South Africans are increasingly moving from traditional casino gambling to online platforms, with cellphone gambling now generating the majority of revenue in the gambling industry, according to the National Gambling Board (NGB). Traditional casinos are experiencing a relative decline.

In the fiscal year 2024, the total turnover of the gambling industry reached R1.5 trillion ($87 billion), resulting in gross revenues of R75 billion ($4.35 billion). Online sports betting dominated this landscape, contributing R44.5 billion ($2.58 billion), nearly tripling the R16.6 billion ($963 million) earned by casinos, whose share of total gambling revenue has fallen to 22%.

The NGB reported to Parliament that South Africans are opting for mobile gambling platforms over casinos due to the convenience of smartphones and payment apps. NGB CEO Lungile Dukwana stated that increased accessibility via mobile devices has fueled the growth of online betting, highlighting that the country’s gambling laws are outdated for the digital age.

This shift reflects changing consumer preferences, as online sports betting gains popularity over traditional casino gaming. The data underscores the evolving dynamics of the gambling industry and the growing revenue contribution from online channels.

South African casinos, which held nearly 80% of the gambling market a decade ago, have seen their dominance erode since the pandemic. Lockdowns pushed many gamblers online, leading to a surge in betting app usage.

According to the NGB, the number of active casino slot machines decreased by 443 to 21,813 in the past year, while gaming tables declined from 910 to 890. NGB acting senior executive Yvonne Gwenhure noted that these figures indicate a shift in gambling preferences, with online slots experiencing strong growth as gamblers transition from traditional machines to internet-based games.

Beyond slot games, bingo and limited payout machines also saw revenue declines of 2.3% and 5.5%, respectively, indicating a broader trend of players avoiding physical locations across various gaming options. The growing popularity of mobile websites can be attributed to the ease of use offered by smartphones, along with the availability of online payment methods and the comfort of gambling from home.

In South Africa, online sports betting is the only officially sanctioned and regulated form of online gambling, and this sector is experiencing considerable growth, reflecting the increasing demand for online betting opportunities.

However, the rapid growth of online gambling has created challenges for the National Gambling Board (NGB) and provincial regulators. The National Gambling Act of 2004, which has not been significantly updated, inadequately addresses digital platforms. This gap has hindered efforts to prohibit illegal online gambling, much of which originates offshore.

The NGB is working with law enforcement, banks, and the Financial Intelligence Centre to monitor gambling transactions and block illegal sites. They are addressing concerns that provincial governments are exploiting loopholes to allow “interactive games” under different classifications. Offshore gambling websites, many based in countries like Curacao, continue to advertise to South Africans without proper licensing. The NGB has requested that the Department of Communications and ICASA block these sites and restrict their advertising.

While the Advertising Regulatory Board (ARB) is removing gambling advertisements that violate national directives, the NGB emphasizes the need for further action, including updating gambling laws for the digital age and prioritizing gambling crime at a national level.

The gambling industry is evolving, with mobile betting erasing casinos’ monopoly as phones and betting apps replace traditional slot machines. South African regulators find themselves at a crucial juncture in adapting gambling legislation to oversee the growing online sector. This requires implementing strong safeguards against addiction and combating illegal online activities.

For the gambling industry, this regulatory shift signifies a clear acknowledgment of the increasing importance of online platforms. These platforms are increasingly seen as the future of gambling in South Africa, marking a significant move away from traditional establishments.