The fiscal year 2023-24 marks an unprecedented growth period for the South African gambling industry, with total gambling revenue (GGR) reaching a new high of 59.3 billion South African Rand. This figure represents a significant increase of 25.7% from the previous year's 47.12 billion Rand, indicating robust industry vitality.
Unprecedented Growth in Gambling Revenue:
According to the "2023/24 Fiscal Year National Gambling Statistics Report" published by the South African National Gambling Board (pdf), by March 31, 2024, gambling revenue in South Africa exceeded expectations in multiple areas. Sports betting emerged as the dominant force, contributing 60.5% of the total revenue, equivalent to 35.91 billion Rand, an increase of 51.2% from the previous year.
The substantial revenue from the sports betting industry primarily came from online platforms, generating 28.97 billion Rand. This segment currently accounts for 49% of the total gambling revenue, highlighting the shift towards digital gambling solutions. Interestingly, legal online sports betting is limited to five provinces: Northern Cape, Western Cape, Mpumalanga, Limpopo, and North West.
While online gambling soared, retail gambling also remained stable, generating 6.94 billion Rand, accounting for 19% of the total gambling revenue or 11.7% of the entire market. In contrast, growth in other gambling areas was more stagnant. Retail casino revenue slightly increased to 17.36 billion Rand, a mere 0.1% year-over-year growth. Limited Payout Machines (LPM) and bingo industries had mixed results, with LPM revenue decreasing by 1.9% to 4.15 billion Rand, while bingo revenue grew by 2.4% to 1.89 billion Rand.
Record Player Spending:
Total betting amounts by players also surged to a record 1.14 trillion Rand, a 40.2% increase from the previous year's 815.11 billion Rand. Sports betting was the primary source of this expenditure, accounting for 66.6% of the total betting amount, reaching 761.26 billion Rand. Meanwhile, casino gambling accounted for 26% of the betting amount, totaling 297.42 billion Rand, with the remainder spread across LPM and bingo games.
Western Cape led the provinces in gambling revenue, reaching 18.79 billion Rand, primarily due to the province's legal online gambling industry. Gauteng followed closely with gambling revenue of 13.1 billion Rand and betting volume of 173.7 billion Rand. Mpumalanga had the highest betting volume at 359.34 billion Rand but ranked third in gambling revenue.
The gambling industry also made significant tax contributions, with a total annual amount of 4.84 billion Rand, half of which came from sports betting activities, with online betting alone contributing 889 million Rand.
The Commission commented: "From the fiscal year 2022/23 to 2023/24, the gambling industry grew by 25.7%, but this growth was uneven across various gambling modes. The current growth is entirely driven by sports betting and other incidental factors. Besides the high growth data, the gambling industry also expanded its market share to 60.5% of the total gambling revenue (GGR)."
