The gaming sector has persistently bolstered the gross domestic product of numerous countries across the world, demonstrating its significance as a lucrative and influential industry. Nseobong Okon-Ekong and Iyke Bede write that Lagos hopes to get a 30 per cent share of the African gaming market. Plans for this lofty dream were unveiled at a recent four-day expo hosted by Governor Babajide Sanwo-Olu
Undoubtedly, the entire gaming sector contributes more revenue than most sectors. Shawn Kayden, a former chairman at Sony Interactive Entertainment Worldwide Studio in a recent chat with CNBC noted that the video game industry alone is a $200 billion industry.
“It is bigger than music. It’s bigger than movies on a revenue basis. The largest entertainment sector in the world,” he asserted.
Since 2020, the gaming industry has witnessed unprecedented growth, partly attributed to increased demand during the COVID-19 pandemic as people sought entertainment and social connection while staying home. The growth trajectory has maintained a steady pace since then, propelled by the penetration of tech to underserved regions and governments providing more flexible regulatory frameworks for stakeholders to coexist.
According to Vantage Market Research, the video game sector of the gaming ecosystem is expected to have a Compound Annual Growth Rate (CAGR) of 13.6 per cent between 2023 and 2030 to hit $682 billion in revenue. The 2022 revenue was recorded as 245.9 billion. On the other hand, the sports betting sector, which includes all games of chance and those that require some level of skill (poker), boasted a revenue of $83.65 billion in 2022, according to Grand View Research. The sector is projected to experience a CAGR of 10 per cent to reach $182.12 billion in 2030.
Bimpe Akingba (m) flanked by Elizabeth Lusk (l) and Lindsay Kalbfleisch of Greo
With the Asia Pacific regions accounting for most growth in all gaming sectors, the African market, albeit plagued by infrastructural and regulatory issues, has remained promising. Its top three markets—South Africa, Nigeria, and Kenya—average a market value of $1.97 billion in the sports betting segment. Meanwhile, Egypt, South Africa, and Nigeria have a combined valuation of $2 billion in the video gaming sector.
Noting these growth trends in revenue generation by the sector, the Lagos State Government in collaboration with the Lagos State Lotteries and Gaming Authority, the Lagos State Ministry of Tourism, Arts and Culture hosted the maiden edition of the Africa Gaming Expo (AGE), which took place at Eko Hotels and Suites, Lagos, attracting regulatory bodies, regional and global gaming operators, and stakeholders from adjacent industries to discuss existing problems with an outlook to deliberate and proffer sustainable solutions.
Lagos’ targeted income generation strategy has led to a substantial dedication to bolstering the creative industry, with the gaming sector now receiving comparable support under the aegis of Governor Babajide Sanwo-Olu.
“For us as a government, as a subnational, as a state, we are an emerging city, the biggest city in Africa. We see this theme as extremely important to us, which is ‘Entertainment, Gaming and Tourism: A Nexus for Economic Growth.’ This title ties everything together,” Sanwo-Olu noted. “We believe the gaming sector could be a real engine of growth that can propel social order and economic development and redefine wealth within our various communities. In my view, it will appear more germane to speak to an integral part of the state’s economic agenda and its own priority.”
Citing the state’s support for the entertainment sector and the resulting investment returns, the governor affirmed his trust in the gaming sector’s potential for success, particularly with the backing of 60 million daily punters.
The governor described Lagos as a movie, music and fashion centre of Africa.
“No doubt, we are indeed in the right place. Convening the African Gaming Expo in Lagos could not have come at a better time as it portends to strategically reinforce the State Government’s Development Agenda as encapsulated in T.H.E.M.E.S+ Agenda, specifically the sixth pillar – Entertainment and Tourism,” said Sanwo-Olu.
He added, “Today, Lagos state is one of the top 10 fastest growing cities in the World, ranks sixth in GDP in Africa and contributes over 25 per cent of the GDP in Nigeria. However, Lagos State still needs more support in terms of investment in the entertainment and tourism sector.
“The state has one of the best protocols for ease of doing business. This expo would provide our partners insight into the investment opportunities waiting to be explored in our entertainment, gaming and tourism industry in the state.”
The Lagos governor called for collaboration among stakeholders to develop new ideas and strategies that will fully realise the socio-economic potential of the gaming, entertainment, and tourism industry in Africa.
He pointed out that these initiatives aimed at increasing “our share of the African gaming market to at least 25 to 30 per cent,” with Lagos as a key player in a rapidly growing industry, propelled through a public-private partnership.
The chief executive officer of Lagos State Lotteries and Gaming Authority, Mr. Bashir Are, commended Sanwo-Olu’s administration for its unwavering commitment to revolutionising the gaming industry through effective regulation, leveraging modern technological innovation and global best practices. He said the expo was to exchange ideas and share valuable insights that would change the face of gaming while harmonising the standards and regulations in Africa.
In his welcome address, the Chief Executive Officer of Africa Gaming Expo Limited, Dr. Charles Ekundayo, said, “The aim of organising the expo is rooted in promoting the Africa Gaming Market while fostering collaboration among industry professionals and addressing the challenges faced in the industry.”
Over 35 speakers in the industry and hundreds of delegates from different countries in Africa and outside the continent at the inaugural Africa Gaming Expo attracts over 35. The gaming summit attracted important dignitaries, including the Director-General of the National Lottery Regulatory Commission (NLRC), Mr Lanre Gbajabiamila; Managing Director of GSA Europe/President, IGSA, Mark Pace; Chief Executive Officer, Gambling Authority Botswana, Peter Kesitilwe; and Director, Stakeholder Engagement, Greo, Lindsay Kalbfleisch and Are.
As the four-day conference drew to a close, experts meticulously dissected an array of crucial topics, including responsible gambling, internet infrastructure, regulations, data protection, and anti-money laundering. Through insightful comparisons of the diverse gaming landscapes across Africa, bespoke solutions and recommendations were crafted, marking a significant step forward in addressing the industry’s challenges.
