How Gaming Industry Operators Are Coping with Naira Scarcity

Nseobong Okon-Ekong reports that operators in the gaming industry are affected in diverse ways by the enduring difficulties in getting cash for their day-to-day transactions

In the last few days, Nigerians have been faced with diverse harrowing experiences arising from scarcity of petrol and change in the design of three currency denominations of the naira. The Central Bank of Nigeria (CBN) had announced that it was phasing out the old N200, N500 and N1,000 with new banknotes. 

The initial date to stop using the old naira notes as legal tender was extended by another 10 days, which ends tomorrow, February 10. However, conflicting information from the CBN has led to an avoidable crisis. With the approaching national elections, beginning with casting votes to elect a new president on February 25, many have accused politicians of manipulating the banking system to mop up cash with which they intend to buy votes.

Ordinary citizens have been increasingly frustrated as they are unable to get the new naira either from the banks or automated teller machines (ATM). Where available, the new naira notes are sold between 10 per cent and 20 per cent. For instance, point of sale (POS) operators take that much percentage from customers for transactions. 

Combined with the petrol scarcity, the difficulty of getting cash to meet day-to-day expenses is reported in every area of the economy.

In varying degrees, operators in the gaming industry are no less affected by this crisis. Reacting to how the Naira scarcity is affecting operations, the Deputy Country Manager of PariMatch International, Mr Oyindamola Michaels, posited that the difficulty in getting cash had not hindered its business in any way. 

“We are not doing retail,” he said.

This view was, however, moderated by Mr Alexander Ezekiel, Country Manager, Melbet. 

“It is sad to see the current situation Nigerians are facing due to the unavailability of cash, most especially the new notes. The conventional betting system, mostly used by the lotto and sports betting players in Nigeria, is one that requires the physical exchange of naira and kobo,” said Ezekiel. “Hence, the unavailability of the naira would heavily affect sales and operations of the business, especially for companies that heavily rely on these point of sale.”

Ezekiel justified his position and suggested ways of tiding over the current difficulties, noting that “for a smooth operation of the betting business, the process of collection and disbursement (deposit and payment of winnings) should not be disturbed.” 

He added, “Conventional companies should consider integration with payment gateways to make this process easy for players at their shops.

For Melbet, having projected into the future, we have been able to put a complete online betting system that is tested and trusted, where players can easily deposit into their wallets regardless of the time or day, and a seamless process that will allow you to withdraw your winnings into your bank account without any tussle and allow players handle their daily money demands.”

The Executive Secretary of the trade group for sports betting companies, Association of Nigerian Bookmakers (ANB), Bimpe Akingba, introduced other areas of concern that gaming industry operators are battling with. “Operators, especially online operators, don’t pay winnings by cash so the Naira scarcity isn’t affecting in that regard. However, in my opinion, those in the retail space will be affected because there will be things they need to get (minor expenditures) for operational purposes e.g fuel, photocopy or printouts, etc.,” explained Akingba.

She also pointed out that it might have reduced the number of customers, especially those who play with minimal sums like N1,000 and below, stressing that “there might also be some minor winnings which they ordinarily would have paid from their daily sales which might be difficult now since even customers have difficulty accessing cash.”

At the time of this publication, the spokesman for the apex regulatory body for the gambling industry in Nigeria, National Lotteries Regulatory Commission (NLRC), Mr Magnus Ekechukwu, said his organisation had not received complaints relating to naira scarcity either from operators or players. 

He stated that “most payments are made online.”

Ekechukwu added, “Players have their gaming wallets from where they play, and to which winnings are remitted. Though many also still play at gaming centres where cash can be collected. However, we don’t have any report yet as to cash situation either with players or operators.”

ADVISORY: 18+ PERSONS BELOW 18 YEARS SHOULD NOT PARTICIPATE IN BETTING, LOTTERY ACTIVITIES