Gambling outlook 2017-2021

This report covers casino gambling, limited payout machines (LPMs), betting (horse racing, sports and fixed odds), bingo and the National Lottery.

3.9% increase

in total gross gambling revenue (GGR)
8.1% compound

CAGR over the next five years is projected in betting GGR (horse racing, sports and fixed odds)
36.6% increase

in bingo resulted in it being the fastest-growing category in terms of GGR in 2016
14.1% increase

in LPM GGR to R2.7 billion in 2016, this was due to the continued introduction of new LPM sites

Overview

Welcome to the sixth edition of Gambling outlook 2017-2021. 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.

Although the gambling industry overall continued to grow from a revenue perspective in 2016, the growth rate was significantly lower than increases experienced during the past couple of years. Casino gross gambling revenues declined for the first time since 1997 reflecting the tough economic conditions and the impact of illegal gambling. The other segments continued to show growth in 2016.

Gross gambling revenues for casinos, limited payout machines, bingo and betting totalled R27 billion in 2016, a 3.9% increase on the prior year.

Sources: National Gambling Board of South Africa, PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates, CASA

Gambling

GGR in South Africa rose by 3.9% in 2016, down from the 11.2% increase in 2015 and the smallest gain during the past four years.

Betting

Betting consists of fixed-odds bookmaking on sporting events, pari-mutuel wagering on horse racing and taking bets on the outcome of lotteries. Betting GGR rose by 14.3% in 2016, raising its share of total GGR to 19% from 17% in 2015.