A report by international technology company Softswiss projects that sports betting in SA will be the main driver of growth in gambling as offshore and domestic players wrestle for market share.
Sports betting already accounts for about 60.5% of the total gambling market in SA. The country’s high smartphone penetration rate of over 70% and the expansion of digital platforms have played pivotal roles in the exponential growth, according to the report.
Max Trafimovich, chief commercial officer at Softswiss, said football was the biggest pull factor behind the surge in sports betting.
“SA is emerging as a key player in the iGaming sector, driven by strong digital adoption and a thriving sports culture. With increasing mobile penetration and a growing middle class, the market offers significant potential for expansion, making it a welcoming sign for operators and investors alike,” Trafimovich said.
“While the market demonstrates growth potential, it also faces challenges. Fragmented provincial regulations and a 15% VAT on betting transactions present operational complexities for businesses. However, these challenges have not deterred both global and local investors from contributing.”
Gerrie Fourie, CEO of Capitec, SA’s largest bank by customer numbers, said last year the surge in sports betting was something the country has to have a conversation about.
Fourie said based on its data sports betting had taken root in SA, with more people looking to lay their hands on extra money.
Rise Mzansi has taken up the issue of gambling in SA, describing it as a crisis. Makashule Gana, Rise Mzansi’s National Assembly caucus whip, said last week he had written to the National Gambling Board requesting to meet the entity over the matter, but had no joy.
He has since written to National Assembly speaker Thoko Didiza and trade, industry & competition minister Parks Tau to compel the gambling board to meet him.
“I refuse to stand idly while South Africans, particularly vulnerable groups, spend R1-trillion of their money on gambling in a single year. Regardless of the blockages that come my way in the pursuit of gambling reforms.”
The board’s data shows sports betting in 2022/23 accounted for more than half of all betting activities in SA, up from 10% in 2010.
Some of the big players in the sector include Betway, which last year took over from DStv as the title sponsor of SA’s premier football professional league. Other notable players are Hollywoodbets and newcomer SuperSportBet, formed from a partnership between Nigerian betting company KingMakers and MultiChoice.
Betting boom
According to data from Statista, revenue from SA’s online sports betting market reached $394.8m last year and is expected to race to $518.2m by 2029.
Statista said the online sports betting market in SA had experienced significant growth in recent years, driven by changing customer preferences and “local special circumstances”.
“The growth of the online sports betting market in SA can also be attributed to underlying macroeconomic factors. The country has a relatively high unemployment rate, and many individuals are looking for alternative sources of income,” it said.
“Online sports betting provides an opportunity for individuals to earn money through their knowledge and understanding of sports. Additionally, the increasing internet penetration rate in SA has also contributed to the growth of the online sports betting market,” Statista said.
“As more people gain access to the internet, the potential customer base for online sports betting platforms expands, driving market growth. The online sports betting market in SA is experiencing growth due to changing customer preferences, such as the shift towards online and mobile betting, as well as the popularity of live betting.
“The country’s strong sports culture and favourable regulatory environment also contribute to the market’s development. Underlying macroeconomic factors, such as high unemployment rates and increasing internet penetration, further drive the growth of the market,” Statista said.
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