Online Lottery - South Africa

South Africa

Highlights

Revenue in the Online Lottery market is projected to reach US$111.40m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.93%, resulting in a projected market volume of US$155.70m by 2029.
In the Online Lottery market, the number of users is expected to amount to 687.1k users by 2029.
User penetration will be 0.9% in 2024 and is expected to hit 1.1% by 2029.
The average revenue per user (ARPU) is expected to amount to US$214.60.
In global comparison, most revenue will be generated United States (US$4.39bn in 2024).
With a projected rate of 6.5%, the user penetration in the Online Lottery market is highest South Korea.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Online Lottery market in South Africa has witnessed significant growth in recent years, driven by changing customer preferences, market trends, and local special circumstances.

Customer preferences: In South Africa, there has been a shift in customer preferences towards online lottery platforms due to their convenience and accessibility. With the increasing penetration of smartphones and internet connectivity, more people are opting to play the lottery online rather than visiting physical outlets. Online platforms offer a wide variety of lottery games, attractive promotions, and the convenience of playing from anywhere at any time.

Trends in the market: One of the key trends in the South African online lottery market is the growing popularity of mobile lottery apps. Mobile apps provide a seamless and user-friendly experience, allowing players to easily purchase tickets, check results, and receive notifications. This trend is driven by the increasing smartphone penetration in the country and the preference for on-the-go gaming. Another trend in the market is the introduction of innovative lottery games and features. Online lottery operators are constantly looking for ways to attract and engage customers by offering unique game formats, such as instant win games and scratch cards. These games provide instant gratification and appeal to a broader audience.

Local special circumstances: South Africa has a well-established lottery market, with the National Lottery being one of the most popular forms of gambling in the country. The online lottery market has benefited from this existing popularity and brand recognition. The National Lottery operator has also embraced the digital transformation by launching an online platform, further boosting the growth of the online lottery market. Additionally, South Africa has a large population of young and tech-savvy individuals who are more inclined towards online gaming and entertainment. This demographic shift towards digital platforms has contributed to the growth of the online lottery market in the country.

Underlying macroeconomic factors: The growth of the online lottery market in South Africa is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income. As people have more disposable income, they are more likely to spend on leisure activities, including online lottery games. Furthermore, the COVID-19 pandemic has accelerated the adoption of online lottery platforms in South Africa. With lockdowns and social distancing measures in place, physical lottery outlets were temporarily closed, leading to a surge in online lottery ticket sales. This trend is expected to continue even after the pandemic, as people have become accustomed to the convenience and safety of online gaming. In conclusion, the Online Lottery market in South Africa has experienced significant growth due to changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The shift towards online platforms, the popularity of mobile lottery apps, and the introduction of innovative games have all contributed to the growth of the market. Additionally, the existing popularity of the National Lottery and the demographic shift towards digital platforms have further fueled the growth. The underlying macroeconomic factors, such as economic growth and the impact of the COVID-19 pandemic, have also played a role in boosting the online lottery market in South Africa.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Gambling Revenue (GGR) and represent what consumers pay for these products and services.

Modeling approach:

Market size is determined through a Top-Down approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global survey), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is reweighted for representativeness.