With smartphones, fintech and young users driving the surge, echoing the regulated growth seen in Brazil.
Nigeria’s gambling sector is undergoing rapid expansion, with the online market alone forecast to hit $500m in revenue by the end of this year. According to a report by Ainvest.com, the industry has been growing at an annual rate of 16 per cent since 2023, when revenues stood at $400m. The figure does not include land-based gambling, focusing exclusively on digital betting platforms, including online casino games and sports wagering.
Sports betting remains the dominant segment, accounting for nearly 80 per cent of all online activity. Platforms continue to attract millions of users with the Lagos State Lotteries and Gaming Authority attributes this momentum to technology. Chief executive Bashir Abiola-Are said the market is “on an upwards trajectory thanks to technologies such as fintech,” pointing to QR-code payments and mobile wallets that allow players to place bets directly from their smartphones.
Most participants in Nigeria’s online casino and betting scene are aged between 18 and 35. Industry estimates show that nearly 90 per cent of bets are placed on mobile devices, supported by the country’s 141 million internet subscriptions and a 60 per cent online penetration rate. Payment companies like Flutterwave, Paystack, OPay and PalmPay have further accelerated this shift by offering fast, user-friendly services. Even those without access to traditional banking can participate through systems provided by the National Inter-Bank Settlement System.
The rapid growth resembles developments in Brazil, where the first half of 2025 marked the beginning of operations under a new regulatory framework. More than 17.7 million Brazilians placed online bets during the period, generating R$17.4 billion in revenue for licensed operators. A total of 78 companies and 182 brands now hold authorization to operate in the country, each paying R$30 million for their license. Regulations also introduced strict consumer protection rules, such as mandatory identity verification via CPF and facial recognition, as well as restrictions on credit offers.
According to research from an online casino in Brazil, betting activity is strongly concentrated in states with large urban populations and higher economic output. São Paulo leads the way, combining more than 46 million residents with a per capita GDP above R$51,000, making it the country’s most active hub for online betting. Rio de Janeiro follows closely, with over 17 million inhabitants and a solid per capita GDP of R$43,000, sustaining a robust betting market.
Minas Gerais and Bahia, due to their sizable populations, also contribute significantly to overall activity. States in the South, such as Paraná, Rio Grande do Sul and Santa Catarina, register notable engagement as well, benefiting from both higher purchasing power and strong sports traditions. Together, these regions illustrate how a mix of population density and economic strength defines where betting is most prevalent in the country.
By comparison, Nigeria’s online casino and betting industry is expanding in a less regulated environment, which raises questions about sustainability. Analysts note that Brazil’s experience demonstrates how clear rules and consumer safeguards can support growth while minimizing risks. National officials there emphasize that gambling should be approached as a form of entertainment rather than a financial strategy.
Responsible gambling remains a central concern. Specialists warn that identifying the signs of problematic betting is as important as understanding the opportunities created by the sector. Feelings of anxiety, guilt or frustration related to gambling, accumulating debt, or the urge to chase losses are key indicators that habits may be turning harmful. Recognizing these signals and seeking support can prevent further harm. Education campaigns increasingly highlight the importance of knowing when to stop, promoting safer play across both online casino and sports betting platforms.
As Nigeria’s online gambling sector races toward the half-billion-dollar milestone, the combination of mobile technology, fintech and a young user base continues to fuel growth. Yet its future may depend on how effectively it can balance expansion with responsible play, ensuring that the industry develops on a sustainable and consumer-focused path.
