For NPFL clubs betting is king when it comes to front of shirt sponsorships but how does this impact the brands?
Nine-Times NPFL Champions, Enyimba recently signed a multi-year deal with Australian Betting and Crypto Company, Stake.
The deal brings to seven the number of NPFL front of shirt sponsorship deals so far.
Out of the seven clubs, four of the sponsorships are Betting brands.
Kwara Utd, Akwa United, Enyimba and Remo Stars all carry betting brands in front of their jerseys.
This represents 60% of the NPFL front of shirt sponsorship deals by teams.
NPFL Front of Shirt Sponsorship: Betting And The League
Despite the rise in betting brands sponsoring NPFL clubs, there are still short on having enough options for the league.
Sources within the industry categorize the increasing number to the large betting market Nigeria offers.
Also a few of them see it as a way to get a foothold in the country despite lacking offices and inadequate options for bettors.
NPFL and betting expert, Kelechi Onwudiwe believes the league can get more from the deals.
“Their policies towards the African leagues and competitions are discriminatory.
The only markets you see are probably 1X and double chance and maybe one over/under as against European and South American leagues and comps with over 70 markets in some cases.
This puts African bettors at an extreme disadvantage with a very high risk of failure and eventual bankruptcy.”
Does the fault for not having enough games go to the betting companies or the league itself?
Babajimi Ogunlana, a gaming and marketing communications expert feels the league hasn’t done enough.
“No bookie that has the NPFL and certain other ‘highly volatile’ leagues on their platform would allow gazillion options as operates in more developed footballing climes. It’s purely a function of risk management.
The Nigerian football ecosystem hasn’t done enough to ensure football integrity and as such no bookie wants to be left vulnerable.”
Nigeria Betting Market Opportunity
Recent NOI Polls analytics shows Nigerians spend over N730 billion annually on sports betting and at least N2 billion is generated daily.
The data also shows that over 60 million Nigerian punters spend over N3,000 daily placing bet. Also, there are at least 50 betting sites in Nigeria, with the number growing annually.
According to Statista, one of the key drivers of the online sports-betting market is the increasing popularity of live streaming.
Similarly, the integration of sports data analytics into betting platforms is also helping the spread.
These advancements allow bettors to make more informed decisions and engage in real-time wagering, resulting in a more exciting and immersive experience.
Furthermore, the growing interest in niche sports and esports is opening up new opportunities for operators to cater to a wider range of audiences and expand market reach.
Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 9.30%, resulting in the market volume rising to US$367m by 2027.
Statista states that the number of users in the Online Sports Betting market, will amount to 1.3m users by 2027.
Additionally, user penetration will reach 0.4% in 2023 and will hit 0.5% by 2027 according to research.
The average revenue per user (ARPU) is expected to amount to US$268.00.