South Africa’s Online Betting Surge Threatens the Future of Traditional Casinos

South Africa’s gambling landscape is undergoing a profound transformation as players increasingly shift from brick-and-mortar casinos to online betting platforms.

According to the National Gambling Board (NGB), cellphone-based gambling has now become the dominant force in the industry, accounting for most of its total revenue and leaving traditional casinos struggling to maintain their footing.

In the 2024 fiscal year, the country’s gambling industry reported a total turnover of R1.5 trillion ($87 billion), generating gross revenues of R75 billion ($4.35 billion). The lion’s share came from online sports betting, which contributed R44.5 billion ($2.58 billion) — nearly three times the R16.6 billion ($963 million) earned by casinos. Consequently, casinos’ share of overall gambling revenue plunged to 22%, signaling a sharp decline in their dominance.

The NGB, in its report to Parliament, highlighted that South Africans are gravitating toward mobile betting platforms due to the convenience offered by smartphones and digital payment systems. NGB CEO Lungile Dukwana noted that “increased accessibility via mobile phones and computers has fueled the growth of online betting,” while emphasizing that the country’s gambling laws remain outdated in the context of today’s digital gambling environment.

This growing preference for digital platforms underscores a fundamental shift in consumer behavior, as online sports betting continues to overshadow traditional casino gaming. The data illustrates how rapidly the gambling industry is evolving, with online channels now serving as the sector’s key revenue drivers.

Online Betting Overtakes the Casino Experience

A decade ago, casinos accounted for nearly 80% of South Africa’s gambling market.

However, their dominance began to erode during the pandemic, when lockdowns forced gamblers to explore online alternatives — a shift that has since become permanent.

The NGB’s latest figures show that the number of active casino slot machines dropped by 443, leaving 21,813 machines in operation, while the number of gaming tables declined from 910 to 890. According to NGB acting senior executive Yvonne Gwenhure, “the figures indicate a shift in gambling preferences, with online slots experiencing strong growth as gamblers move from traditional machines to internet-based games.”

Other traditional gambling formats are also facing downturns. Bingo revenues fell by 2.3%, while limited payout machines experienced a 5.5% decline, reflecting a widespread retreat from physical gaming venues.

The explosion of mobile websites and betting apps has been driven by smartphone accessibility, digital payment integration, and the convenience of gambling from home.

These factors have made online betting not only more appealing but also more embedded in everyday life.

In South Africa, online sports betting remains the only officially regulated form of online gambling. Despite this limitation, the sector is experiencing rapid growth, underscoring the mounting demand for accessible digital gambling options.

Regulators Scramble to Keep Pace

The rise of online gambling has created new regulatory challenges for both the National Gambling Board and provincial authorities. The National Gambling Act of 2004, largely unchanged since its inception, fails to adequately cover digital and cross-border betting activities. Dukwana warned lawmakers that this legal shortfall has hampered efforts to combat illegal online gambling, much of which originates from offshore operators.

To counteract the problem, the NGB is collaborating with law enforcement agencies, banks, and the Financial Intelligence Centre to monitor betting transactions and block unlicensed platforms. Some provincial governments, however, have been accused of exploiting legal loopholes to permit “interactive games” under alternative classifications.

Offshore gambling websites — many based in Curacao and other jurisdictions — continue to target South African consumers without proper licensing. In response, the NGB has called on the Department of Communications and ICASA to block illegal websites and restrict gambling advertisements. The Advertising Regulatory Board (ARB) has already begun removing ads that contravene national gambling directives.

Nonetheless, the NGB insists that stronger legislative reform is needed to modernize gambling laws for the digital age. The board also stresses the importance of treating gambling-related crime as a national priority.

As the gambling industry continues to evolve, mobile betting is rapidly dismantling the monopoly once held by casinos. With smartphones and betting apps replacing slot machines and roulette tables, South African regulators face a crucial turning point in ensuring responsible oversight of the fast-growing online sector.

For the industry itself, this regulatory adaptation represents an acknowledgment of online platforms as the future of gambling in South Africa — marking a decisive shift away from the country’s traditional casino culture and toward a fully digital betting era.

By fLEXI tEAM