Gamble Aware Nigeria General Manager Gabriel Akpabio has raised concerns over what he describes as “gross malpractice” and the unethical practices of fintech brands that facilitate gambling. Speaking with iGB this week, Akpabio criticized both operators and fintech companies for allegedly bypassing regulations and delivering unchecked betting advertisements in Nigeria.
In the rapidly growing Nigerian market, gambling addiction rates are becoming increasingly problematic, and Akpabio points to these advertising loopholes as exacerbating the issue. The collaboration between fintech companies and gambling operators has allowed gambling promotions to proliferate through apps, which Akpabio argues are poorly regulated. “Fintechs have morphed into extensions of gambling operators, and it’s troubling how no one is addressing this,” he remarked.
The primary concern revolves around apps like Opay, which is a popular personal finance app with millions of users across Nigeria. Users can reportedly place bets directly through the app, despite the fact that Opay is not licensed by regulatory authorities to offer gambling services. This has led to a situation where underage individuals are reportedly bombarded with betting messages, receiving as many as 15 gambling promotions per minute.
Opay Digital Services Limited, alongside another personal finance app, Palmpay, has been embraced by over 30 iGaming companies as a payment solution. While both fintech brands are licensed by the Central Bank of Nigeria and insured by the Nigeria Deposit Insurance Corporation, they are not authorized to advertise or facilitate gambling activities.
Akpabio shared instances where gamblers received an overwhelming number of promotional messages urging them to fund their betting accounts. “One bettor showed us 11 messages he received in a minute, all prodding him to click on an ad for a free bet,” Akpabio noted with concern. He also highlighted advertisements promising rewards, like winning an iPhone, for daily deposits into betting accounts, a strategy he considers dangerous.
The issue, according to Akpabio, is not just the aggressive marketing tactics but also the failure of regulatory bodies to take action. Despite numerous attempts to communicate with the Lagos State Lottery and Gaming Authority (LSLGA), Akpabio says there has been little response. “I’ve reached out at least 22 times this year and sent four letters, yet there’s no significant action,” he lamented.
Last month, the LSLGA launched SafePlay, a national self-exclusion portal aimed at addressing problem gambling. However, Akpabio maintains that gambling addiction continues to rise, particularly among youths who are increasingly exposed through fintech apps. “Over 60 million Nigerians gamble, and more than 14% of these individuals struggle with addiction,” he reported, noting that many underage gamblers are introduced to betting through these platforms.
Nigerian laws require gambling advertisements to devote 15-20% of their airtime to raising awareness about gambling addiction. Akpabio argues that compliance is lacking, and the responsibility should not solely fall on organizations like Gamble Aware or Gamble Alert. He urges regulators and operators to take a more active role in championing awareness and protecting players.
The issue is multifaceted, with another perspective focusing on the potential benefits fintech could bring to the iGaming industry if properly regulated. Some argue that fintech innovation can enhance user experience and provide more secure transactions for bettors. However, without proper oversight and ethical advertising practices, the risks, particularly to vulnerable populations, remain significant.
Critics of Akpabio’s stance might argue that the self-regulation of financial apps could be an effective alternative, suggesting that fintech companies themselves should implement more stringent measures to prevent misuse. They propose that apps could incorporate features like betting limits or age verification processes to mitigate the risks associated with gambling.
Nevertheless, Akpabio’s call to action underlines the pressing need for comprehensive regulation that addresses both the fintech and gambling sectors. Creating awareness about the potential harms of gambling should be a collective effort, involving regulators, operators, and fintech providers in a concerted push towards responsible gaming in Nigeria.
Topics: Nigeria · Responsible Gambling · Gambling Regulation · Online Casino
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