South Africa Online Gambling Market

South Africans are developing a big appetite for gambling, and in particular, betting. This voracious appetite is not exactly surprising given the current advancements in technology, the expansion of The South African National Gambling Board, an industry worth 47B Rand, and an increase in smartphone penetration across the country. Post-Covid, things are on a big upward swing and it's boom-time, with more people gambling and betting.

Unsurprisingly, such a boom brings with it the approvals and licensing of many more online casinos for SA players. The innovation in the space is certainly attracting more and more players, especially in demographics that may not have otherwise engaged in betting activities.

South Africa: A juicy jurisdiction

Gambling in South Africa has a long history, with around 30 years of lifespan since South Africa became independent. Before this time, gambling was conducted on a state by state basis. Thanks to this rich history, the gambling market and its regulations are mature in nature, despite tech-based gambling becoming far more prevalent in recent times.

The South African National Gambling Board gives operators confidence in investing in licensing in the South African market. The board and its representatives speak to the 2004 Act, as well as the various licenses and certifications that are well established within the country. The strict compliance regulations make gambling operations registered in this jurisdiction more attractive to players, as there is more trust in knowing that gambling is being conducted in a fair manner.

This, in turn, makes SA a juicy attraction for gambling operators seeking to engage in a new market, or even as a base for offshore activities.

 The statistics

As South Africa becomes a major player on the global scene, we get to explore in depth how and why this is happening - and the gambling sector is no different. The National Gambling Board published their National Gambling Statistics FY2022/2 which comes complete with in-depth overviews and statistics from the year that was. Some of the highlights include:

  • A full wager across the year of R815.1B
  • A staggering increase of 45.6% year-on-year wagering
  • Gross gambling revenues of R47.2B
  • Gross gambling revenues up 36.9% year on year
  • Taxes accumulated of R4.1B
  • Taxes up 28.8% year on year
  • Betting makes up the majority of the industry, at 50.3%

These skyrocketing successes outpace even some of the most progressive gambling markets around the world.

What is causing the boom?

One of the reasons for the booming increase in gambling is that more and more South Africans are taking up gambling activities, and in particular, betting. Thanks to the widespread availability of online apps and the proliferation of smartphone use, this puts the ability to gamble in the hands of more and more people. Along with this uptake, the National Board notes that harm reduction efforts are also rising to combat the effects of harmful gambling activities.

The South African economy is also faring better than some other countries post-Covid, which means that the value of the Rand has held steady and inflation hasn’t hit discretionary spending as much as some other places. Paired with the microtransactions that go hand in hand with gambling activities, this combines to shoot revenues upwards.

A sporting country

South Africans are well known for their sporting prowess and love of the game: be it football, rugby, cricket, or even horse racing. Betting on sports adds a new dimension to watching a game. Betting platforms have evolved over the years and now offer a huge range of different ways to bet on sporting games, ensuring that everyone manages to make the bet that seems right to them. And with sports betting apps available in the palm of your hand, along with the ability to watch the game alongside, this provides a brand new way to entertain people. While load shedding might affect watching the game on the TV, if you have enough charge on your phone and power bank, you won’t ever need to miss a thing.

Where to from here?

We’re likely to see even bigger growth in the South African gambling market, as technology evolves, the market matures even more, and other operators are attracted to the space. What was once a niche and boutique market has now captured the attention of the world for good reason. The National Board are likely to continue its efforts to promote responsible gambling and license appropriately so that more South Africans can benefit from the taxes reaped from the industry. The board and other bodies will need to ensure that anti-harm measures continue to mature alongside this growth, to ensure that any detrimental effects to society are minimized and people continue to gamble responsibly for fun and social entertainment purposes.