South Africa has celebrated a record year for gaming intake, as it reported overall gaming revenue of £2.58bn in the 2023-24 financial year.
Whilst the retail presence of the region continued to thrive, land based casino revenue remained steady as it grew by just 0.1%.
The growth of the overall gaming revenue was largely fuelled by a significant rise from the sports betting sector, which grew by just over 51%, amounting to a total of 60% of the overall revenue of the region.
In a recent interview with SBCNews, Chief Commercial Officer at SOFTSWISS, Max Trafimovich, shared his belief that the South African market could be the next Brazil in terms of growth opportunities.
According to Trafimovich, the potential for growth is only going to escalate as mobile penetration evolves. He added: “South Africa’s rising internet penetration and smartphone usage, as well as the burgeoning middle class, present a significant opportunity. Increased disposable income and a growing appetite for high-quality entertainment drive demand for igaming services.
“Needless to say, South Africa has a rich sports culture, particularly in soccer, rugby, and horse racing. Besides, the government is taking steps towards a more regulated and supportive environment for igaming, while the opposition has put forward their own vision of updating gambling regulations. This shows that local elites are paying attention to our sphere.
“These combined factors position South Africa as a promising market for igaming expansion, and we are keen to capitalise on these opportunities.”
These predictions were echoed by William Scott, Chairman of Golden Matrix Group, who emphasised that close collaboration with regulators has been integral to the success of the region’s gambling sector.
He also predicted that of all the African markets, South Africa will be one that continues to thrive specifically as online casino regulation is rolled out.
He stated: “South Africa will continue to be a market to watch as the online casino market (and regulation) continues to develop. Other markets in East and West Africa will develop with new regulations that make it easier and more defined on licensing for operations.”
Trafimovich also laid out the key obstacles for the market moving forward as he detailed there are still areas with limited connectivity.
He added: “Ensuring reliable internet access across the country will be crucial for the growth of any online business activity. Additionally, addressing issues related to payment processing and financial inclusion will help facilitate smoother transactions for players and operators alike.
“The regulatory landscape for gambling in South Africa is intricate. The country is divided into nine provinces, each with its own regulatory body operating under the national framework set by the NGB. These provincial bodies are responsible for licensing various gambling activities, including online sports betting. Operators must navigate the specific requirements and licensing options within each province’s regulatory framework.
“One notable aspect is that a sports betting licence from any single province generally allows operators to accept online players nationwide. However, it’s important to understand that while sports betting is widely accepted, traditional online casino games that don’t conform to local regulations are banned in all nine provinces. So, regulatory peculiarities can pose challenges for international companies looking to enter the market.”
