South Africa’s Record-Breaking Gambling Revenue in 2024

2024 delivered an economic surprise that few could have foreseen: South Africa’s gambling industry raked in a staggering ZAR59.3 billion in revenue, setting an all-time record. This isn’t just a number, it’s a bold signal of how deeply embedded gambling has become in the fabric of South African leisure and economy, pointing to the growing appetite for online gaming and the increasing sophistication of the market. But beyond the headline figure, what does this really mean for players, operators, and the future of the industry?

The Drivers Behind the Surge in Revenue

The rise in South Africa's gambling revenue is not just a fluke, it’s the result of several interwoven factors. Leading the way is sports betting, which contributed a staggering 60.5% of the total revenue, amounting to ZAR35.91 billion. This dominance reflects a growing national obsession with betting on both local and international sports. It’s not just about the thrill of the game; it’s about a cultural shift towards digital platforms.

The increased accessibility of online betting, combined with improved internet infrastructure, has allowed South Africans to engage with gambling like never before. The digital space is evolving rapidly, offering convenience that simply cannot be matched by traditional land-based casinos. The surge is emblematic of the broader global shift where technology and entertainment converge, making it easier for people to place bets from anywhere, at any time.

AI Helps The Gambling Industry’s Growth

Another factor that will continue to drive the growth in gambling revenue in South Africa is the increasing role of artificial intelligence in the industry. As the LLMs and algorithms become increasingly capable, they improve various aspects of the gambling industry.

Behind the scenes, gambling sites can rely on algorithms to analyze player behaviour. This can help in several areas, from personalized offers better suited to the players’ preferences to the detection of suspicious betting patterns.

On the players’ side, AI can help improve customer support. Some South African gambling sites are already experimenting with AI support agents - these will only improve over time. A smart chatbot that can help with the more common issues players can run into 24/7 is much more convenient for the player than waiting until business hours. This improves player satisfaction and can cut the costs of the operator, too.

What This Means for Online Casino Players

For the average South African player, this revenue boom is more than just numbers. It signals the dawn of a new era in online gaming. As operators rake in profits, the competition to win over players intensifies. You might already be seeing the effects, larger bonuses, more promotions, and a broader selection of games, more betting options. But it’s not just about quantity.

The quality of the games is improving too, with enhanced graphics, more immersive gameplay, and innovative features being introduced to keep players engaged. The rise in revenue creates a competitive pressure cooker where operators are pushed to up their game. For players, this means a richer, more rewarding gaming experience that’s bound to keep getting better.

New Game Providers

As the competition gets fiercer, operators will not just outdo each other in bonuses and specials but also in games. Players can expect to see the game libraries of an increasing number of operators appear in South African online casinos - like Games Global (formerly Microgaming), Playtech, and other leading software providers.

Regulations Still Lacking

Although a lot of progress has been made in this area, the South African Online Gambling Law is still a bit confusing both for operators and players. Still, the industry is showing growth as a result, with new bookmakers and online casinos emerging as we speak.

Opportunities for Online Casino Operators

The windfall in revenue presents a golden opportunity for online casino operators. With extra cash on hand, operators are reinvesting heavily into their platforms. Customer experience is getting a facelift, better customer service, faster payments, and more robust security measures. But the investments don’t stop there. We’re seeing operators aggressively expand their game libraries, offering a wider variety of slots, table games, and live dealer options to capture every possible market segment.

This influx of cash is also encouraging new operators to enter the South African market, drawn by the rising tide of player engagement. More competition means operators are being forced to innovate, whether that’s by offering exclusive games or running creative promotions to stand out from the crowd.

Fierce Competition

With all the growth, investing in South African online gambling is becoming increasingly attractive, both for local and international companies. Aside from the already well-sounding betting brands, like Hollywoodbets and Betway, new players have emerged on the market. South African players can now gamble at Jackpot City, EasyBet (part of the Easy group of companies), and Betshezi, to name just a few, with new operators on the way.

More brands mean more competition - and this drives innovation and creativity. Operators need to introduce new and better promotions to attract players. Plus, they have to improve their services - because players reward excellence with their business.

Betting Takes the Lead in Revenue Surge

The numbers are in, and they're nothing short of extraordinary. The South African gambling industry experienced an unprecedented rise during the 2023-24 financial year, with gross gambling revenue (GGR) reaching ZAR59.3 billion. This 25.7% leap represents a seismic shift in the nation’s entertainment landscape, driven almost entirely by the meteoric rise of sports betting, which alone contributed ZAR35.91 billion, or 60.5% of the total GGR.

But, this isn’t just another number to skim over. It’s a signal of a profound change in how South Africans engage with leisure activities, especially as the digital world continues to permeate everyday life. The fact that online betting alone generated ZAR 28.97 billion underscores this shift, pulling in nearly half of the GGR. Retail betting, by comparison, now seems almost antiquated, contributing a more modest ZAR6.94 billion.

This transition toward digital betting highlights a clear shift in South Africa's gambling habits, with over 80% of betting revenues now generated online, driven by increased accessibility and the proliferation of mobile betting platforms in regions like Western Cape, Mpumalanga, and North West.

Regional Disparities

According to the National Gambling Board, South Africa’s online gambling market generated a gross gaming revenue (GGR) of R59.3 billion in the 2023/24 financial year. Compared to the previous period, this means a growth of over 25%. The bulk of the revenue is attributed to just three provinces with online gambling regulators:

Western Cape was responsible for more than a third of the GGR, at R18.78 billion
Gauteng came second with R13.1 billion (around 22%)
Mpumalanga didn’t lag too far behind with R12.98 billion (around 21%)

These three regions were responsible for almost 75% of the total GGR in South Africa. There are other provinces that have online gambling regulations in place, but their results were not individually reported.

Uneven Growth Across Gambling Sectors

While sports betting enjoys its time in the sun, other gambling sectors, such as traditional retail casinos and Limited Payout Machines (LPMs), are feeling the squeeze, growing either slowly or shrinking altogether. Retail casinos, the second-largest contributor to GGR, generated ZAR17.36 billion, though growth was stagnant at just 0.1% year-over-year.

Meanwhile, Limited Payout Machines (LPMs) saw a slight decline of 1.9%, bringing in ZAR4.15 billion. Bingo, on the other hand, showed modest growth of 2.4%, contributing ZAR1.89 billion. These figures highlight the increasing dominance of online and digital platforms, as traditional land-based gambling establishments, such as casinos, struggle to maintain the same growth rates amid the rise of online alternatives

Sports Betting Reigns Supreme

Although South African players have access to diverse forms of gambling, both online and in real life, sports betting still reigns supreme. The reason might be the locals’ deep love for sports, especially soccer and rugby.

Online sports betting generated the bulk of the revenues, with almost R29 billion - almost half of the total GGR of the industry
Retail casinos generated around R17.3 billion
Retail sports betting generated a GGR of around R6.95 in the 2023/2024 financial year
Limited payout machines (LPMs - similar to slot machines but with a fixed maximum payout) contributed R4.15 billion
Bingo games accounted for R1.89 billion

What to Expect: Trends and Predictions

The continued rise of online platforms is a given, but we can expect much more than just incremental growth. Virtual Reality (VR) casinos, for instance, could become a game-changer, offering players a more immersive experience that mirrors the thrill of walking into a physical casino.

Cryptocurrency gambling is another trend that could take off, providing an extra layer of anonymity and security that appeals to tech-savvy players. However, as the industry grows, so too will the need for tighter regulations. The government is likely to introduce stricter oversight to ensure responsible gambling practices are upheld, particularly as concerns about addiction and player welfare continue to grow.

The Impact of Online Gambling Restrictions on the Industry

With the explosion in gambling revenue comes a darker, often overlooked reality—addiction. As gambling becomes more normalised and accessible, particularly through online platforms, the number of individuals at risk of developing problematic behaviours inevitably rises. This isn’t just a personal issue, it ripples through families and communities.

It’s crucial, then, that alongside celebrating record-breaking revenues, we take concrete measures to curb the harmful effects. Initiatives like those from the Eastern Cape Gambling Board, which recently engaged WSU students to raise awareness of gambling addiction, are a step in the right direction. However, much more is needed. Stricter regulations, better access to support systems, and proactive education are essential if we are to balance the growth of the industry with the well-being of society as a whole

What Our Experts Think: Unique Industry Insights

The South African online gambling industry stakeholders do recognize its environmental implications. Although there’s not much data available about the specific measures taken, the industry-wide trends suggest that operators are adopting green practices. In its Environmental, Social, and Governance (ESG), Sun International, for example, outlined its efforts to minimize its environmental impact. While the report focused on its land-based operations, it gives us reasons to believe that they adopt similar measures online, too.

Aside from energy consumption (online gambling relies heavily on data centres) and e-waste, the gambling industry has an impact on society, too. To mitigate the effects of problem gambling, operators, along with the NGB, emphasise responsible gambling across the board

Will Online Gambling Impact Traditional Casinos and Betting?

Since the early 2000s, opponents of online gambling have envisioned an addiction epidemic swiping through Europe, and the bankruptcy of the land-based gambling sector. Neither of these happened, of course. Land-based and online betting and casinos have target audiences different enough for the two not to compete but complement each other. This means that South Africa’s grandiose casino resorts and betting shops won’t be impacted by the online competition.

Has The Industry Reached Its Peak?

Far from it. Technology keeps improving, bringing online gambling outlets within the reach of an ever-increasing player base. This keeps the interest of players high in the long run and translates into increasing revenues year after year. Estimates from Grand View Research expect South African online gambling revenues to grow by around 8% yearly at least until 2030. This leaves a lot of space for the growth of the current players in the market and new competitors as well.

Future Outlook for 2025 & Beyond

We have already taken a look at the way experts see the growth of South African gambling revenues. But how about technology? It continues to evolve, with smart algorithms and mixed realities going from sci-fi to everyday life. Will this impact online gambling at all in 2025?

Virtual Reality

When the first Oculus Rift devkit was released more than a decade ago, players have been dreaming of a VR casino. Microgaming, one of the leading innovators in the industry at the time, was quick to release its VR Roulette, a fully-fledged, immersive game that earned it countless awards. And then… nothing. VR hardware is spreading slowly and is hardly ever used for casual gaming, so there’s no need for widespread adoption of VR casinos. And this is unlikely to change in 2025.

There are only a handful of VR gambling experiences available, and most of them are social, with no real money involved.

Cryptocurrency

Cryptocurrency remains a sensitive subject in 2025. It’s still unregulated, riddled with pump-and-dump schemes, and extremely volatile. The iGaming industry has been reluctant to adopt it for years - and given the current situation, it’s unlikely to do so in the near future.

For the time being, at least, the crypto and fiat gambling worlds will remain separate.

Artificial Intelligence

AI is everywhere today, even at your favourite online casino. Not in an obvious way, of course - although the chatbot that answers your questions might be an LLM. However, the casino industry can make good use of advanced algorithms behind the scenes. AI can help operators with everything from analyzing player preferences and trends to fraud detection.

2025 will see an increase in the use of artificial intelligence in the casino industry but mostly in the background.

Regulations

South Africa still owes the stakeholders a comprehensive regulation of online casinos - the Remote Gambling Bill of 2024 is still under consideration. At the same time, lawmakers have been calling for a so-called “sin tax” on gambling, due to the industry’s substantial growth. An increase in taxation would certainly slow down the growth of the industry - to what extent, depends on the exact form and percentage of the tax imposed.

The Impact of Online Gambling Restrictions on the Industry

Responsible gambling is always a challenge that the industry and the regulators must work together to overcome. South Africa’s rules on online gambling are tougher than in most countries - many of them don’t require KYC checks for deposits, and will only ask for them when players try to withdraw. Although this doesn’t solve the issue of underage gambling completely, it does provide an extra safety net. At the same time, responsible gambling remains a priority for all stakeholders. Initiatives like the Eastern Cape Gambling Board’s recent #WinnersKnowWhenToStop campaign raise awareness about the extent of the program and the ways problem gambling can be tackled.

The new Remote Gambling Bill, introduced in 2024, would completely overhaul the South African online gambling market. It would rethink licensing, operating regulations, and more comprehensive policies to tackle gambling harm. This includes advertising restrictions, too. We’ve seen similar measures in some countries - for example, Bulgaria and Belgium have recently banned gambling advertising altogether.

A Thriving Industry for All

In 2024, South Africa’s online gambling market had another record-breaking year. The industry is thriving, and the operators are winning, too. The ever-increasing revenue opens up new possibilities, from new operators fueling innovation and more attractive bonuses and game libraries for the players. The market continues to grow in a dynamic and exciting way.

But let’s not forget about important aspects like responsible gambling. Underage gambling might not be a major issue online but it’s a problem to be reckoned with in real life. To prevent gambling harm, both online and offline, operators must work together with regulators to raise awareness about the issues that may emerge. And players, too, have to do their part: manage their bankrolls wisely, take frequent breaks, and learn to recognize the signs of problem gambling. And, ultimately, to seek professional help when it’s needed.

Stay informed about the latest industry updates from South Africa and around the world by reading our blog page. And don’t forget to play responsibly!