Revenues from online gambling have surged in South Africa in recent years, with the turnover from betting exceeding that of casinos by a substantial margin.
Although Internet gambling platforms cannot obtain national operating licences in South Africa, permits from provincial authorities are being used to operate online casino services.
According to the National Gambling Board’s latest annual report, South Africans wagered R1.14 trillion during the financial year that ended on 31 March 2024.
Gross revenues from gambling reached R59.3 billion during the year, with 60.5% attributed to betting, primarily online, on events like horseracing and sports.
Less clear from the report was whether earnings from the casino games offered by online sportsbook platforms were being aggregated under betting or another category.
A recent analysis by The Outlier showed that the money spent on betting has been increasing since around 2021.
Nationally, betting far outpaced other forms of gambling, generating a turnover of R761 billion — more than double that of casinos, which brought in R297 billion.
Mpumalanga recorded the highest gambling turnover, or bets placed, at R359.3 billion, followed closely by the Western Cape at R353.2 billion. Gauteng trailed at R173.7 billion.
The Outlier found that the Western Cape and Mpumalanga reported the sharpest increases in gambling revenue.
Four years ago, South Africa’s richest province, Gauteng, earned the most revenue from gambling. The Western Cape has surged past, reporting over R5 billion more gambling revenue than Gauteng last year.
Mpumalanga recorded nearly the same gross revenue as Gauteng, which is curious given its much smaller population.
However, this is unsurprising after factoring in that many of South Africa’s top online betting platforms have licences issued by the Western Cape and Mpumalanga provincial gambling authorities.
These include Betway, Hollywoodbets, Sunbet, World Sports Betting, SuperSportBet, Easybet, and Bet.co.za, some of which have multiple licences from different jurisdictions.
Most of these platforms offer sports betting in addition to casino games, including live-streamed table games.
The Piggs Peak case
The National Gambling Board has repeatedly stated that online gambling remains prohibited in South Africa, except for betting on sport and horse racing.
Despite this, many licensed and prominent sportsbook operators continue to offer online casino games, such as slots, roulette, and blackjack.
The National Gambling Board highlighted this as a significant point of non-compliance from betting operators, stating that online bookmakers offered online casino games illegally.
Its position on online gambling is supported by a 2011 Supreme Court decision involving Piggs Peak Casino, which upheld a High Court ruling that online gambling was not permitted in South Africa.
However, legal experts at the time explained that what prevented companies from offering online gambling in South Africa was that it was impossible to get a licence to run a legal online casino.
While the National Gambling Amendment Act introduced regulated online gambling and was assented to by former President Thabo Mbeko in 2008, it was never put into operation.
There have been several attempts to introduce new laws to govern online gambling in South Africa, primarily from the Democratic Alliance, but these have not made it through Parliament.
Online casinos targeting vulnerable groups
“This surge in illegal online gambling activities and the widespread advertising of gambling, often targeting vulnerable populations, has presented new challenges for regulators,” it stated.
InfoQuest conducted a survey in April 2025, which found that nearly half of respondents (48%) said they are gambling more often than a year ago.
The April survey was a follow-up to InfoQuest’s March 2024 study on approximately 300 South African gamblers.
“This surge in frequency points to growing engagement, possibly fuelled by the rise of easily accessible online platforms, aggressive marketing, and shifting social norms,” said InfoQuest managing director Claire Heckrath.
Heckrath said a third of gamblers claim to use surplus funds. “This means that a concerning 63% are likely using money meant for essentials, savings, or other financial commitments,” she said.
The National Gambling Board said the convergence of technology, consumer behaviour, and regulatory frameworks has necessitated a robust response to these challenges.
Regarding enforcement against illegal gambling operators, police minister Senzo Mchunu told Parliament in June that only 39 arrests were made in the past five financial years.
Of the 39 arrests, 20 were made in KwaZulu-Natal and the rest in Gauteng. Of the suspects arrested for illegal gambling, 22 were convicted.
Money spinner
Online betting operators have generated substantial additional tax revenue for the provincial governments that issue their licences.
The National Gambling Board’s latest annual report showed that the Western Cape earned over 30% of tax revenues from gambling, banking almost R1.46 billion during the year.
Gauteng was in second place with R1.15 billion in taxes collected (23.8%), while Mpumalanga was third with nearly R890 million (17.8%) and KwaZulu-Natal fourth with R734 million (15.2%) collected.
