South Africa’s gambling revenue soars to a record ZAR59.3bn in 2023, with online sports betting surpassing casinos as the top revenue source.
South Africa's gambling industry has experienced a historic surge in revenue, hitting a record-breaking ZAR59.3 billion for the 2023-24 financial year. This represents a 25.7% increase from the previous year’s record of ZAR47.12 billion, as detailed in a report from the National Gambling Board.
More players are embracing online betting, particularly in sports, which is no major surprise in a country that is so proud of its national sports teams . In turn, this has meant the landscape of South African gambling is evolving rapidly, marked by a significant shift away from traditional casinos.
Online Sports Betting Leads Revenue Growth
The rapid growth of digital platforms has made online gambling twice as large as the traditional land-based casino market, reflecting the shifting preferences of modern gamblers. This trend is expected to continue, with players increasingly seeking out South African no deposit bonus codes to maximise their online gaming experiences without upfront risk. The shift to online betting has fueled record revenues, reshaping the gambling landscape in South Africa.
In the past year, sports betting continued to dominate South Africa’s gambling market, generating ZAR35.91 billion and accounting for over 60% of the country’s total gambling revenue. The most striking development, however, is that online sports betting alone generated ZAR28.97 billion—nearly half of the total gambling revenue and a substantial 51.2% increase from the previous year. This growth underscores the growing popularity and accessibility of online gambling platforms, particularly for sports fans.
Despite regulatory limitations that currently only permit online sports betting to the Northern Cape, Western Cape, Mpumalanga, Limpopo, and North West provinces, the online betting sector continues to flourish, driven by strong consumer demand. This segment has outpaced traditional retail betting, which generated ZAR6.94 billion and established itself as the primary force in South Africa’s gambling ecosystem.
Revenue Stagnates in the Traditional Land-Based Casino Sector
While sports betting has seen unprecedented growth, other areas of the gambling industry have experienced relatively flat or declining revenue. Traditional casinos remained the second-largest source of income, pulling in ZAR17.36 billion, marking a negligible 0.1% increase from the prior year. Limited Payout Machines (LPMs) reported ZAR4.15 billion, a slight decrease of 1.9%, and bingo revenue rose by a modest 2.4% to ZAR1.89 billion.
This stagnation among traditional forms of gambling highlights the evolving preferences of South African players, with many now favouring the convenience and variety offered by online sports betting platforms.
Player Spending Reaches New Heights
The record-breaking revenue is mirrored by record player spending, with South Africans wagering ZAR1.14 trillion in 2023-24, marking a significant 40.2% increase from the previous record of ZAR815.11 billion. Sports betting led the way, with ZAR761.26 billion in wagers, accounting for over two-thirds of all player spending. Casino gambling followed, with players wagering ZAR297.42 billion, while LPMs and bingo accounted for a smaller share of overall bets. Naturally, the growth in player spending has also raised concerns about gambling harm in South Africa.
Western Cape and Gauteng Dominate Regional Markets
The Western Cape emerged as the leading region in gambling revenue, bringing in ZAR18.79 billion from ZAR353.19 billion in player bets. This province, one of the few to allow legal online sports betting, has seen significant benefits from the rapid growth in this sector. Gauteng, South Africa's most populous province, ranked second with ZAR13.10 billion in total revenue from ZAR173.7 billion in wagers. Mpumalanga also saw impressive spending, attracting the highest amount in player wagers at ZAR359.34 billion, though it ranked third in revenue at ZAR12.98 billion.
Tax Revenue and Economic Impact
With South Africa’s gambling sector booming, tax revenue generated from gambling activities reached an impressive ZAR4.84 billion over the year. Sports betting contributed half of this amount, totalling ZAR2.41 billion in taxes, with ZAR889 million sourced specifically from online betting.
This increase in tax revenue underscores the economic impact of the gambling industry, which continues to support government funding across various sectors. As online sports betting shows no sign of slowing down, the industry’s economic contribution will likely grow in the coming years, driven by evolving technological platforms which have made online gambling more appealing to younger generations .
In essence, this surge in gambling revenue reflects both an increased appetite for betting and a shift toward digital platforms, especially with regard to sports betting. While traditional casinos may be holding steady, the future of gambling in South Africa appears increasingly tied to the online realm.
