Nigeria's Online Gambling Industry Grows 16% Annually Driven by Fintech and Youth

Nigeria’s online gambling industry has rapidly grown into a multi-million-dollar sector, with sports betting leading the charge. In 2023, the industry generated an estimated $400 million and is projected to reach half a billion dollars by 2025, growing at an annual rate of approximately 16%. The majority of online gambling activity, nearly 80%, is focused on sports wagers, with Bet9ja controlling about 6% of the market by the end of 2024. Young Nigerians, particularly those aged 18 to 35, are the primary drivers of this growth, with 90% of betting activity occurring through smartphones.

The surge in online gambling is fueled by the rapid expansion of digital access. As of July 2025, there are 141.5 million internet subscriptions, representing about 60% of Nigeria’s population of 238 million. Estimates suggest that over 60 million adults, or 42% of the online population, engage in online gambling regularly, spending an average of ₦3,000 to ₦5,000 per day on platforms such as Bet9ja, SportyBet, and 1xBet. Over 75% of Nigerian bettors now make their bets using mobile devices.

Fintech platforms play a crucial role in Nigeria’s online gambling boom. The Chief Executive Officer of the Lagos State Lotteries and Gaming Authority notes that the market’s upward trajectory is driven by technologies such as fintech. Home-grown payment platforms, including card gateways and mobile wallets, underpin most major bookmakers. Key partnerships include Flutterwave with Betway, Paystack with NairaBET, and local bookmakers like Bet9ja, 22Bet, and 1xBet integrating various fintech options for deposits and payouts.

Fintech platforms facilitate quick and secure transactions, ensuring that deposits are credited instantly and payouts are processed efficiently. Flutterwave and Paystack offer multiple funding channels, including cards, bank transfers, USSD, and QR codes, with no hidden charges for users. These platforms also support mobile wallets like OPay and PalmPay, allowing bettors to withdraw cash via agents. Fintech services are integrated with Nigeria’s NIBSS Instant Payment System, making all transfers effectively real-time.

The regulatory environment for fintech-enabled gambling is complex. The National Lottery Regulatory Commission licenses online sports betting nationwide, while states like Lagos also regulate gaming. Officials emphasize compliance, including KYC and age checks, but the system is split between federal and state controls, leading to calls for harmonization. Fintech companies have taken steps to distance themselves from fraudulent activities, such as blocking access to Ponzi-style betting schemes and ensuring compliance with KYC and licensing rules.

Despite the growth and efficiency brought by fintech, the human toll of Nigeria’s online gambling explosion is significant. Underage gambling is prevalent, with weak age verification systems allowing minors to place bets easily. Regulators have laws to protect consumers and children, but enforcement remains patchy. The National Lottery Act prohibits anyone under 18 from betting, but digital platforms seldom verify age, and the NLRC rarely follows up on breaches. Operators and regulators need to work together to set sensible transaction caps, implement identity checks, and align federal and state rules to close regulatory gaps and protect vulnerable individuals.