Online betting overtakes the casino experience
South African casinos, which held nearly 80% of the gambling market a decade ago, have seen their dominance erode since the pandemic. Lockdowns drove gamblers online, leading to a surge in betting app usage.
According to the NGB, the number of active casino slot machines decreased by 443 to 21,813 in the past year, while gaming tables declined from 910 to 890.
NGB acting senior executive Yvonne Gwenhure stated that the figures indicate a shift in gambling preferences, with online slots experiencing strong growth as gamblers move from traditional machines to internet‑based games.
Beyond slot games, bingo, and limited payout machines also experienced revenue declines of 2.3% and 5.5% respectively, indicating a general trend of players avoiding physical locations across various gaming options.
The growing popularity of mobile websites can be attributed to the ease of use offered by smartphones, coupled with the availability of online payment methods, and the comfort of gambling from one’s own home.
The convenience of accessing these sites on mobile devices has significantly contributed to their widespread adoption.
In South Africa, online sports betting represents the only officially sanctioned and regulated form of online gambling. This sector is experiencing considerable growth, reflecting the increasing demand for online betting opportunities.
Regulators scramble to keep up
The growth of online gambling has presented new challenges for the National Gambling Board (NGB) and provincial regulators. The National Gambling Act of 2004, which has not been significantly updated, inadequately addresses digital platforms. This deficiency, as Dukwana briefed legislators, has hindered efforts to prohibit illegal online gambling, some of which originate offshore.
The NGB is collaborating with law enforcement, banks, and the Financial Intelligence Centre to monitor gambling transactions and block illegal sites, addressing provincial governments’ exploitation of loopholes to allow “interactive games” under different classifications.
Offshore gambling websites, many based in countries like Curacao, continue to advertise to South Africans without proper licensing. The NGB has requested that the Department of Communications and ICASA block these sites and restrict their advertising.
The Advertising Regulatory Board (ARB) is removing gambling advertisements that violate national directives. However, the National Gambling Board (NGB) emphasises the need for further action, including updating gambling laws for the digital age and prioritising gambling crime at a national level.
The gambling industry is evolving, not stagnant. Mobile betting is erasing casinos’ monopoly as phones and betting apps replace traditional slot machines.
South African regulators find themselves at a crucial juncture in adapting gambling legislation to govern the growing online sector. This requires implementing strong safeguards against addiction and combating illegal online activities.
For the gambling industry itself, this regulatory shift signifies a clear acknowledgement of the increasing importance of online platforms. These platforms are increasingly viewed as the future of gambling in South Africa, signalling a move away from traditional establishments.