University of Lagos

School of Postgraduate studies

Master of Business Administration (MBA)

Part-time, Stream 1

Course Title: Fundamentals of Marketing

Course Code: MBA 802

Dr. Ayo Oniku

By: Group 1 & 10

September, 2019
Full Name Phone Number Matric Number
Ugonna Ugochukwu Nzubechukwu 08068115650 169041045
Justus Eze Ekelaka 08037460282 179029085
Gbemisola Rabiat Tiamiyu 08058455917 189029071
Egbuokporo Godfrey 07061278455 189029066
Konboye Tarebayei Joseph 07061126327 189029037
Oni Olalekan Olasoji 08034446142 189029190
Babatunde Onoshiagbe Jeremiah 08092883725 189029073
Ojo Idowu John 08038469868 189029044
Chukwudieze Samson Ifeanyi 07036985881 189029067
Anthony Folusho Awofeso 08173240566 189029110
Longe Lookman Olanrewaju 07031154633 189029115
Okafor Azikiwe .P. 08182094071 189029135
Adefisayo Pitan 09030829299 189029075

Full Name Phone Number Matric Number

Udoh Kennedy Ekene 08039331457 099041017
Osinuga Oluwaseun Daniel 08023393461 090805049
Olarinde Kayode James 08022003024 189029146
Nnabueze, Stephanie Blessing 09098597857 189029249
Francis Ogbaudu 08091755388 189029107
Olusola Deborah Yinka 09030235469 189029111
Kenneth Ochoche Sule 08059297749 189029155
POPOOLA BOLAJI TOBI 07060471847 179029231
Obi chidalu sylverline 07066265632 189029232
Adelowo Abibat Oluwatosin 08054055960 189029065
Igbokwe Maryrose Nwakego 08037168837 189029288
Adegoke Adesokan 07012317898 189029117
Odumosu Sunkanmi. 07038594590 189029260
Egwono Oyewole 0809 945 3622 149029139
CASE STUDY:

Betty S.A is a South Africa betting and gambling company seeking entrance into
the Nigerian Market. The company is seeking your expertise in market analysis of
buyer’s characteristics that influence betting in Nigeria for their product
development and other marketing strategy.

INTRODUCTION
Betting is the act of placing a wager. Whether that's laying chips on the table,
putting a certain amount on a certain outcome with a bookmaker, or buying stock
in a company that you think will become more valuable, the act of committing
money to be held pending an outcome (where if it happens, you get paid, and if it
doesn't, you lose your bet) is betting. If you are putting up money to possibly earn
more with it based on the outcome of a future event, you are betting.

Gambling is the act of betting, but on an uncertain outcome. Good examples

include buying a lottery ticket (you don't know what numbers will come up),
choosing red/black on roulette (you don't know where the ball will land), or
selecting a winning horse (you don't know who is going to cross the finish line
first).

If the outcome is certain (or close to certain), though, then your bet is hardly a
“gamble”. For instance, say you have inside information on a sporting event (e.g.
The quarterback just caught his wife cheating on him), or on a stock (e.g. They're
about to get sued and it hasn't hit the news yet). Where a bet on the outcome of that
game, or on the value of that stock might be a gamble in other cases, it's not a
gamble (or not as much of a gamble) in these cases because the outcome is either a
lot more certain, or completely certain. It may look like it's gambling. But to those
who know what they're doing, and who can exploit information inefficiencies, it's
not gambling at all.

All gambling involves betting, but not all betting is gambling.

Why do many Nigerian youths engage in Sports betting? Here are the reasons why.

1. Unemployment: The high rate of unemployment in Nigeria has been responsible

for the wild spread of sport betting in Nigeria, with so many youths pouring their
money into it to get returns on investment. It is a two-way thing; others may have
lost out but a lot of them have made huge cash. And it has put food on the tables of
many as well.

2. Influence: Sports betting is pervasive such that it is viewed in Nigerian society

as ‘normal thing – ‘almost everybody around you is involved and this serve as a
ready influence.

3. Love of Sports: The love of sports by many Nigerian youths is also the reasons
behind sport betting. Nigerians are sport lovers.

4. More engagement in sports: Besides the money a lot of people make from sport
bettings, it has also polished their engagement in sports, in that they keep close
tabs on games that they have staked on.

5. Economic Condition: The economic condition has given way to why many
Nigerian youths engage in sports betting. The environment is not safe for
businesses. Some don’t even have such enough huge capital to start up. They rather
go for sport bettings- that they don’t have to spend much on.

6. It is a Pot of Gold: Access to fast, risk free cash is one of the reasons many
people engage in sports betting. It is stress free, and direct access to cash. Greed
also comes into play. It could be tagged as a ‘business’ that you invest with as little
as N50 to win as much as any amount, if the predictions are correct. Who wouldn’t
be enticed with such bait?

REASONS FOR INCREASED BETTING IN NIGERIA

1. Betting Bonuses

Just like casino players, most of the sports betting firms also offer odd bonuses to
their new players who want to play on odds instead of online casino. In most
cases, the bonuses amount to 100 percent, which implies that the sportsbook
doubles your first deposit. Some betting companies offer a different form of odd
bonus like free bets to their customers who play on particular leagues or in
conjunction with various promotions. All the bonuses attract many new players to
join hence resulting in an increased number of people betting in Nigeria.

2. New Betting Sites

Similar to casinos, there is a full list of betting sites in Nigeria launched by the
betting firms. These sites offer different gambling experience that gives players a
unique experience. In addition to the game offers and bonuses, some of the new
sites allow players to watch the games live. The offers also create a great
experience when it comes to live betting and watching the game at the same time
despite where you are.

3. Best Odd Bonuses

These bonuses are usually given in the form of free money to the new and regular
players as a reward from the betting firms for completed performance. This gives
the players some extra cash to use in playing, thus bringing further entertainment
and enjoyment. New players can register to get these odd bonuses.

4. Cashback

Most of the gaming companies offer cashback bonuses to their players, this means
that even if you make a bet and lose, you will get the same amount but in the form
of a bonus which you can use to bet in a new game. This bonus applies to both the
new players and the existing players.

5. Betting Bonus VIP Players

These are bonuses given to the VIP player whenever they make deposits and the
bonus apply to certain games or events. They can also be in the form of risk-free
bets, whereby the player gets an amount of the online betting company without a
deposit requirement.

On the state level, the Lagos State Lotteries Board (LSLB) has issued over 40
licenses to operators (LSLB, 2017). The board has started to implement measures
to strengthen the regulatory framework through increased transparency. These
measures include providing and updating their data which includes operators
whose licenses have been suspended. Other states are also realizing the revenue
potential of the gaming industry and are taking a more aggressive role in regulating
gaming activities. For instance the Edo State Internal Revenue Service (EIRS),
which regulates the activities of all gaming operators in the state, has instructed all
operators to update their licenses and offset any outstanding tax liabilities. The
EIRS also plans to list operators with active licenses in the near future (EIRS,
2017), in a move designed to reduce illegal gaming activities in the state. At the
Federal level, the National Lottery Regulatory Commission (NLRC) has also
issued licenses to operators in the industry.

Currently, the overlap of regulatory functions between the state and the federal
level is an issue, as operators are sometimes levied twice. This discourages entrants
of new operators and future investments.
 BACKGROUND OF GAMBLING/BETTING IN NIGERIA
Leading up to the new millennium, betting pools, lotteries and slots were the most
popular form of gambling in Nigeria. Although various gambling authorities, laws
and policies were already in place (including the Casino Taxation Act of 1965, the
Lagos State Lotto Authority, a Lotteries and Pools Betting Law), gambling across
the nation was largely unregulated.

The Gaming Machines (Prohibition) Act of 1977 even made the import and
owning of gaming machines (slots) illegal in Nigeria, with the sole exception of
licensed casinos. However, the country's gambling landscape began to change in
the late 1990s, with the passing of new policies and laws to better govern and
regulate gambling in Nigeria. These included the Constitution of the Federal
Republic of Nigeria (1999), Taxes and Levies Act (1998), Casino and Gaming
Law of Lagos State (2004), the National Lottery Regulatory Commission (2007).

These new laws and polices also paved the way for the privatization of certain
gambling sectors in the nation. In addition, as internet and mobile technology has
become more widely available in Nigeria, so has online and mobile gaming. The
result is that post 2000, gambling in the nation is split into 5 categories which are
(from biggest to smallest) betting, lottery, promotions, slots and pools.

Online Sports Betting in Nigeria

Some of the popular online betting brands are highlighted below;

Nairabet was Nigeria's first domestic online sports betting site. The platform was
started by the popular Nigerian entrepreneur Otunba Akin Alabi. This brand boasts
well over 100,000 customers. It offers sports and live betting and the option to play
casino games. It is licensed and regulated by the Lagos State Lotteries Board. You
can make deposits/withdrawals to and from your account at any of its outlets in
Lagos or via its website.

Winners Golden Bet is an online sports betting site based in Lagos. This online
sportsbook allows Nigerians to wager on many different football fixtures,
basketball, tennis, baseball, virtual dog racing and virtual football leagues, to name
a few betting markets.
Merrybet is another licensed Nigerian online bookmaker, which offers a wide
choice of sports betting markets including football, rugby, tennis and darts. As a
Nigerian-based sports betting website, they accept bets in Nigerian Naira (NGN).

Other sports betting sites that cater to the Nigerian market include; Lion Bet,
Access Bet, Naija Bet, Sure Bet, BetDey, 1960 Bet, Fortune Bet, Billion Naira Bet,
Betwin9ja, Bet9ja.com, Nairabet.com, 1xBet.ng, sportybet.com, Betking.com etc.

Because of Nigeria’s tumultuous political history, only in the last decade or so has
the West African nation begun to embrace sports betting in its various forms. For
instance, Nigeria’s first sportsbook was only registered around 2007, and since
then the pastime has exploded. In 2014, for instance, reports emerged that
Nigerians - predominantly punters aged between 18 and 40 - were spending a
staggering N1.8 billion on sport betting every day, and that figure is even higher
today. In fact, it’s thought that over 60 million Nigerians partake in betting.

That equates to just over a third of the country’s entire population, and today that
figure has risen due mainly to the massive growth of the internet. As of 2015, more
than half of its citizens had access to the internet, and where you find the internet,
you’ll find online sportsbooks. New generations of Nigerian sports betting fans
were fast discovering the ease, convenience and speed of online bookmakers - both
Nigerian and international. Where once they had to trek to a betting shop or kiosk,
now their computer or smart device has become the kiosk.

In fact, online bookmakers have changed the face of sports betting in Nigeria
forever. While many punters still prefer shops, many others have become loyal to
betting websites as they are plentiful, safe and easy to join and use. Plus they offer
competitive odds and betting lines.
Gambling Legislation and Regulation in Nigeria
Citing chapter 22 of the Criminal Code Act (1990), the Nigerian government has
defined legal and illegal forms of gambling. Legal forms include betting, lotteries,
racing, pools and selected casino games (including slots, Blackjack and Roulette).
Illegal forms include non-skill based card games and other "games of chance"
considered unfavorable to players.

Nigeria's various gambling laws are applicable to gambling operators and players,
although the penalties and punishments for operators are far more serious. In
addition to the Criminal Code Act, there are various other gambling laws that
govern the operation of gaming machines in Nigeria. Currently none of Nigeria's
gambling laws are pro-online casinos (online betting, yes). This means it is illegal
to own or operate online casinos within the country. That said, there is little the
government can do to stop citizens from playing at offshore online casinos (which
accept Nigerians), including those featured right here on this site.

Regulatory requirements for betting in Nigeria

The National Lottery Act 2005 and the National Lottery Regulation 2007 are the
legislation guiding the lottery business in Nigeria and are enforced by the National
Lottery Regulatory Commission ("the Lottery Commission").

1. Registration at the Corporate Affairs Commission

2. License form the National Lottery Regulatory Commission

The following are the requirements for incorporation of lottery Company at the
Corporate Affairs Commission:

 The Promoters of the Company must obtain an "Approval in Principle" from

the Lottery Commission and file same at the Corporate Affairs Commission
alongside;
 duly stamped Form CAC2 (Particulars of Shareholders) ;
 duly stamped Memorandum and Articles of the Company indicating lottery
business in its objects;
 Completed Form CAC2.1 (Particulars of Company Secretary) ;
 Completed Form CAC3 (Particulars of Registered Address of Company) ;
 Completed Form CAC7 (Particulars of Company Directors) ; and
 Completed Form CAC4 (Statutory Compliance with the provisions on
CAMA)
  The minimum share-capital for a lottery business in Nigeria is 100, 000, 000
(One Hundred Million) shares.

A lottery License is required to set up a lottery business, and it is valid for 10

years. Listed below are the requirements for obtaining a lottery Licence;

 An application addresses to the Director General of the Commission

expressing interest in a named lottery business in Nigeria with applicable
fee;
 Obtain and fill the prescribed application form and return the completed
form along with the following documents;
 Certificate of Incorporation;
 Copy of Memorandum and Article of Association of the lottery Company;
 Details of Board of Directors of Company;
 Profile of the Lottery Company;
 Detailed Rules of the lottery games.
 Bank reference
 Details of the Company's human capital base including accounting,
administrative and security systems.
 Evidence of clearance from relevant regulatory agencies;
 Technological evidence to operate the online lottery business;
 Evidence of share capital which is a minimum of N 100, 000, 000 (One
Hundred Million) shares.
 An operational base for the lottery business.
MARKET ANALYSIS AND BUYER CHARACTERISTICS OF
TARGET MARKET

Characteristics of the target market

“Almost all compulsive gamblers have had at least one big win and believe they’re
bound to have another – soon.”
Psychologists put compulsive gambling in the category of an “impulse disorder
which has the following chief symptoms which characterize the target market:

1. An inability to resist an impulse

2. causing harm to oneself and others because of this impulse,
3. Increased tension prior to the action and
4. Gratification and a sense of release at the time of the action”.

A person with impulse disorder “tends to dislike rules and responsibility. Guilt or
regret may or may not be part of his emotional makeup”.
“He may appear sociable, but he seldom forms deep attachments. He needs
recognition and adulation. He lives for the present. He’s often superstitious, prone
to believe in signs and omens, and refuses to think about consequences.”

Challenges affecting the Nigerian gaming industry

Regulation

The overlap in the regulatory function between the Federal and state levels is a
major challenge facing the industry in Nigeria. As such, an overhaul of the
regulatory environment is required to enhance oversight and improve inconsistency
in enforcement of license generations and payment of levies, development and
revenue generation. At the state level, the necessary regulatory framework will
need to be set up to properly regulate and govern the gaming industry for effective
transparency of betting operations.
Taxation
There are a wide range of approaches taken by regulators and fiscal authorities
across the globe to taxing gaming activities of operators. One major area of focus
is the determination of what constitutes taxable profit (i.e. the tax base) and the
applicable tax rate. In Nigeria, the interpretation of what constitutes net gaming
revenue or the tax base remains unclear and largely inconsistent. This
inadvertently has a direct impact on the applicability of taxes such as value added
tax (VAT) and withholding tax (WHT) (charged by the Federal and State
authorities) on winnings, payments made to foreign partners, etc. Global trends has
shown that sports betting if clearly regulated, is a major sector for the generation of
tax revenue by the government. This has however not been the case in Nigeria as
the industry remains largely unregulated despite the existence of several Acts. As
such, the issue of multiple taxation and licensing continues to plague local
operators.

Cyber - Security

Providing a safe and secure gaming environment to players is vital to the

continuous success of the Nigerian gaming industry. Security of online
games/plays is a growing concern especially with the increasing use of electronic
channels for gaming. Online Lottery and Sports Betting operators’ process high
volume of players’ transactions and it is critical that these operators ensure that
they keep players personal data secure and protected from cyber-attacks.

Cyber criminals may compromise a platform by installing malicious software

(malware) to gather information about players from within their account. This
information could include cardholder data, login details, bank account details,
betting history and other personal information. Also, a denial of service (DoS)
attack could be carried out which could disrupt the performance of the gaming
platform or even make it unavailable, leading to customer dissatisfaction, service
downtime and loss of gaming revenue.
Foreign exchange issues

The recent foreign exchange crisis resulting in the weakening of the Nigerian naira
has placed a severe strain on businesses in Nigeria. The software and hardware
solutions for gaming, used by operators are mostly sourced from foreign providers
and as such, operators tend to pay more than previously negotiated due to
fluctuations in the currency.

Negative impact of gaming

Game of chance in Nigeria generally thrives through word-of mouth advertising

and most punters in the country get involved in gaming through information from
close relatives, peers and colleagues who have won high returns with little stakes
placed on bets.

With the nature of the sport and the passion and energy generated, there is always a
sense of addiction associated with this activity, and addiction is the primal force
behind the stigma generally associated with gaming in Nigeria. With the thriving
opportunity, the expansion in the gaming industry is deterred by strict religious
beliefs in the country against the game of chance.

Ineffective management structures and poor corporate governance

Some operators within the gaming industry lack inadequate structures to support
the model of the business. A number of the companies that make up the gaming
space evolved from the old pool culture, and these businesses were managed with
limited financial knowledge depending on the clientele base. Thus, significant
losses arise as a result of failure in determining the odds accurately, expansion
strategy, tax planning etc. Without good management structures or clearly defined
strategies for the business, operators struggle to fulfill obligations, expand and
attract foreign direct investment at the right price.
PRODUCT DEVELOPMENT AND MARKETING STRATEGIES
THAT CAN BE ADOPTED IN THIS MARKET.

The betting and gambling industry is very much aware of the fact that no business
can thrive or flourish by ignoring the changing demographics and remaining static.
This is why existing sports betting companies are constantly focused on modifying
their environment and marketing strategies to make it more appealing to the
younger generation.

Many of the sports betting websites try to attract new users with exciting offers and
cool features which are not available in traditional land-based shops. Some of the
creative marketing ideas used by casinos to promote sports betting and draw the
interest of gamblers are listed below:

Content Marketing

One of the best techniques to promote any business is Content marketing and
gambling is no exception. You should develop unique and engaging content to
promote your sports betting affiliate brand which will attract the target audience.
Examples of content can be like gameplay strategies and techniques for beginners
with proper info graphics that users will find interesting to read.

You can also write about latest game releases from the industry leaders like
BetRadar and Optima who produce a regular stream of well-animated and
graphically-superb online games. You should find out such relevant content which
the players love and prefer to read and you should post this content in the right
forums which have the maximum amount of viewers.

You should first design a really attractive website with targeted content based on
your player habits and preferences. If your content is really interesting and worthy
to read, you can gradually build a good relationship with your customers who will
become your brand ambassadors and start promoting your brand.
Allow other sports betting content websites to use your interesting content in
exchange for backlinks to your website. You can also submit your content to
various online directories and forums which have more audience. This will help in
increasing your website popularity and drive more organic traffic. You should also
focus on SEO and how to distribute your content through suitable channels
including e-mail marketing campaigns, social media, newsletters and press
releases.

Lucrative Bonuses

One of the popular ways to promote sports betting is through attractive bonuses.
Many sports betting companies offer huge welcome bonuses and other rewards to
gain the attention of new users. By offering a welcome bonus equivalent to the
initial deposit made, you can allure many players to sign-up with your website.

Organizing Casino Tournaments

One of the most effective marketing strategies for online sports betting is to
organize online betting tournaments where gamblers go head to head to compete
for big prizes. These tournaments offer the potential for players to win big prizes
and a chance to play for an extended period of time against other players.

Such tournaments can include as few as two players on a single table or up to

hundreds of competing against each other playing a set number of games.

You can organize these tournaments and if you like charge players a small entry
fee to play. The entry fee goes into the prize pool and there are different categories
which include scheduled events and sit-and-go tournaments.

You can also organize the tournaments for online casino games like Poker, Online
Blackjack, Bingo and Roulette as well. This gets your website visitors forge a
community and allow them a space for social gathering and non-gaming amenities
that create a bond with your affiliate brand.
Social Media Campaigns

Young people are more interested in online gambling and they like to share their
gaming experiences on social media. Hence, social media campaigns are one of the
effective ways to promote online sports betting. Your sports betting affiliate
website should be designed in such a way that you use various social media
platforms like Twitter, Facebook and Google+, so you can promote your sports
betting affiliate brand by posting interesting content and useful information about
various promotional events and offers.

Email and Mobile Marketing

You can also send newsletters to your target audience through email about the
upcoming sports betting tournaments, promotional events and any other interesting
content. Many young millennials prefer to place bets from their smartphones while
they are on the move. We recognized this on time so provide mobile gaming
support if you want to attract the younger generation.

Marketing strategies through multiple channels with the integration of mobile and
online media can improve response. You should keep sending Email and mobile
notifications about the latest updates in the gaming industry to your target
audience. You should send follow-up text messages for your Email campaigns
with information about rewards, upcoming online tournaments and free plays
based on the user preferences.

So, there you go – five creative marketing strategies you use to promote your
online sports betting affiliate program.