Special report: SOFTSWISS unveils insights into South Africa’s online gaming market
According to the report, South Africa’s gross gambling revenue will hit €3.63bn by the end of 2025, with online gaming already contributing around 50 per cent to this figure.
Special report.- SOFTSWISS has released its latest market report focusing on online gaming in South Africa. The study covers various aspects of the industry, including market size and growth, regulatory framework, digital adoption and emerging trends.
According to the report, South Africa’s gross gambling revenue will hit €3.63bn by the end of 2025, with online gaming already contributing around 50 per cent to this figure. These numbers cement the country’s status as the largest digital gambling sector in Africa.
Based on GGR per province in FY2024, Western Cape holds the biggest share of the South African gambling market at 49 per cent, followed by Gauteng at 22.1 per cent, Mpumalanga at 21.9 per cent, KZN at 10.5 per cent and Limpopo at 6.5 per cent. The last four provinces include Eastern Cape (3.6 per cent), North West (2.3 per cent), Free State (0.9 per cent) and Northern Cape (0.6 per cent).
Much of the growth in the gambling sector is driven by digital wagering, especially in provinces like Western Cape, Mpumalanga, Limpopo, North West and Northern Cape, where smartphone adoption is high, connectivity is reliable and licensing processes are straightforward.
Mobile devices account for 81 per cent of digital gambling activities, fuelled by a 78.9 per cent internet penetration rate or more than 50.8 million users. However, the high cost of prepaid data, common among South African users, poses a challenge. The study highlights the need for efficient platforms that can accommodate users’ limited data budgets.
Regarding verticals, sports betting is the leading form of gambling in South Africa, accounting for 60.5 per cent of the country’s GGR in 2024. The top sports for betting include football, horse racing, rugby union and cricket, in that order. Other notable mentions include tennis, basketball, golf and esports.
The report also looked into the demographics of various gaming segments in South Africa. It reveals that sports betting is especially popular among men aged 25-45, while casino-style games and fixed-odds betting draw players from a slightly older age group, typically between 30 and 35.
On the other hand, lotteries, such as bingo, especially Electronic Bingo Terminals (EBTs), appeal more to middle-aged women who value social interaction. Esports betting is popular among Gen Z, who are mobile gamers and enjoy high-frequency, low-stakes betting. Fantasy sports also draw a similar demographic, often comprising young adults who are tech-savvy and enthusiastic about sports.
SOFTSWISS determined that the Western Cape Gambling and Racing Board (WCGRB) is the most progressive provincial regulator in South Africa due to the board’s proactive stance on online regulation, openness to software suppliers and leadership in implementing the National Central Electronic Monitoring System (NCEMS).
