PwC’s team of gambling specialists provide an unbiased overview of how the gambling industry in South Africa is expected to develop over the coming years.
in total gross gambling revenue (GGR) in 2018
CAGR over the next five years is projected in betting GGR (horse racing, sports and fixed odds)
in bingo in 2018 and cumulative 76% over the past four years.
in GGR per LPM since 2014 to R250 000.
Welcome to the seventh edition of Gambling outlook 2019-2023. The gambling market in South Africa improved in the year to 31 March 2018 despite a weak economy and growing competition from illegal online casinos.
The overall performance of the economy continues to play a large role in influencing spending on gambling as evidenced by the impact of rising fuel prices, the increase in the VAT rate and general inflation on consumers disposable income. The share of spending on licensed gambling continues to be impacted by the high levels of illegal gambling operations.
More than a quarter of gamblers in South Africa engage in unlicensed gambling, which cuts into the licensed market. Illegal gambling includes online gambling, which remains convenient and accessible, with many consumers still being unaware that online gambling is illegal.
At the same time, efforts are afoot to further regulate licensed gambling with a new National Gambling Amendment Bill being tabled by the minister of trade & industry in 2018, but not yet enacted. For purposes of this analysis, we assume that the Bill will remain tabled and will not be enacted.
The licensed market is also becoming more competitive with the continued roll-out of LPMs, electronic bingo terminals (EBTs), and legal bookmaking. Sports betting and the related betting on lottery and other results are hugely popular in South Africa with the result that this segment continues to perform well.
This report covers casino gambling, limited payout machines (LPMs), betting (horse racing and sports), bingo and the National Lottery. The report provides data on gross gambling revenues (GGR), which is the amount wagered minus the amount returned to players as winnings; and gambling taxes and levies, which is the amount levied and collected by provincial licensing authorities from legal gambling. In the case of the National Lottery, contributions are made from lottery tickets to the National Lottery Distribution Trust Fund.
Sources: National Gambling Board of South Africa, PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates, CASA