The South African gambling sector reached unprecedented heights in 2023, posting a remarkable 9.3% year-on-year increase to achieve a total Gross Gambling Revenue (GGR) of R37.2 billion (approximately $2 billion USD). This record-breaking performance underscores the nation’s thriving gambling ecosystem, where traditional land-based establishments maintain their dominance while digital platforms experience explosive growth.
Sector-by-Sector Breakdown: Where the Money Flowed
The revenue distribution reveals fascinating insights into South Africa’s gambling preferences:
Land-Based Casinos (R23.1 billion) – Accounting for 62.1% of total GGR, brick-and-mortar casinos remain the industry’s cornerstone. Major operators like Sun International and Tsogo Sun reported robust post-pandemic recoveries, with integrated resorts attracting both local and tourist gamblers.
Sports Betting (R7.1 billion) – As the fastest-growing segment, sports wagering surged by nearly 15%, fueled by mobile betting adoption. Soccer, rugby, and cricket dominated betting slips, with digital platforms capturing an increasing share of the market.
Limited Payout Machines (LPMs) (R3.4 billion) – These widely accessible gaming terminals contributed 9.1% of revenue, maintaining steady popularity in taverns and retail venues.
Online Casino & Poker (Unofficial Market) – Despite regulatory restrictions, offshore operators reported rising demand, highlighting untapped potential if legalization occurs.
Key Growth Drivers and Market Challenges
Several factors fueled the growth of South Africa’s gambling industry in 2023 — though significant hurdles remain:
Mobile Betting Boom — The rise of sports betting apps attracted a younger, tech-savvy audience, with operators enhancing user engagement through live betting, cash-out options, and personalized experiences. Post-Pandemic Recovery — Land-based casinos saw a resurgence, capitalizing on pent-up demand and positioning themselves as entertainment destinations beyond gambling, with luxury resorts offering dining, events, and leisure activities.
Tsogo Sun
Market Challenges:
Regulatory Gaps: The continued ban on locally licensed online casinos has driven many players to offshore platforms, costing the government an estimated R20 billion annually in lost tax revenue.
Illegal Gambling Epidemic: Unlicensed operators remain a persistent threat due to limited enforcement capacity, fueling industry calls for tougher regulatory crackdowns and better market oversight.
Conclusion
South Africa’s gambling industry stands at a crossroads. While land-based casinos remain the primary revenue driver, the undeniable growth of digital betting signals a shifting landscape. If regulators embrace progressive reforms—particularly in online gambling—the market could unlock even greater economic potential in 2024 and beyond. For now, the industry’s record-breaking performance proves that South Africans’ appetite for gambling shows no signs of slowing down.
