than first projected due to the health crisis, can you share your perspective on this?
At Betland, we are a futuristic brand. From time to time we expense lot of resources on industry research and exploring the future of this industry especially here in Nigeria and beyond. Saying online market is the future of this business is stating the obvious. A reality that Betland had already foresaw some years back even before the advent of COVID-19 pandemic restrictions and locked down. While our rival brands are focusing on web solutions, we are more interested in having an Omni-Channel Trading Platform that harmonize the best of both world; Web and Mobile Platform Technology for our users and customers alike. We have already had a breakthrough in working with POS, Mobile Phone and Computers in servicing the need of all our customers at the touch of a button. We are rolling out all these features any time soon. Introducing the All in One CashBox! Betland is a winning brand in all ramification; little wonder we pride ourselves as the customers Preferred Bet.
There has been the issuance of license tussle in the last couple of years between the National Lottery Regulatory Board and Lagos State Lotteries Board on the position of where do you have the right to operate in the country. Regarding this, the state government blocked specific companies from advertising in the Lagos. Because they don’t have a Lagos State gambling license, while the Federal license issuance (NLRC) National Lottery Regulatory Commission made a press release to this said as long as you have (NLRC) license, you could advertise anywhere in Nigeria and operate. Some experts say Nigeria is the biggest loser if we don’t find a lasting solution to this.
From your perspective as an operator, what do you think is the lasting solution to this menace between two regulatory boards?
On licensing tussles between the NLRC and States Lottery Board; it is more of every government agencies wanting to have their own slice of the national cake (Sport Betting and Lottery is the New Crude Oil). For us at Betland, it is a challenge but not an obstacle towards achieving our corporate goals and objective in this industry. As a pioneering and active member of the ANB (Association of Nigeria Bookmakers) – We are engaging and working relentlessly with all stakeholders to make the business environment favorable to all parties in the short and long term such that it is a win-win situation for all stakeholders.
In recent years, many international betting brands have established themselves in the Nigerian gambling scene, especially online operations. Do you see them as a competitor since the shift to online is imminent in Africa? Share your opinion on this:
Betland is not a docile brand; we are a very competitive brand. The business world today thrives on competition and any brand that is not ready to compete can as well just pack up and leave! Betland is here to compete and win…. We are a winning brand!
In the next five years, where do you see the Betland brand in the Nigerian gambling market? :
Realistically in the next five years, we are targeting to become the leading sport betting and lottery brand in Nigeria and indeed Africa – That’s the goal.
What advice do you have for some investors out there that are interested in the Nigerian gambling market?
- As an investor, it helps more if you truly understand the basic concept of life and business development (Resources management and tapping into business opportunities wise)
- You have got to be passionate and stay committed to the goal of why you are in this business and be in sync with your corporate vision for the business.
- It is a very profitable business venture but you have got to give it time to grow; usually between 2-5 years gestation period.
- When you water the plant, surely it will grows – We are talking about a market of an estimated N2 Billion Naira Daily Turnover Market (2017 Nigeria Sport Betting Market Survey Report) There is enough to go round for every serious and goal oriented brand.
- Lastly, it helps you more when you can partner with a winning brand, instead of starting your brand from scratch.
Thank you for your time:
Thank you for having me.
THE FUTURE OF SPORTS BETTING IN NIGERIA:
Industry operators believe that as the numbers of internet subscribers keeps increasing, so will the number of game users, and there may be the need for mergers and acquisitions of fragmented small players in the industry.
“The growing Nigerian gaming industry is fragmented, with many small players. As user behavior changes and spending needs increase, the industry could be forced to consolidate, in line with global trends”.
Partnerships have become important in delivering a successful gaming experience. Telecommunication and payment companies are making gaming more accessible to mobile users.
In addition, betting companies are partnering with mobile payment platforms, to offer attractive bonuses on stakes, thus attracting more customers. Giving the prospects of the Nigeria’s gaming industry, there are opportunities for foreign technology companies and service providers to increase local presence through partnerships with Nigerian companies who can deliver different sections of the value chain. These services include provision of gaming software, sports feeds, odds, virtual games, managed IT services etc. This will help to create more jobs and build more a skilled workforce, leading to sustainable growth of the gaming industry.
Top Gambling Statistics in Nigeria
- There are over 60million Nigeria who has been actively involved in sports betting
- The sports industry in Nigeria is estimated to be worth about $730billion
- About $2b is spent on sports betting daily in Nigeria
- On average, punter spends around N3,000 daily on sports betting
- 53% of Nigeria engage in betting at least once a day
- 26% of people who bet that timely payment of bet wining as one of the major reasons will pick a betting platform
- The majority of bettors in Nigeria see betting as one of the means to make quick money.
- In total, only 3 licensed casino exists in Nigeria
- Despite having only 3 licensed land casino estimated revenue from casino is estimated at around $70million yearly
- 14 million bet stakes and payments are made over the internet every day
- Around 1200 offline visitors per month visit an offline betting store
- 2% of school-age children have gambled at least once in their lifetime and 77.6% of these have gambled in the past year, with 58.3% reporting unfettered access to gambling
- Bet9ja rakes in an average monthly turnover of $10m while the number 2 player behind Bet9ja, NairaBet makes an average turnover of $3m-$5m, a 20-30% margin on profit
- 77% of respondents attested to the high prevalence of betting and gambling in their locality; particularly amongst ‘respondents in the South-West (92%) and South-South (91%) geo-political zones, which recorded the highest prevalence’.
- About 70% of sports betting trade has been estimated to come from trading on football
- Lagos is the largest gambling city in the country, and it has 1 gambling facility, 10 table games, as well as 106 games, slots, and even video poker machines
Source: https://www.bettingsites24.ng/
General Gambling Overview
- Betting makes up 35% of the total gaming industry
- 26% of the world’s total population gambles. That means around 1.6 billion people worldwide gamble
- The worldwide betting industry is estimated to be worth $450bn
- Top counties with the highest betting lost per adult are Australia, Singapore, Ireland, and Canada with an estimated lost $1,788, $1.174, $588 and $568 respectively
- The world cup is the most heavily bet sporting event in the world with around $136 billion placed in bet on the World cup in 2018
- The global online gambling market size was estimated at USD 53.7 billion in 2019 and is expected to reach USD 59.6 billion in 2020.
- Estimated global gross win in the US is $74.39bn
- 2 billion people in the US gamble at least once every year.
- 15 percent of Americans gamble at least once per week. Approximately two to three percent of Americans meet the criteria for problem gambling. That is around 6 million adults and about a half-million teens. The US gambling industry is estimated to be worth $240 billion industry
- The UK gambling industry is estimated to be worth $18billion
- Approximately 85 percent of Americans have gambled at least once in their lives; 80 percent have gambled in the previous year
- Europe dominated the online gambling market with a share of 41.0% in 2019. This is attributable to the legalization of gambling in countries such as France, Germany, Spain, Malta, and Italy.
· Source: https://www.bettingsites24.ng/