Nigeria is one of the newer entrants to the regulated online gambling scene. This year, it’s already projected to reach over $640 million revenue. By 2029, the market volume is projected to reach over $860 million. The growth and promise of the market has everyone talking in the entertainment sector.
Now, another country wants to jump in. New Zealand is now taking steps to launch a regulated online casino market. While the iGaming scene is already present in New Zealand and not banned, the government finally seems to have realized the potential in taxation – at the very least – of a regulated online casino scene.
Despite the two countries being very different in population, culture, and demographics, the New Zealand market is expected to hit quite similar heights to Nigeria through the early doors. Even with such a difference on paper, the Kiwis would do well to avoid some of the unforeseen missteps of the Nigerian market.
Are New Zealand and Nigeria even comparable?
Source: Unsplash
Nigeria is the most populated nation in Africa and, by 2050, is expected to overtake the continent-spanning United States as the third-most populated country in the world. Currently sixth in the world with over 232 million people, per World Meters, the US is only in at 345 million. Both India and China exceed 1.4 billion.
New Zealand, in the southeast of Oceania, has a population of just over 5.1 million people. It’s not expected to experience massive population growth over the next couple of decades, nor is it presently among the highest ranking. However, as it stands, internet penetration stands at 95.7 percent, according to Datareportal.
Nigeria’s internet population is, naturally, far larger, but as a percentage, it’s only around 40 percent of the total population. Even by 2027, that figure’s only set to expand to 2027. So, as a market, there is more room for growth in Nigeria through internet penetration, but in New Zealand, brands can immediately access as much of the market as possible.
Get the licensing landscape finalized before launch
Nigeria’s iGaming market is going fairly strong, but there is a licensing battle that’s thrown the relative certainty up in the air. As it stands, Nigeria’s National Lottery Regulatory Commission is happy to regulate gambling at a federal level. Where issues have arisen is in some states where they believe the government should obtain local licences to operate therein.
In New Zealand, there is already a rather healthy iGaming market. As the listings from Casino Alpha show, plenty of respected, international brands are available in New Zealand, offering world-class games and even crypto gaming. Still, the government now seeks to both regulate and take a piece of the market, which is understandable.
It’ll likely take until 2026 for the government in New Zealand to roll out its licensing framework and a regulatory body. While these pieces are put into place, the legislature should take lessons from the current situation in Nigeria. From the outset, they should make clear where licenses are required and where they’re not.
Should everything go smoothly and the market essentially continue as it is right now, but with licensing and regulation, the New Zealand market is expected to be worth $500 million for online casino gaming alone when it launches. Considering Nigeria’s current standing at $640 million, it’s clear that NZ is a hot market for iGaming.
New Zealand’s iGaming market looks to be quite hefty when it’s regulated, and if the order of licensing is all lined up before launch, it should be able to avoid some of the pitfalls current experienced in Nigeria.
