Online Betting Captures 60% of South Africa Gambling Revenue

Physical Casino Operations Continue Declining

Online sports betting contributed $2.6 billion to total gross revenues while physical casinos generated $957 million. Therefore, casino revenues fell 4.1% year-over-year as consumer demand shifted online. Moreover, operational slot machines declined by 443 units to 21,813, representing a 2% drop. Consequently, operational tables decreased 2.2% from 910 to 890 during the financial year.

Yvonne Gwenhure, senior manager for strategy at the National Gambling Board, stated that “this points to the fact that there has been a fall in consumer demand [for physical machines], with casino operators [responding] by reducing the operational slots in casinos. What we have witnessed is that online slots have shown significant growth, suggesting there has been substitution with punters gambling online in place of the physical or land-based slot machines.” Additionally, bingo revenue fell 2.3% while limited payout machines dropped 5.5% year-over-year.

Regulatory Framework Struggles With Offshore Operators

Physical casinos accounted for approximately 80% of gambling revenue in 2010. However, this percentage declined sharply as online betting expanded. Subsequently, the Covid-19 pandemic accelerated the convergence when lockdown restrictions pushed consumers online. Therefore, Dukwana emphasized that “we need a firm policy position to ensure that we deal with issues related to interactive gambling specifically.”

Provincial legislative authorities have exploited loopholes to permit interactive games under gambling contingencies classification. Moreover, international platforms continue operating in South Africa despite regulatory restrictions. Consequently, cooperation with foreign regulators has produced mixed results, with Curacao allegedly refusing to engage. Therefore, the gambling board collaborates with police, banks, and communications authorities to combat illegal operations while advocating for the National Gambling Act of 2004 to be overhauled.