South Africa’s Gambling Industry Surges to New Heights in 2023-24

The South African gambling industry has reached new record-breaking milestones during the 2023-24 financial year, with gross revenue soaring to ZAR59.3 billion. This significant increase reflects the growing popularity of gambling in the country, driven particularly by the rise in sports betting and online platforms.

The total gross gambling revenue for the period, ending 31 March 2024, represented a 25.7% rise from the previous year’s ZAR47.12 billion, setting a new record for the South African market. According to the latest report from the National Gambling Board, player spending also hit an all-time high, demonstrating the sector's strong growth.

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Sports Betting: The Key Driver

Sports betting continues to dominate the South African gambling landscape, generating ZAR35.91 billion, which accounts for 60.5% of the overall revenue. This represents a staggering 51.2% rise from 2023. Online sports betting led the way, with ZAR28.97 billion in revenue, making up 49% of the country’s total annual gambling revenue. Online sports betting is legal in five provinces at the moment: the Northern Cape, the Western Cape, Mpumalanga, Limpopo, and the North West.

Retail betting, although smaller in scale, still contributed ZAR6.94 billion, accounting for 19% of betting revenue or 11.7% of the total market share.

Stagnant Growth in Other Gambling Sectors

While sports betting reported a surge, other forms of gambling saw little to no growth. Retail casino revenue soared to ZAR17.36 billion, only a 0.1% rise from the previous year. Limited payout machines (LPMs) brought in ZAR4.15 billion, reflecting a slight decline of 1.9% year-on-year. Bingo saw a modest increase, generating ZAR1.89 billion, up 2.4%.

Player Wagers Hit New Highs

In terms of player spending, South Africans wagered a record ZAR1.14 trillion in 2023-24, a 40.2% increase from the ZAR815.11 billion wagered in the previous year. The majority of this came from sports betting, which accounted for ZAR761.26 billion or 66.6% of the total wagers. Casino wagers made up ZAR297.42 billion (26%), while LPMs and bingo comprised 4.7% and 2.6%, respectively.

Provincial Breakdown: Western Cape Leads the Pack

Western Cape emerged as the top province for gambling revenue, generating ZAR18.79 billion. The province’s players wagered ZAR353.19 billion, the second-highest amount in the country. Western Cape's legalisation of online sports betting played a key role in this success.

Gauteng, South Africa's most populous province, followed with ZAR13.10 billion in revenue from ZAR173.7 billion in wagers. Mpumalanga saw the highest total wagers at ZAR359.34 billion but ranked third in revenue, bringing in ZAR12.98 billion.

Tax Revenue Boost

The National Gambling Board report also revealed that the South African government collected ZAR4.84 billion in gambling taxes during this period. Sports betting, particularly online platforms, was a major contributor, accounting for half of the total taxes at ZAR2.41 billion, with ZAR889 million from online wagering alone.

South Africa’s gambling industry is showing remarkable resilience and growth, with sports betting leading the charge. As online betting continues to expand, the industry is poised for further success, contributing significantly to both the economy and the government’s tax revenue.