Today, I share shocking stats on a lucrative industry you can consider venturing into in. Now, I should put out a caveat that this article is strictly research based and doesn’t in anyway reflect the author’s personal bias. This article shouldn’t be considered as an endorsement to any of the brands mentioned. This article doesn’t represent an investment advice to the reader.
As you well know, I’ve covered some interesting articles on this platform and as is custom with me, I’ve reflected on the possible viable avenues to create earnings from this industry (you can blame Arsenal’s former manager Arsene Wenger for making me think this way haha).
The business of sport betting is a huge one worth considering guys. You probably know at least one person who spends time betting. It’s no wonder why one of the most popular company in Nigeria by brand equity in 2019 is
Bet9ja given their headline sponsorship of the much talked about Big Brother Show. This year 2020, we can see betway taking over the sponsorship. There is a reason for this you know?
Let me walk you through a few jaw dropping stats to give you context:
- About 3 years ago, the betting industry globally made half a trillion dollars, way larger than Nigeria’s GDP.
- In Nigeria alone, the industry is a 4 billion naira plus a day money spitting machine
- The average agent of a bookmaker (the likes of Bet9ja, Nairabet et al) in a good location can make an average of 50k weekly in commissions with this he can easily employ 2 people and pay them way above the minimum wage.
- More than 40 million Nigerians place bets every weekend This is not inclusive of multiple bets made by individuals and doesn’t take into context bets made on week days.
- Bet9ja is among the top three most visited sites in Nigeria in 2019.
- During on-seasons (July/August – May/June), a minimum of 300 people walk into an average agent’s shop on a weekly basis depending on location and population size especially the target demography.
- The average turn over of a bookmaker per operational city is well over 250 million naira monthly with an average profit margin of 15%.
Now these numbers indicate a viable stream of opportunities for those who are not necessarily sport fans but for those who are disciples of numbers and data driven business opportunities.
(It is not limited to sports alone as people bet on many things. I recall that during the Nigerian election in 2015, NairaBet ran odds per the candidacy of the presidential aspirants at the time and people cast their lots on their preferred choices)
The cost of setting up shop isn’t crazy, and people of all classes spend time and money on betting. From the gateman who wants to bet N100 to the big man that wants to bet N500,000 on one game. Your business could be setup to receive a fair share of this booming market.
There you go, I have shared some interesting statistics for your perusal. Over to you..
Victory Odunjo is passionate about people, growth, and development. He has worked across various sectors with top tier organizations like MTN, Stanbic IBTC, and others. He has founded a number of startups and NGOs. Over the years he has helped several notable brands to improve their profitability. His writings and speaking sessions with individuals and business owners make him highly sought after.