The Rapid Growth of Online Gambling in South Africa Challenges Regulatory Boundaries

Record Numbers and Shifting Channels

The financial year that ended in March 2024 saw R59.3 billion in gross gambling revenue. Regions like Mpumalanga and the Western Cape led the charge, thanks to the popularity of local brands like Betway, SunBet, Hollywoodbets, and World Sports Betting.

Key data highlights:

• R1.14 trillion in total gambling turnover;
• R761 billion in sportsbook and R297 billion in gaming activity;
• hybrid wagering and gambling experiences from major operators.

Grey Areas and Emerging Risks

Despite a 2011 Supreme Court decree that outlawed online casino games, many betting sites continue offering such content via provincial permits. The NGB has labelled this a legal violation, but enforcement remains weak, as only 39 arrests and 22 convictions were made in five years. Ongoing legislative reforms have repeatedly failed in Parliament.

Survey insights reveal deeper issues:

• 48% of respondents reported that they gamble more than they did last year.
• 63% bet with non-surplus income.
• Problem gambling affects 31% of participants (up from 6% in 2017).
• Many affected users are unemployed or have low incomes.

Researches indicate that financial hardship is driving user behaviour. Obsession rates have been rising rapidly in vulnerable demographics.

Revenue Increase for Provinces at a High Cost

While casino operators face a 10% tax on gross gaming revenue, virtual sportsbooks pay just 7%. This advantage, combined with rising online popularity, has shifted the balance of power. The Western Cape led the nation with R1.46 billion in gambling taxes, followed by Gauteng and Mpumalanga with R1.15 billion and R890 million, respectively.

Meanwhile, traditional employers like Sun International and Tsogo Gaming face shrinking relevance, despite efforts like SunBet, which quadrupled its income to R733 million in 2023. With betting revenue projected to grow 20% annually through 2027, the sustainability of land-based jobs is increasingly under threat.

The gambling boom in the region represents a clear opportunity for forward-thinking operators. At the same time, this is only achievable with the right tools and legal awareness.