South Africans bet R1.1 trillion

South Africa’s gambling industry saw R1.1 trillion worth of wagers in the 2023/24 financial year, with some companies making billions.

The National Gambling Board published the National Gambling Statistics for the 2023/24 financial year, which revealed a gambling boom in South Africa.

The R1.1 trillion wagered in the year represents a 40.2% increase from the turnover generated during the previous financial year. 

Gross gambling revenue (GGR) amounted to R59.3 billion, a 25.7% increase from the previous year.

The report further revealed that most of this revenue came from betting, which generated 60.5% of industry GGR at R35.9 billion. 

Revenue from casinos also constituted a sizeable proportion of GGR at R17.4 billion. 

The Limited Payout Machine (LPM) industry is the third largest sector, generating R4.1 billion of GGR. LPMs are more commonly known as slot machines, which, by law, have a restricted bet and prize.

The National Gambling Board said GGR growth between the different gambling modes showed unbalanced growth, with betting being the fastest-growing mode. 

Betting increased by 51.2% relative to the previous year. The casino industry saw miniscule growth of 0.1%, while LPMs declined by 1.9%. 

Online betting is experiencing a boom in South Africa, with the gambling mode rising rapidly in popularity over the past few years.

Sports betting, in particular, has taken off. Data from The Outlier shows that South Africans placed R418 billion worth of bets last year, an 80% increase from the R233 billion wagered in 2021/22.

As the publication explains, betting involves placing a wager through a bookmaker on the outcome of a specific event, usually a sports event. It can be done in person or online.

“In South Africa, about 80% of sports betting is done online, with wagers made with just a couple of clicks on a computer or mobile device,” The Outlier reported. 

“The total value of bets is significantly higher than overall revenue because these don’t include payouts, and winnings are often ‘recycled’ to place further bets.”

The breakdown of South Africa’s total GGR by gambling mode can be seen below.

In South Africa, this market is dominated by a handful of betting platforms that rake in billions every year.

Well-known gambling companies like Betway and Hollywoodbets dominate online betting, advertising, and sports sponsorship.

Super Group, which owns Betway and SpinBet, generated over €1 billion in global revenue in the first nine months of 2023.

Sun International’s online betting platform, SunBet, has also become increasingly popular. 

Sun International owns some of South Africa’s most popular resorts and hotels, including Sun City, The Maslow Sandton, and The Table Bay.

The company’s latest results showed that while its hotels performed well, SunBet generated record income in the six months through June 2024.

Gaming income, which constitutes 77.4% of the group’s total income, demonstrated sustained growth, increasing by 3.4%. 

A large part of this growth was due to Sunbet, the company’s online betting platform that continued its phenomenal growth trajectory, with income surging by 71.8%.

Sunbet reported substantial growth in its key performance indicators, with unique active players up 72.2%, first-time depositors up 111.6%, and deposits up 74.2%.

However, the platform’s growth is not stopping there. Sun International plans to triple SunBet’s gaming income and market share by 2028, targeting approximately 10% of the fast-growing domestic online gaming market.

The incredible growth of online betting in South Africa is also encouraging new players to join the market, with companies pumping millions into platforms they hope will take on the incumbents.

DStv-owner MultiChoice is one of these companies, having invested billions into its platform, SuperSportBet.

SuperSportBet is the result of a partnership between Nigerian betting company KingMakers and MultiChoice.

It was launched in January this year and is one of the few online betting platforms specifically targeting sports fans.

It aims to be “the ultimate destination for sports fans, the betting fraternity, and sports lifestyle enthusiasts”.

“SuperSportBet reflects our commitment to evolve into a platform-based business driven by innovation, delivering unparalleled entertainment experiences,” MultiChoice CEO Calvo Mawela said earlier this year.  

“We believe SuperSportBet is the ideal platform for fans to augment their sporting experiences.”

What makes SuperSportBet unique is its association with SuperSport and DStv, which offers South Africans one of the only ways to access both local and international sporting events.

While the platform has a distinct tactical advantage, it remains to be seen whether MultiChoice can run the business profitably.

The company has already racked up billions in losses from the platform. In its latest results, MultiChoice reported “underlying growth” in the business but said foreign exchange headwinds offset this growth.

“It remains early days for SuperSportBet in South Africa, with the focus for KingMakers and SuperSport to establish a market presence in a competitive field through leveraging the SuperSport ecosystem,” the company said. 

“The business has grown stakes consistently on a monthly basis since launching in January 2024 and has seen further acceleration since launching Aviator in July 2024.”