The National Gambling Board (NGB), South Africa’s gaming regulator, has released a financial report dedicated to the market’s results for the FY ending in March 2024. During this period, local players have wagered R1.14 trillion (approximately $64.3 billion), resulting in GGR of R59.3 billion (about $3.3 billion).
Rapid Growth of the Sportsbook Sector
Over 60% of the total industry revenue was generated by betting projects operating in the country. The rise of internet platforms has caused this surge. The segment’s income surpassed that from casinos by more than twice as much.
Many prominent names work in the niche:
- Betway;
- Hollywoodbets;
- SunBet, and others.
These brands are certified by provincial authorities and offer a mix of entertainment products. Their assortments include wagers, slots, live table games, etc. Such a variety shapes accessible and exciting experiences for punters in the RSA.
The NGB forecasts that sportsbook revenue will grow at a rate of 20% yearly through 2027.
Need for Online Casino Regulation
Despite strong demand for iGaming in the country, only bets on horse racing and traditional athletic disciplines are permitted online. Still, local operators leverage the provincial licensing loophole to offer digital versions of slots and similar content.
Industry representatives have attempted to introduce bills, such as the National Gambling Amendment Act, to legalise internet real-money entertainment at the national level. Nevertheless, all the initiatives have been rejected at the parliamentary stage.
Rise of Mobile-Driven Experiences
Amid the increasing number of platforms available for play on portable devices, the population has quickly developed an interest in such offers. New faces among social media influencers also affected the demand for mobile gambling.
Other factors that have increased the niche’s popularity:
- ease of access;
- cashless payments;
- eye-catching advertisements.
The pandemic-related restrictions have also fueled the rise of this vertical. Finally, global digitalisation became another factor contributing to growing interest.
At the same time, South Africa’s market experiences increased risks of developing gaming addiction among the population. Therefore, operators aiming to work in this country are strongly advised to invest in responsible play practices and accurately monitor the audience groups they target.
Online Boom in the RSA: Benefits and Risks
The internet gambling business in South Africa generates significant tax revenues for provincial authorities.
The NGB’s report revealed the following figures for the FY:
- Western Cape has collected R1.46 billion;
- Gauteng — R1.15 billion;
- Mpumalanga — R890 million.
Bookmakers are obliged to pay nearly 7% of their GGR, while casino owners are subject to higher fees of 10%.
Despite some legal inconsistencies, iGaming platforms flourish amidst the spread of digitalisation. However, representatives of the land-based segment are worried about their industry share. These enterprises put a great deal of effort into staying afloat, and many achieve notable success. For instance, SunBet’s income increased 4 times to R733 million by 2023.
At the Casino Market studio, you can learn more about the situation in South Africa’s gambling sphere and order the development of a turnkey project.
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