This report covers casino gambling, limited payout machines (LPMs), betting (horse racing and sports), bingo and the National Lottery.
in total gross gambling revenue (GGR)
annual increase over the next five is projected in bingo gross gambling revenue (GGR)
in betting resulted in it being the fastest-growing category in terms of GGR in 2015
in LPMs to R2.4 billion in 2015, this was due to the continued introduction of new LPM sites
Welcome to the fifth edition of Gambling outlook 2016-2020. This publication focuses on segments within the South African gambling industry, with detailed forecasts and analysis. For each segment, we give details about the key trends we have noted as well as key challenges and future prospects we have identified.
The gambling industry continues to grow from a revenue perspective, continues to expand and invest large amounts in capital expenditure. As a business, however, the margins are low, a large portion of the costs is fixed, regulatory compliance is stringent and profitability depends on volume.
Gross gambling revenues for casinos, limited payout machines, bingo and betting totalled R26 billion in 2015, an 11.2% increase on the prior year.
Sources: National Gambling Board of South Africa, PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates, CASA
GGR from all forms of gambling in South Africa rose 11.2% in 2015, up from the 8.4% increase in 2014 and the second-largest gain during the past five years. Payout rates remained relatively stable over the past three years.
Betting, which consists of wagering on both sports events and horse racing, was the fastest-growing category in terms of GGR in 2015 with a 28.5% increase. Betting was aided by the continued increase in sports betting, which rose by 51.9% in 2015 and accounted for 83% of the total increase in betting revenues in 2015.
Gross National Lottery revenues declined for the third consecutive year, falling by 2.9% in 2015 to R2.21 billion. We expect the market to decline further in 2016 and then expand at modest rates beginning in 2017. Growth over the entire forecast period will average 0.2%, compounded annually, to R2.23 billion in 2020.