Record ZAR59.3bn Revenue for South Africa’s Gambling Market in 2023-24

South Africa’s gambling industry hit a significant milestone in the 2023-24 financial year, with gross gambling revenue (GGR) soaring to ZAR59.3bn. This marked a 25.7% increase compared to the ZAR47.12bn recorded in the previous year. The data, published by the National Gambling Board (NGB), highlights the robust growth of the sector, driven largely by the sports betting market.

Online Sports Betting Primary Growth Driver

The star performer in South Africa’s gambling industry for the 2023-24 period was sports betting, which generated ZAR35.91bn. This represented 60.5% of the total GGR, a staggering 51.2% increase from the prior year. Online sports betting was especially lucrative, contributing ZAR28.97bn and accounting for almost half (49%) of the industry’s overall revenue. Despite the nationwide growth, online betting remains legal only in five provinces: Northern Cape, Western Cape, Mpumalanga, Limpopo, and North West.

Retail betting, which still holds a strong presence in the market, generated ZAR6.94bn. This accounted for 19% of total betting revenue or 11.7% of overall market revenue. Despite the growing shift towards online platforms, physical betting outlets continue to attract a significant number of players across the country.

A Steady Performance from Casinos and Other Segments

While sports betting saw an impressive rise, the same could not be said for other gambling sectors. Casino revenue remained relatively flat, showing only a 0.1% increase from the previous year, with total revenue of ZAR17.36bn. Limited payout machines (LPMs), which allow for restricted betting and prizes, brought in ZAR4.15bn, reflecting a slight decline of 1.9% year-on-year. Bingo, however, showed modest growth, with revenue rising by 2.4% to ZAR1.89bn.

These figures reveal that land-based gambling operations, such as casinos and LPMs, are facing more pressure as digital platforms, particularly online betting, continue to dominate the market.

Player Spending at Record Highs

In addition to record-breaking revenue, player spending also reached an all-time high in the 2023-24 financial year. Consumers wagered ZAR1.14tn, a 40.2% increase from the ZAR815.11bn spent the previous year. Sports betting was again the leader, with ZAR761.26bn in wagers, which accounted for 66.6% of total player spending. The regulator did not provide a breakdown of these figures between online and retail betting, though it is clear that the bulk of this activity took place online.

Casinos were the second most popular option for players, with ZAR297.42bn in wagers, representing 26% of the total. Meanwhile, ZAR53.74bn was wagered on LPMs, and ZAR30.27bn on bingo, making up 4.7% and 2.6% of all bets, respectively.

Provincial Breakdown: Western Cape on Top

The Western Cape emerged as the leading region in terms of gambling revenue, generating ZAR18.79bn. This came from ZAR353.19bn in player wagers, the second-highest provincial total. The region’s dominance is linked to its legal online sports betting framework, which has allowed it to capitalize on the growing demand for digital gambling options.

Gauteng, South Africa’s most populous province, ranked second, bringing in ZAR13.10bn in revenue from ZAR173.7bn in bets. Mpumalanga, despite drawing the most player wagers at ZAR359.34bn, ranked third in terms of revenue with ZAR12.98bn.

Tax Contributions

The South African government also benefitted from this surge in gambling activity, collecting ZAR4.84bn in taxes during the 2023-24 period. Of this, 50%, or ZAR2.41bn, came from sports betting, including ZAR889m from online wagers. The continued rise in tax revenues mirrors the overall growth of the industry and highlights the economic significance of regulated gambling in South Africa.

As the gambling market in South Africa continues to expand, online sports betting remains the primary driver of growth. While traditional sectors like casinos and LPMs are experiencing slower growth, digital platforms are revolutionizing the way players engage with the industry. With player spending and gross revenue reaching new heights, the gambling landscape is set for further transformation, especially as online betting continues to gain momentum across the country.

Source: “National Gambling Statistics Financial Year Ending 31 March 2024 – Audited, [pdf] National Gambling Board of South Africa, October 2023.