South Africa’s gambling industry has recorded a record-breaking year, with total gross gambling revenue (GGR) climbing to ZAR75 billion ($4.3 billion) for the 2024–25 financial year. However, regulators warn that this growth is being shadowed by an alarming rise in unlicensed offshore gambling activity.
The figures were presented by the National Gambling Board (NGB) and the National Lotteries Commission (NLC) during a parliamentary session before the Portfolio Committee on Trade, Industry and Competition on Thursday, where officials outlined both the market’s strong performance and the growing threat of the black market.
Market Surges Past ZAR1.5 Trillion in Turnover
According to NGB Acting Chairperson Lungile Dukwana, the industry’s total turnover across all gambling verticals – including betting, casinos, bingo, and limited payout machines (LPMs) – hit ZAR1.5 trillion ($87 billion).
“This figure includes all of the gambling sectors, and also across the PLAs,” Dukwana told lawmakers, referring to Provincial Licensing Authorities (PLAs), which oversee licensing on a regional level.
The latest figures highlight a dramatic shift towards online gambling, with GGR from online betting rising by 60% year-on-year. Taxes and levies collected from the industry reached ZAR5.8 billion ($335 million), with the betting sector contributing the lion’s share (59%) — or ZAR3.4 billion ($196 million) — followed by online casinos in South Africa (30%), LPMs (9%), and bingo (2%).
Provincially, Western Cape led the country in gambling revenue generation, accounting for 30% of the total, followed by Mpumalanga and Gauteng. The industry also employed 33,169 people directly over the financial year.
Online Betting Dominates, Casinos Struggle to Keep Up
Online sports betting in South Africa is now firmly the driving force behind South Africa’s gambling market. It generated ZAR44.5 billion ($2.58 billion) in revenue during the fiscal year, nearly three times the ZAR16.6 billion ($963 million) earned by casinos. This has reduced the South African casino sector’s market share to just 22%, compared to nearly 80% a decade ago.
“The data shows the prominence of online betting specifically, which obviously has an effect on physical casinos,” Dukwana told MPs.
This shift has tangible consequences for the land-based industry. The number of active slot machines fell by 443 units to 21,813, while gaming tables decreased from 910 to 890. Revenue from bingo and LPMs also declined by 2.3% and 5.5%, respectively.
The convenience of mobile betting — aided by widespread smartphone use and the growth of mobile payment platforms — is cited as a key driver of the trend.
“Improved access through mobile devices has driven the growth of online betting, while the country’s gambling laws remain outdated for the digital landscape,” Dukwana said.
Lottery Sees Gains as Oversight Improves
The National Lotteries Commission (NLC) reported improved performance during the same period. Lottery ticket sales grew from ZAR1.8 billion ($104 million) to ZAR1.96 billion ($113 million), driven by increased jackpots, better digital distribution, and enhanced marketing efforts.
Operational costs rose to ZAR651 million ($38 million), while grant disbursements nearly doubled to ZAR958 million ($55 million). Notably, irregular expenditures dropped significantly from ZAR44.9 million to ZAR6.8 million, reflecting tighter oversight.
Black Market: Offshore Sites Exploit Loopholes
Despite the robust performance of the regulated market, MPs raised concerns over the growing black market, driven largely by mobile access and unlicensed offshore operators.
Regulators reported that many illegal platforms targeting South Africans are licensed in Curaçao, exploiting regulatory loopholes to offer betting services without local authorisation.
In response, the NGB announced plans to evaluate the performance of all nine PLAs to ensure national standards under the National Gambling Act (NGA) are applied consistently across provinces. It will also increase collaboration with law enforcement, financial institutions, and the Financial Intelligence Centre (FIC) to trace gambling transactions and block unlicensed websites.
However, the regulatory environment remains outdated. The National Gambling Act of 2004, which has not been significantly amended since its introduction, fails to address the realities of a digital-first gambling landscape.
Call for Modernised Legislation
The NGB has urged the Department of Communications and the Independent Communications Authority of South Africa (ICASA) to act against illegal gambling operators by blocking access to unlicensed platforms and restricting their advertising. The Advertising Regulatory Board (ARB) is already removing ads that breach national laws, but regulators argue that more comprehensive measures are urgently needed.
“Updating our gambling laws to reflect the digital age is no longer optional – it is essential,” Dukwana told Parliament. “We must prioritise the fight against gambling-related crime and protect South African players from unregulated platforms.”
As mobile betting cements its position at the heart of the market, South African regulators face a pivotal moment. Adapting legislation, tightening enforcement, and increasing consumer awareness will be crucial to safeguarding the industry’s future — and ensuring that the country’s ZAR75 billion success story isn’t undermined by the black market.
