1win: The Daring New Players Betting Big on Nigeria's Sports Gaming Scene

In a twist that's raising eyebrows across the industry, a wave of ambitious new sports betting companies is flooding into Nigeria's market, defying harsh economic headwinds and a daunting new tax landscape. 

This bold move comes at a time when established players are contemplating consolidation or even exit strategies, making it a high-stakes gamble that's too intriguing to ignore.

1win is one of such daring companies that chose to go against the flow and recently made its debut on the Nigerian i-gaming scene for 3 reasons: 

• First, there are market growth opportunities. The Nigerian gaming industry is rapidly expanding, with a growing acceptance of online betting. This presents an opportunity for new entrants to capture market share. 

• Second, comes the regulation. Despite the new tax obligations recent regulatory developments in Nigeria create a more structured environment for the industry and provide a stable operational framework. 

• Third, it is demography. Nigeria has a large and youthful population with increasing internet and mobile penetration, making it an attractive market for online betting. 

The CEO of the Lagos state Lotteries and Gaming Authority (LSLGA), Bashir Are, shares 1win’s ideology, but is committed to correcting the impression that the recently introduced tax regime is stringent. 

He explains that for the longest time, numerous i-gaming companies got used to tax avoidance and when the time comes to pay up, they run ‘helter skelter’. 

However, Are admits that the current dichotomy which i-gaming companies face in paying taxes at the federal and state levels of government, is in the process of being resolved. 

With the influx of new i-gaming companies like 1win, there is a creeping fear that this may lead to potential market exits of established players due to market saturation.

Are pumps the brakes on that fear and asks those concerned to perish the thought, insisting that “no one is going anywhere”, with the exception of the i-gaming companies that came into Nigeria without a sustainability plan:

“The sports betting operators that are doing really well are less than 20. Those companies that are exiting Nigeria most likely came in with inadequate information and funding. Hence, they were bound to pack up as there was no sustainability plan,” Are told betting news site SportsBoom.com.

“There is still a heavy investment in the gaming industry and as an authority, the LSLGA is committed to ensuring that Nigerians aren’t simply consumers. For instance, in Lagos state, we promote software developers by giving grants. We urge them to develop products that can be placed on international platforms, which would lead to forex earnings, as opposed to simply gambling.”

1win is not interested in being one of the i-gaming companies that figures things out as they go. 

With 7 years of global experience and 30 million players worldwide, their goal is to stand out to Nigerians. By leveraging on several competitive advantages including a reputation for the widest portfolio of i-gaming products and services comprising 15,000 different slots and 700 live games, as well as its own sportsbook and signature poker. 

Image Credits: Cynthia Areh

However, it’s not all rainbows and sunshine for 1win- as one of the ‘new kids on the block’, it’s facing challenges which are most typical for markets including VAT on betting services, withholding taxes on customer winnings, state-specific regulations, as well as market-entering expenses associated with obtaining a gaming license. 

Interestingly, 1win doesn’t see the aforementioned as ‘barriers’, but challenges which don’t deter it.

Balancing innovation and responsible gaming

In light of Nigeria’s large youth population, the need for responsible gaming cannot be overemphasized. 

For this reason, the LSLGA is being intentional about navigating this balance, particularly with new entrants who may be eager to capture market share. 

Are explains that the LSLGA not only enforces terms and conditions to hinder access to anyone under the age of 18, but makes good on effective collaborations like the partnership which it has with the resident doctors of the Yaba psychiatric hospital- they go into schools to campaign against underage gambling. 

He further explains the mandate which the Authority has with i-gaming operators: 

This perspective resonates with 1win, which employs ‘juvenile-preventing measures’ which include mandatory identity verification during the registration stage. 

1win clients can also apply parental control features to further prohibit minors from accessing the platform. These steps ensure that children cannot access the platform and expressly forbid anyone under the age of 18 from engaging in gambling. 

While the LSLGA ensures that new entrants like 1win adhere to its terms and conditions when entering the Nigerian market, the authority also strikes a balance by giving new entrants a relatively soft landing with gestures like a 3-to-6-month moratorium to allow the business to settle before payments start being made. 

When those payments are made to the Authority, provisions like the good cause levy, enables the i-gaming companies to see where the money goes. Are explains: 

“We can show you what we have done with the money that we have accrued in the last 3 years. We have built primary care centers, fire stations, purchased fire trucks, fund Lagos state security trust fund, we fund neighborhood safety corps, sponsor football abroad, youth tennis championship for the last 3 years, paid for 6 kidney transplants, renovated 50 schools, and built 2 brand new schools in the last 3 years,” Are continued. 

1win tows a similar path when it comes to good causes with its Corporate Social Responsibility (CSR) gestures and even though it just made its debut in the Nigerian market in September 2024, the i-gaming company is already exploring philanthropy and charitable opportunities in the local communities and hopes to announce their first initiatives by the end of 2024. 

The sustainability of the influx of new i-gaming operators

The recognition of opportunities amid Nigeria’s economic chaos by the new i-gaming companies is encouraging in terms of the possibility of a bounce back, but just how sustainable is this influx? 

Are makes it clear that just like every other business in Nigeria, the i-gaming industry comes with calculated risks. 

He advises that those who aspire to do business need to pay special attention to “time of entry, the environment risk assessment and mitigation.” 

Are further advises that business aspirants should get better identifying market gaps, using Glaxo Smith Kline’s exit from Nigeria as an example: