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The shift from traditional casino gambling to online platforms i reshaping South Africa’s gambling landscape. According to the National Gambling Board (NGB), cellphone gambling now generates the majority of revenue in the industry, leading to a noticeable decline in traditional casinos.
In fiscal year 2024, the total turnover of the gambling sector reached R1.5 trillion ($87 billion), translating to gross revenues of R75 billion ($4.35 billion). Online sports betting emerged as dominant force, contributing R44.5 billion ($2.58 billion), which is nearly three times the R16.6 billion ($963 million) earned by casinos. As a result, casinos now account for just 22% of the total gambling revenue.
NGB CEO Lungile Dukwana reported to parliament that South Africans increasingly prefer mobile gambling platforms due to the convenience offered by smartphones and payment apps. He noted that improved access through mobile devices has driven the growth of online betting, while the country’s gambling laws remain outdated for the current digital landscape.
Number of slot machines and tables reduced over the year
South African casinos, which once commanded nearly 80% of the gambling market a decade ago, have seen their influence diminish since the pandemic. Lockdowns prompted many gamblers to switch to online platforms, resulting in a surge in betting app usage.
Recent date from the National Gambling Board (NGB) reveals a decline in active casino slot machines, dropping by 443 to a total of 21,813 over the past year. Similarly, the number of gaming tables fell from 910 to 890.
According to NGB, acting senior executive Yvonne Gwenhure, these figures highlight a clear shift in gambling preferences, with online slots experiencing significant growth as players transition from traditional machines to internet-based options.
In addition to the decline in slots, other gaming categories such as bingo and limited payout machines also saw revenue drops of 2.3% and 5.5%, respectively. This trend suggests that players are increasingly avoiding physical gaming locations across various formats.
The convenience of accessing online gambling sites via mobile devices has played a key role in this shift, as smartphones and online payment methods make it easier for users to gamble from home.
In South Africa, online sports betting remains the only officially regulated from of online gambling, and this sector is experiencing substantial growth.
A call for better legislation
The rise of online gambling has created new challenges for the National Gambling Board (NGB) and provincial regulators. The National Gambling Act of 2004, which has not been updated significantly, fails to adequately address the realties of digital platforms.
This gap, as NGB CEO Lungile Dukwana explained to his legislators, complicates efforts to combat illegal online gambling, much of which originates from offshore sources.
In response, the NGB is working closely with law enforcement agencies, banks, and the Financial Intelligence Centre to monitor gambling transactions and block illegal websites. They aim to tackle the exploitation of loopholes by provincial governments that allow for “interactive games” to be classified differently.
Offshore gambling sites, particularly those based in places like Curacao, continue to market their services to South Africans without the necessary licenses. The NGB has urged the Department of Communications and ICASA to take action by blocking these sites and restriction their advertising.
While the Advertising Regulatory Board (ARB) is removing gambling ads that violate national rules, the NGB insists that more comprehensive measures and needed. This includes updating gambling laws to reflect the digital age and prioritizng the fight against gambling-related crime at a national level.
As the gambling industry evolves, mobile betting is diminishing the traditional monopoly held by casinos, with smartphones and betting apps becoming the new norm. South African regulators now find themselves at a critical point, needing to adapt legislation to effectively goven the expanding online sector.
This shift not only highlights the need for strong protections against addiction but also emphasizes the importance of addressing illegal online activities.
Source: Technext
