Online Gambling

South Africa

Highlights

Revenue in the Online Gambling market is projected to reach US$828.50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.78%, resulting in a projected market volume of US$1.10bn by 2029.
The Online Sports Betting market has a projected market volume of US$394.80m in 2024.
In global comparison, most revenue will be generated United States (US$24.98bn in 2024).
The average revenue per user (ARPU) in the Online Gambling market is projected to amount to US$224.80 in 2024.
In the Online Gambling market, the number of users is expected to amount to 4.2m users by 2029.
User penetration in the Online Gambling market will be at 6.0% in 2024.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Online Gambling market in South Africa is experiencing significant growth and development due to various factors. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to the positive trajectory of the industry.

Customer preferences: South African consumers are increasingly turning to online gambling as a convenient and accessible form of entertainment. The rise of smartphones and the widespread availability of internet connectivity have made it easier for people to participate in online gambling activities. Additionally, the younger generation, which is more tech-savvy, is showing a greater interest in online gambling compared to traditional brick-and-mortar casinos.

Trends in the market: One of the key trends in the South African online gambling market is the growing popularity of sports betting. With a strong sporting culture and a passion for various sports such as rugby, cricket, and soccer, South Africans are increasingly placing bets on their favorite teams and players. This trend is further fueled by the availability of online platforms that offer a wide range of sports betting options. Another trend in the market is the emergence of online casinos offering a diverse range of games. South African players can now enjoy a wide variety of casino games, including slots, poker, blackjack, and roulette, from the comfort of their homes. The convenience and accessibility of online casinos have contributed to their growing popularity among consumers.

Local special circumstances: The legal landscape surrounding online gambling in South Africa has played a significant role in shaping the market. While online sports betting is legal and regulated in the country, online casinos are not permitted to operate within South Africa's borders. However, South African players can still access international online casinos, which has led to the growth of offshore gambling platforms catering to the local market.

Underlying macroeconomic factors: The South African economy has been experiencing slow growth in recent years, leading to high unemployment rates and financial uncertainty for many individuals. Online gambling offers a potential source of income for some, as well as a form of entertainment and escapism for others. The allure of potentially winning money through online gambling has become more appealing in an economic climate where financial stability is a challenge. Furthermore, the COVID-19 pandemic has also played a role in the growth of the online gambling market. With lockdown measures and restrictions on physical gatherings, many people have turned to online gambling as a way to pass the time and seek entertainment from the safety of their homes. In conclusion, the Online Gambling market in South Africa is experiencing growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The convenience and accessibility of online gambling, the popularity of sports betting, the emergence of online casinos, and the legal landscape surrounding the industry all contribute to the positive trajectory of the market.

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.