South Africa Hits Record ZAR59.3bn in Gambling Revenue for 2023-24, Sports Betting Dominates

South Africa’s gambling industry reached new heights in the 2023-24 financial year, with gross gambling revenue soaring to a record ZAR59.3bn (£2.58bn/€3.07bn/$3.37bn).

Player spending also hit an all-time high during the period. This marks a 25.7% increase from the ZAR47.12bn generated in 2022-23, the previous record for the country. The National Gambling Board’s latest report covers the 12 months ending on March 31, 2024.

Sports Betting Drives Revenue Growth

Sports betting remained the dominant force in South Africa’s gambling sector, contributing ZAR35.91bn, or 60.5%, of total gambling revenue. This represents a 51.2% surge compared to the previous year. Of this, ZAR28.97bn came from online betting, which accounted for 49% of the overall gambling revenue in 2023-24.

Currently, online sports betting is only legal in five provinces: Northern Cape, Western Cape, Mpumalanga, Limpopo, and North West. In contrast, retail betting generated ZAR6.94bn, making up 19% of all betting revenue and 11.7% of the total market revenue.

Other Gambling Sectors See Flat or Declining Growth

While sports betting experienced significant growth, other gambling sectors showed little or no increase. Retail casinos were the second-largest source of revenue, generating ZAR17.36bn, but this was only 0.1% higher than the previous year, indicating stagnant growth.

Revenue from Limited Payout Machines (LPMs) — machines with restricted betting and prize limits — decreased by 1.9% to ZAR4.15bn. Meanwhile, bingo generated ZAR1.89bn in revenue, reflecting a modest 2.4% year-on-year rise.

Record Wagering by Players Hits ZAR1.14tn

Player spending reached unprecedented levels, totaling ZAR1.14tn in the 2023-24 financial year. This represents a 40.2% increase over the previous record of ZAR815.11bn set in 2022-23.

Sports betting accounted for the majority of wagers, with ZAR761.26bn, or 66.6% of total bets placed. Unlike revenue figures, the regulator did not distinguish between retail and online wagers in this category. Casinos followed with ZAR297.42bn in wagers, making up 26% of all bets during the period. Additionally, ZAR53.74bn was wagered through LPMs, representing 4.7% of the total, while bingo accounted for the remaining 2.6% with ZAR30.27bn.

Western Cape Dominates Online Betting Revenues

In terms of regional performance, the Western Cape led the way with ZAR18.79bn in gambling revenue. Players in this province wagered ZAR353.19bn, the second-highest provincial total. Western Cape benefits significantly from being one of the few provinces that allow legal online sports betting.

Gauteng, South Africa’s most populous province, followed closely behind with ZAR13.10bn in revenue from ZAR173.7bn in bets. Although Mpumalanga saw the highest wagering volume at ZAR359.34bn, it ranked third in terms of revenue, with ZAR12.98bn.

Tax Revenue from Gambling Reaches ZAR4.84bn

The South African government also benefited from the gambling boom, collecting ZAR4.84bn in tax revenue during the 12-month period. Half of this amount, or ZAR2.41bn, came from sports betting, including ZAR889m from online wagering.

By fLEXI tEAM