KYC trends in African Sports betting and iGaming markets: embracing national identification numbers

The African iGaming and sports betting markets are booming, with an expected market volume of $2.36 billion by 2028. This surge is fueled by a young, tech-savvy population and an increasing reliance on mobile technology.

But as the market grows, so do concerns about regulation, security, and integrity. One of the most significant shifts we’re seeing is in the area of Know Your Customer (KYC) protocols—specifically, the move from using mobile numbers for verification to utilizing national identification numbers (NINs). So, how will this change impact the landscape, and what does it mean for you?

Let’s start with a few questions:

• Could the adoption of NINs enhance the security of African iGaming or Sports betting?
• What challenges might operators face in transitioning to NIN-based KYC systems?
• How will this shift affect user experience and trust in online platforms?

The past: minimal impact, relying on mobile numbers

In the past, KYC procedures in African iGaming or Sports betting and sports betting markets often relied on mobile telephone numbers. While this approach was simple and accessible, it left the door open for fraud and underage gambling. Take Nigeria, for example: the use of fake credentials, identity theft, and other fraudulent activities became rampant due to weak KYC enforcement. Mobile numbers alone just weren’t enough to guarantee the identity of players.

? Scenario 1 (Low impact): Had mobile numbers continued to dominate, we’d likely see ongoing fraud and increasing distrust in the system, making it harder for the industry to attract global investors and partnerships. Without robust verification, operators would face regulatory backlash and possibly even market shrinkage.

The present: moderate intervention with NIN integration

Fast forward to now. The introduction of national identification numbers (NINs) for KYC is already changing the game. In Nigeria, for example, this new system is making it harder for underage players and fraudulent users to slip through the cracks. By tying accounts to official government-issued IDs, operators can more accurately vet players, providing a safer and more secure environment.

? Scenario 2 (Moderate impact): In today’s market, NIN integration is solving many issues that plagued the industry. However, it’s not without its challenges. Some African nations lack the infrastructure to effectively implement NIN-based KYC, and public trust in government-issued IDs isn’t universal. If operators fail to adapt, they’ll struggle to provide a seamless user experience and might lose customers who are hesitant to share sensitive data.

The future: full intervention, with comprehensive NIN-based KYC

Now, what if African markets fully embraced NIN-based KYC across the board? The potential is huge. Beyond just enhancing security, NINs could pave the way for more sophisticated regulatory policies, greater market stability, and even tech innovation. Think about how AI and blockchain could integrate with NIN systems to further secure platforms and improve data transparency.

? Scenario 3 (High impact): Full NIN integration would likely transform African iGaming or Sports betting into a more trusted, structured, and attractive space for global stakeholders. Operators who invest in upgrading their systems could lead the market by providing an ultra-secure, user-friendly experience. The long-term payoff? Increased player trust, reduced fraud, and sustained market growth.

Real-life example: Nigeria’s embrace of NIN for iGaming or Sports betting

Nigeria’s move towards NIN-based KYC is a perfect example of how varying levels of action lead to different outcomes. Before NINs, lax KYC systems allowed fraud to flourish. Despite the clear regulations, compliance challenges persist. Nigerian banks have reportedly lost around N9.5 billion in 2023 alone, with betting platforms being one of the tools used by fraudsters. But since the introduction of NINs, operators have reported fewer underage players and fraudulent activities. And while challenges—such as convincing customers to trust government IDs—remain, Nigeria’s progress shows what’s possible when the right tools are in place.

The shift to NINs is also attracting international attention. With better security measures, African iGaming or Sports betting is becoming a more appealing destination for foreign investment, helping solidify Africa’s place on the global stage.

To conclude, the transition from mobile numbers to national identification numbers for KYC in Africa’s iGaming or Sports betting and sports betting markets represents a crucial shift towards a more secure and trustworthy industry. Although the challenges—such as infrastructure gaps and public trust—are real, the opportunities are vast. By embracing this change, operators can not only protect their platforms from fraud but also attract more investors and build stronger relationships with players.

So, here’s the big question:

• How prepared are you to invest in NIN-based KYC systems?
• Could enhanced security lead to a larger player base and more market stability?
• What steps will you take to balance user experience with regulatory compliance?

About B2Tech

B2Tech is a leading omnichannel technology solutions provider to the Sportsbook & iGaming industry with a strong presence and focus on emerging markets. We offer a comprehensive suite of iGaming solutions to Africa and emerging markets, including efficient data platforms, seamless payment processing, advanced CRM, streamlined back-office management, strategic affiliate networking, and dynamic bonus engines. These tools are designed to optimize sportsbook & iGaming operations, enhance user engagement, and drive competitive growth.