South Africa sets a new gambling record of R59.3 billion for the 2023-24 fiscal year. Read more for a breakdown of the record year, consumer spending patterns, a look at the provincial breakdown and a brief overview of the online gambling market.
A report from the National Gambling Board covering the year ending March 2024 indicated Gross Gambling Revenue (GGR) had reached a record high of R59.3 billion in the 2023-24 financial year – with player spending also reaching a record all-time high.
The record revenue indicates a significant 25.7% increase over the previous record of R47.12 billion set in 2022-23.
Sports betting continued to provide the largest portion of the revenue generated, with a whopping R35.91 billion, reflecting a remarkable 51.2% increase over the previous year.
Online betting accounted for 49% of the total revenue for 2023-24 – a figure of R28.97 billion. Notably, online sports betting is only currently legal in certain provinces of the Republic, including the Northern Cape, Western Cape, Mpumalanga, Gauteng, KwaZulu-Natal and the North West Province.
Retail betting generated R6.94 billion during this period, accounting for 19% of the total betting revenue and 11.7% of the overall market revenue. However, the outstanding growth in sports betting was not reflected in other gambling categories, with retail casinos showing minimal growth of 0.1% over the previous year and generating R17.36 billion.
Limited Payout Machines (LPMs), which feature capped bets and prizes, generated R4.15 billion, reflecting a 1.9% decrease year-on-year. In contrast, Bingo reported a 2.4% increase, contributing R1.89 billion to the total revenue.
Examining consumer spending, total wagers amounted to an impressive R1.14 trillion in the financial year 2023-24, exceeding the previous year’s record of R815.11 billion by 40.2%. Sports betting amounted to R761.26 billion – an impressive 66.6% of all wagers.
Unlike revenue, the regulator did not stipulate a breakdown between online gambling and retail betting figures.
When it came to fixed-odds betting and RNG games in casinos, players wagered R297.42 billion in the country’s casinos or 26% of the total amount spent. In comparison, LPMs accounted for 4.7% of the total, attracting R53.74 billion in spending.
Bingo made up the remaining 2.6%, amounting to R30.27 billion in wagers,
On reflection of the gambling revenue by province, the Western Cape emerged as the clear leader with R18.79 billion generated from R353.19 billion in player wagers (from bonuses and deposits) from having the second highest provincial total in 2022-23.
Gauteng, the most populous region in South Africa, ranked second with R13.10 billion in total revenue from R173.7 billion spent on total bets struck.
Surprisingly, Mpumalanga recorded the highest volume of total bets, at R359.34 billion, ranking third in revenue, with R12.98 billion.
South Africa collected R4.84 billion in taxes over this period. R2.41 billion, or just under half of this amount, was derived from sports betting, which included R889 million from online wagering.
Sports betting sites have exploded in popularity over the past few years in South Africa, and this trend is reflected in the recent GGR returns reported by the Gambling Board, even though only seven of the country’s provinces permit legal online sports betting.
While many people in South Africa still gamble illegally at online casinos, the goal is to introduce more options and avenues so that players will be more inclined to gamble their money with approved providers and repurpose that money back into the country.
There are effectively two types of sports betting sites that are legal in South Africa.
Internationally based sportsbooks operating in South Africa generally have better odds, offer more attractive bonuses, and are typically easier to use, so they are highly recommended.
In this ever-expanding market sector, many reputable options are available for those who prefer to stick to a locally based sportsbook.
Here are some points to interesting points to consider:
It’s clear that South Africa has real potential, especially as the market’s growth is driven by increased internet penetration, the convenience of mobile gambling, and a shift in consumer preferences towards online platforms.
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