The Gambling Industry in South Africa 2024

Challenges

Challenging economic conditions and rising operating costs. Financial and mental health risks. Illegal online gambling is difficult to monitor and regulate. The delayed implementation of online gambling legislation. The prevalence of corruption, money-laundering and other types of crime.

Introduction

The South African gambling industry recorded strong revenue growth in the year to end-March 2023, driven the growing popularity of sports betting. The National Lotteries Commission, currently under investigation over allegations of corruption, money-laundering and misappropriation of funds, reported increased revenue. The industry presents societal risks, exacerbated by the prevalence of illegal gambling and unregulated online activities. There has been significant M&A activity and some consolidation in the industry.

Opportunities

Online sports betting is a high-growth sector that offers opportunities for expansion and diversification, locally, regionally and internationally. The development of new gaming products and mobile sports betting apps for domestic and regional markets. The expansion of traditional rural horse racing events and associated betting opportunities. The operation of national lotteries in other African countries.

Outlook

The industry’s recovery has been supported by the rapidly-expanding sports betting sector. Online betting is expected to maintain its positive growth momentum, with demand expected to surge during the 2024 Olympic Games. Sports betting is projected to remain the driver of industry growth, but horse racing is expected to remain under pressure over the medium term. The growth of casinos and land-based gambling establishments is expected to remain subdued, and operators are expected to diversify into online betting. Illegal online casinos and betting sites are eroding the market share of licensed local operators and present potential risks to the gambling public.

Report Coverage

This report on the gambling industry in South Africa includes casinos, limited payout machines, bingo, lotteries, horse racing and sports betting. There is information on the location and number of casinos, the state of the industry, revenue and key gambling statistics, market share, illegal gambling, notable players, corporate actions, regulations and influencing factors. There are profiles of 30 companies including several gambling boards, major casino players such as Tsogo Sun and Sun International, lottery operator Ithuba, and sports betting companies such as 4Racing, Hollywood Sportsbook and SuperSportBet.

Trends

Betting on horse racing has lost market share to other sports, notably football, rugby, cricket, basketball, tennis and darts. Betting on online skill-based games is increasing, particularly among younger players. Bookmakers and totes are increasingly sponsoring sporting events and teams, and using sport as a platform for advertising and marketing. National lottery tickets are increasingly being purchased online. Players are increasingly accessing gambling sites via mobile devices. Mobile sports betting apps have made sports betting more accessible. The betting sector, driven by online sports betting, has outstripped the casino sector to become the largest gambling activity. There is a greater focus on responsible gambling and player safety.