In the fiscal year 2023/24, the betting amount in South Africa's gambling industry reached 1.1 trillion rand, earning some companies billions of rand.
The National Gambling Board's "National Gambling Statistics Report" for the fiscal year 2023/24 shows that South Africa's gambling industry is experiencing a boom.
The betting amount of 1.1 trillion rand for this fiscal year represents a 40.2% increase over the previous fiscal year's turnover.
Gross Gambling Revenue (GGR) reached 59.3 billion rand, up 25.7% year-on-year.
The report further indicates that the majority of the revenue came from the betting sector, which contributed 60.5% of the industry's GGR, about 35.9 billion rand.
Casino revenue is also a significant component of GGR, reaching 17.4 billion rand.
The Limited Payout Machine (LPM) industry is the third largest sector, with GGR revenue of 4.1 billion rand. LPMs, commonly known as slot machines, have legal limits on betting amounts and prizes.
The National Gambling Board states that the growth in GGR across various gambling modes is uneven, with betting being the fastest growing mode.
Compared to the previous year, betting grew by 51.2%; the casino industry only slightly increased by 0.1%, while LPMs decreased by 1.9%.
The Rise of Online Betting
In recent years, online betting has rapidly become popular in South Africa, especially sports betting.
According to data from "The Outlier," South Africans bet 418 billion rand in 2023, an 80% increase from 233 billion rand in 2021/22.
As explained by the publication, betting involves wagering on the outcome of specific events (usually sports events), which can be done online or offline.
"The Outlier" reports: "In South Africa, about 80% of sports betting is done online, with bettors simply clicking a few times on a computer or mobile device to place their bets."
"The total amount bet is significantly higher than the total revenue, as these amounts do not include the prizes paid to winners, which are often 'recycled' for further betting."
South Africa's gambling market is dominated by a few large betting platforms, generating billions of rand in revenue each year.
Well-known gambling companies like Betway and Hollywoodbets dominate online betting, advertising, and sports sponsorships.
Super Group's Betway and SpinBet generated over 1 billion euros in global revenue in the first nine months of 2023.
Sun International's online betting platform SunBet is also increasingly popular.
Sun International owns some of South Africa's most famous resorts and hotels, including Sun City, Maslow Sandton, and The Table Bay.
The company's latest financial report shows that its hotels are performing well, and SunBet generated record revenue in the first half of 2024.
Rapid Growth of SunBet
SunBet accounts for 77.4% of the group's total revenue and continues to grow, with a year-on-year increase of 3.4%.
SunBet's online betting platform has contributed significantly to its growth, with revenue soaring by 71.8%.
The platform's key performance indicators (KPIs) also show significant growth, with active users increasing by 72.2%, first-time deposit users by 111.6%, and total deposits by 74.2%.
Sun International plans to triple SunBet's gambling revenue and market share by 2028, aiming to capture about 10% of the rapidly growing domestic online gambling market.
Entry of New Players
The astonishing growth of the online betting market has also attracted new players, who have invested millions of rand hoping to challenge the existing giants.
MultiChoice's parent company, DStv, is one of them, having invested billions of rand in its platform SuperSportBet.
SuperSportBet, a product of a collaboration between Nigerian gambling company KingMakers and MultiChoice, launched in January 2024 and is one of the few online betting platforms specifically for sports fans.
MultiChoice CEO Calvo Mawela once stated: "SuperSportBet reflects our commitment to innovation, aimed at providing an unparalleled entertainment experience through platformization."
Although the platform has unique tactical advantages, whether MultiChoice can achieve profitability remains unknown.
The company's latest financial report shows that the SuperSportBet business achieved "fundamental growth," but was offset by adverse foreign exchange factors.
MultiChoice stated: "Since its launch in January 2024, SuperSportBet's betting amount has steadily increased each month, especially after the launch of 'Aviator' in July 2024, which further accelerated growth."
