Unless you happen to live on the continent, Africa probably isn’t the first place that comes to mind when talking about worldwide gambling. That accolade goes to places like Las Vegas in the United States or the former Portuguese colony of Macau in China. However, many things are changing in Africa and, as of 2021, there are now more than thirty online sports betting companies in South Africa alone.
Continent-wide, Africa’s gambling industry is stifled by inconsistent internet coverage. According to figures from the World Bank, the percentage of people connected to the internet on the continent ranges from 1% in Eritrea to 75% in Seychelles. South Africa ranks second on that particular list, with 68% of its population having access to the world wide web in some form or another.
The latter statistics contrast with places like the UK, which enjoys 97% internet coverage (and 91% 4G availability), and serves as the home of some of the oldest betting and casino operators in the world. England’s William Hill was founded in 1934 and has expanded to include an online casino. In comparison, this particular niche — online casino — is almost vacant in South Africa.
So, where does all South Africa’s gambling revenue come from? In brief, from the high street, in bricks and mortar betting shops and casinos, lottery and bingo. PWC notes that wagering in the country brought in R27bn in 2016 with the potential to expand to R34bn by 2021. Of course, 2020 caused significant disruption to businesses of all kinds so it’s unlikely the accounting firm’s predictions were ever realized.
Sports Betting and Lottery
In order of income, land-based casino gambling, sports betting, small-payout gaming machines, and bingo are South Africa’s most productive entertainments. Bingo is, by far, the fastest-growing game, though, with uptake increasing by 36.6% towards the end of the last decade. To put that figure into perspective, participation in gambling as a whole only grew by 3.9% over the same period.
South Africa is well-known for its love of sports, especially cricket, horseracing, and rugby, and this has shaped the growth of its gambling sector. The country is responsible for 80% of the wagering that goes on across the entire continent according to Business Insider, although Kenya and Nigeria have plenty of avid bettors, too. South Africa’s bookmakers have only accepted bets since 1996, with some additional changes to codes in 2004.
So, what of the future? It seems unlikely that South Africa will generate much online casino revenue over the next decade due to the hobby’s ongoing absence from the country, but sports betting and lottery can only grow as pastimes for the population. South Africa’s gambling landscape bears a similarity to the one in India, as the availability of games in both countries differs by internal region.
With increasing access to the internet, South Africa could become one of the main global hubs for sports betting, while, elsewhere, Nigeria chases the same entertainment crown usually worn by Las Vegas and Macau.
