South Africa’s gambling industry reported a remarkable revenue milestone, reaching ZAR75 billion for the financial year 2024-25. This notable figure was discussed during a meeting between the country’s gambling regulators and the National Assembly Portfolio Committee on Trade, Industry and Competition on 16 October. The session was led by the National Gambling Board (NGB) and the National Lotteries Commission (NLC), providing an in-depth look at the current state and future of the country’s gambling sector.
Total turnover across all gambling activities surged to ZAR1.5 trillion, a figure encompassing all sectors and including data from the nine Provincial Licensing Authorities (PLAs) that regulate land-based and online licenses. Acting Chairman of the NGB, Lungile Dukwana, emphasized to committee members the comprehensive nature of this turnover, highlighting the inclusion of diverse gambling sectors.
One of the standout performers in this financial reporting was the online betting segment, which experienced a substantial 60% increase in gross gaming revenue (GGR) over the previous year. Regulatory bodies collected ZAR5.8 billion in taxes and levies, with the betting sector contributing the largest portion at 59%, amounting to ZAR3.4 billion. The casino sector followed with a 30% contribution generating ZAR1.7 billion. Limited Payout Machines (LPMs) and the bingo industry contributed 9% and 2% respectively, with LPMs generating ZAR525 million.
On a provincial level, the Western Cape emerged as the leading region in gambling revenue generation, accounting for 30% of the total. Mpumalanga and Gauteng provinces followed, showcasing their significant roles in the national gambling landscape. The industry directly employed over 33,169 individuals, signifying its importance as a job creator in the economy.
Dukwana noted the increasing prominence of online betting and its impact on physical casinos. He emphasized the shift in consumer preferences towards digital platforms, which is reshaping the traditional casino business model. The transition of leadership at the NGB came after former head Caroline Kongwa resigned in July following a forensic audit that revealed “irregular spending” related to bonus payments.
In the realm of lottery operations, key financial movements were noted for the period 2024-2025. Ticket sales rose from ZAR1.8 billion to ZAR1.96 billion, driven by a surge in major jackpots, enhanced digital engagement, and robust marketing efforts. However, operational costs for the lottery increased from ZAR533 million to ZAR651 million, and grant expenses saw a significant rise from ZAR545 million to ZAR958 million. Despite these increases, irregular expenditures sharply decreased from ZAR44.9 million to ZAR6.8 million, reflecting improved financial governance.
Commissioner Jodi Scholtz from the NLC provided insights into the board’s activities across South Africa’s provinces, which included the establishment of new offices and a transformation into a more purpose-driven organization.
During the parliamentary session, concerns were raised about the burgeoning black market in gambling, particularly the rise of illegal activities through mobile platforms. The regulators noted an increase in offshore operators, many of them seemingly licensed or based in Curaçao, infiltrating the South African market without proper authorization.
Dukwana presented the NGB’s strategy moving forward, which includes a thorough assessment of the PLAs to ensure national standards and norms are uniformly applied across South Africa. The national regulator aims to support PLAs in identifying and combating unlicensed gambling ventures, a crucial step in safeguarding the legal gambling sector and minimizing black market risks.
While the legal gambling market in South Africa shows impressive growth and potential, the shadow of the black market looms large. Critics argue that without stringent enforcement and international cooperation, unlicensed operators will continue to siphon off revenue and undermine regulatory efforts. This perspective underscores the challenges faced by the South African gambling industry as it strives to balance growth with regulation and consumer protection.
In conclusion, South Africa’s gambling industry is at a crossroads, experiencing robust growth while grappling with regulatory challenges. The next steps taken by the NGB and other regulatory bodies will be pivotal in shaping the future of the industry, ensuring it remains a significant contributor to the national economy while protecting consumers and maintaining integrity in the market. The dialogue between stakeholders, including government, regulatory bodies, and industry participants, continues to be essential in navigating these complex dynamics.
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