South Africa's gambling industry has witnessed substantial growth during the 2023/24 financial year, with total gross gambling revenue (GGR) increasing by 25.7%. This remarkable rise in revenue, which equated to R59.3 billion, was largely driven by a surge in betting, especially in the online segment.
Betting Takes the Lead in GGR
According to the audited data from the National Gambling Board, betting was the key contributor to this growth, responsible for 60.5% of the industry's total GGR, generating R35.9 billion. This represents a 51.2% increase compared to the previous year, showing how much betting has outpaced other forms of gambling in South Africa. Of this, a significant portion—over R28.9 billion—came from online betting, which has become a dominant force in provinces where it is legalized.
Retail betting also played a role, though more modestly, with R6.94 billion in revenue. This figure constituted around 11.7% of the total market revenue. Despite the growing popularity of online betting, traditional retail betting outlets still contribute meaningfully to the overall market.
While betting has seen rapid expansion, other sectors of the gambling industry have shown relatively flat or even declining performance. Casino revenue, the second largest segment, generated R17.4 billion, accounting for 29.3% of the total GGR. However, this segment showed negligible growth, increasing by just 0.1% from the previous year.
Limited payout machines (LPMs), which allow players to wager with lower stakes, experienced a slight decline in revenue. The sector recorded a 1.9% drop, bringing in R4.1 billion. Meanwhile, bingo, which is less widespread, grew by 2.4% to reach R1.9 billion, representing 3.2% of total GGR.
As gambling revenues grew, so too did the amount of taxes and levies collected by the government. During the financial year, a total of R4.8 billion in taxes was collected from the gambling sector, marking a 19.2% increase over the previous year. Of this, betting contributed the largest portion, with 49.9% of the total taxes, while casinos followed closely behind with 36.5%.
LPMs and bingo contributed 10.2% and 3.4% of the tax total, respectively, further demonstrating the scale of the betting industry’s dominance.
Western Cape and Mpumalanga Lead Growth
Geographically, the Western Cape emerged as the top province in terms of gambling revenue, with a 31.7% share of the market. This marked a significant change, as Gauteng, historically the largest market, now accounted for 22.1%, putting it roughly on par with Mpumalanga, which claimed 21.9%.
The growth in the Western Cape and Mpumalanga was particularly impressive, with their GGR increasing by 53.6% and 49.3%, respectively. In contrast, provinces such as KwaZulu-Natal and North West recorded declines, with GGR falling by 0.8% and 2.5%, respectively.
The 2023/24 financial year has marked a continuation of the broader trend in South Africa’s gambling industry, where land-based gambling modes such as casinos and LPMs have struggled to keep pace with the rise of online betting. This shift began in the 2020/21 financial year when casinos first lost their position as the dominant form of gambling. Since then, betting has steadily increased its market share, now accounting for over 60% of the total GGR.
The National Gambling Board noted that the majority of betting revenue now comes from online sources. Estimates suggest that more than 80% of total betting revenue is generated online, a figure that highlights the growing appeal of digital platforms for South African gamblers.
While South Africa’s gambling industry saw overall growth in 2023/24, this expansion was driven almost entirely by betting. The dominance of online betting platforms is reshaping the landscape of gambling in the country, with other segments like casinos and LPMs struggling to keep up with the rapid changes. This trend is likely to continue as more gamblers turn to the convenience and accessibility of online betting.
Source:
National Gambling Statistics FY2023/24 [pdf], National Gaming Board.
