The South African gambling market has posted a record year, with overall gaming income topping £2.58 billion for the 2023-24 fiscal year. While performance in the retail sector continued strong, land-based casinos showed only marginal growth; 0.1% in revenue.
This was mostly driven by the overall growth in the sports betting category, which surged by more than 51% to contribute 60% to the region’s total gaming revenues. Additionally, there has been increased interest in crypto gambling in the country. The use of cryptocurrencies like Bitcoin and Ethereum is increasing in the South African gambling market due to the benefits of crypto transactions, including anonymity, speed, and security.
According to Business2Community’s Andrew O’Malley, several crypto gambling platforms cater to South Africans, offering a wide range of benefits including exclusive crypto bonuses, secure transactions, and a wide selection of games. The interest in these crypto casinos South Africa platforms is part of a broader trend towards digital and online gaming. With increasing internet penetration and a growing middle class, the demand for high-quality gambling experiences is on the rise.
Max Trafimovich, Chief Commercial Officer at gambling software development company SOFTSWISS, believes the most significant surge within the nation’s gambling landscape will happen in the virtual world in terms of iGaming as opposed to conventional brick-and-mortar casinos.
In an interview with SBC News, he says online casino-style games will remain in a somewhat ambiguous regulatory zone, unlike traditional sports betting or horse racing, which he believes will have more well-defined regulations. He adds that interest in fantasy sports, particularly soccer, cricket, and rugby, is increasing.
With a country that boasts some of the best sports sides in the world like back-to-back Rugby World Cup champions in the Springboks, it comes as little surprise that South Africans are big on fantasy sport.
At the close of the 2023/24 financial year, South Africa’s gambling industry saw R1.1 trillion in total wagers, reflecting a 40.2% increase compared to the previous financial year according to a report by the National Gambling Board of South Africa.
Gross gambling revenue (GGR) climbed to R59.3 billion, marking a 25.7% increase year-over-year. Betting contributed the largest portion of GGR, accounting for 60.5% or R35.9 billion. Casinos followed with R17.4 billion (29.3%), while the LPM (Limited Pay-out Machines) sector generated R4.1 billion (7.0%).
Bingo contributed 3.2% at R1.9 billion. Betting showed the most growth at 51.2%, while casinos grew just 0.1%. The LPM sector declined by 1.9%, and bingo experienced modest growth of 2.4%.
Despite regulatory uncertainty around online casino-style games, South Africa’s rising internet penetration and smartphone usage presents a significant opportunity according to Trafimovich.
From a geographical perspective, Gauteng led the way as the largest contributor to Gross Gambling Revenue (GGR), accounting for 27% of the total GGR. The Western Cape followed closely behind, contributing 25.9%, while Mpumalanga made up 18.4% of the total. This highlights the dominant role these regions play in South Africa’s gambling industry.
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