Bitcoin versus the Naira. Photo: WeeTracker
Online gambling is on the rise in Nigeria, and the country’s natural affinity for cryptocurrencies could help to grow the industry across the country and beyond.
Nigeria is one of the global leaders in Bitcoin, third behind America and Russia, with an estimated $600 million traded in the last five years. Other cryptocurrencies, such as Dash, Ethereum, and Ripple are also popular in Nigeria. According to Statista, 32% of Nigerians use cryptocurrencies.
As compliance laws have cracked down on the use of credit cards for online gambling, e-wallets and cryptocurrencies have come to the fore as fast and convenient payment methods which increase the accessibility of international online casinos for overseas players.
Accessibility
There are already many reputable international casinos that accept players from Nigeria and many are cryptocurrency-friendly. Some online casinos offer currency converters, from Nigerian Naira into EUR or USD, but cryptocurrencies can be used globally, with no need to convert the initial currency. According to datareportal.com, Nigeria saw a huge increase in internet users between 2020 and 2021 by 19 million (22%) and the number of mobile connections increased by 17 million (10%). Cryptocurrency use
Speed
Another advantage to using cryptocurrencies at online casinos is the speed of payments and withdrawals. Whereas traditional payment methods such as bank transfers and credit/debit cards could take over a week to be processed, cryptocurrencies are generally immediate.
Bonuses
Many cryptocasinos have begun to offer rewards and bonuses to players using cryptocurrencies. Predominantly based around Bitcoin, these incentives encourage players to use cryptocurrencies to benefit from specific welcome offers or regular promotions.
Tax Rules
In Nigeria, as elsewhere, gambling is defined as participating in games of chance, which are illegal to bet on, and games of skill, which are not. Winnings from games of skill are not taxed. While taxes on sports betting contribute significantly to the global economy to the global economy, the current lack of regulations means the country’s government is potentially missing out. These rules mean that certain casino games and slots, cannot be played at Nigerian casinos, making overseas sites more appealing for their greater game selection.
Virtual Fantasy Sports
With taxes on sports betting winnings for Nigerians, and a huge fan base for international sports such as the English Premier League and Spain’s La Liga football leagues, fantasy sports are also becoming more popular with Nigerian bettors. Throughout the English and Spanish seasons, Nigerians like to bet on football, often daily. With the emergence of virtual sports, they can place bets during the offseason and are not subject to weather or other restrictions.
In February 2021, The Central Bank of Nigeria (CBN) imposed a cryptocurrency ban in an attempt to curb illegal activity, but cryptocurrencies can still be traded in peer-to-peer transactions or via the use of overseas accounts.
The use of cryptocurrencies help to navigate a variety of issues for the Nigerian-based gambler and could play a key role in the growth of gambling in the country. Make sure you are aware of the current laws and restrictions before using an overseas site.