South Africa's Gambling Revenue Growth in 2023/24

South Africa's gambling sector has experienced a substantial rise in revenue during the financial year of 2023/24, marking a 25.7% increase in total gross gambling revenue (GGR). This notable boost, equivalent to R59.3 billion, was primarily fueled by an upsurge in betting activities, with a particular emphasis on online platforms.

The National Gambling Board's audited figures reveal that betting emerged as the primary contributor to this growth, accounting for 60.5% of the industry's total GGR, with revenues amounting to R35.9 billion. This represents an impressive 51.2% enhancement compared to the previous year, underscoring betting's dominance over other gambling forms in South Africa. Online betting alone accounted for a significant share, with over R28.9 billion coming from this sector, especially in provinces where it is sanctioned.

While retail betting also played a role, it was less dominant, contributing R6.94 billion or approximately 11.7% of the total market revenue. Despite the incline of online betting, traditional betting outlets remain a significant contributor to the market's overall earnings.

Other Sectors and Tax Collection

While betting has surged, other components of the gambling industry have experienced either stagnant or diminishing growth. Casino revenue, which remains the second-largest segment, produced R17.4 billion, encapsulating 29.3% of the total GGR. However, this figure marked a negligible growth, rising by just 0.1% from the previous year.

Limited payout machines (LPMs), designed for lower stakes, saw a revenue drop of 1.9%, bringing in R4.1 billion. Bingo, less prevalent than other forms, managed a modest increase of 2.4% to achieve R1.9 billion, accounting for 3.2% of the total GGR.

As gambling revenues expanded, tax and levy collections by the government increased correspondingly. The financial year witnessed R4.8 billion in tax collection from the gambling sector, indicating a 19.2% rise from the prior year. Betting contributed the largest portion of taxes at 49.9%, with casinos closely behind at 36.5%. LPMs and bingo accountant for 10.2% and 3.4% of the tax revenue, respectively, further amplifying the scale of betting's predominance.

Regional Dynamics and Future Outlook

Geographically, the Western Cape emerged as the leading province in terms of gambling revenue, claiming a 31.7% share of the market. This signified a substantial shift, as Gauteng, traditionally the largest market player, now accounted for 22.1%, nearly equaled by Mpumalanga, which held 21.9%.

The increases in the Western Cape and Mpumalanga were notably significant, with their GGR growing by 53.6% and 49.3%, respectively. In contrast, areas like KwaZulu-Natal and North West registered declines, with GGR dropping by 0.8% and 2.5%, respectively.

The 2023/24 financial year marks a continuation of a broader evolution in South Africa's gambling industry, where traditional land-based modalities, such as casinos and LPMs, have struggled against the rising wave of online betting. This trend initially took root during the 2020/21 financial year when casinos first acknowledged their diminishing dominance in favor of betting. Since that period, the betting sector has been steadily increasing its market share, now seizing over 60% of the overall GGR.

The National Gambling Board pointed out that a bulk of betting revenue is now generated from online activities. Estimates propose that more than 80% of total betting income stems from online sources, signifying the growing preference for digital platforms among South African gamblers.

While South Africa’s gambling industry experienced an upward trajectory in 2023/24, it was largely driven by betting, which continues to reshape the country's gambling landscape. The growing inclination towards online betting platforms is redefining the industry, leaving other segments like casinos and LPMs trailing behind. With the convenience and accessibility associated with online betting, this trend is expected to persist.

Source: National Gambling Statistics FY2023/24 [pdf], National Gaming Board.

By GamesAndCasino