South Africa’s gambling sector has undergone a seismic transformation, with online betting at the center of an industry now valued in the trillions. Fueled by mobile technology, aggressive advertising, and shifting consumer habits, online gambling has not only eclipsed traditional casinos in revenue but also sparked growing concerns over regulation, ethics, and sustainability.

During the financial year ending March 2024, South Africans wagered a staggering R1.14 trillion, with gross gambling revenues climbing to R59.3 billion, according to the  latest annual report (pdf) released by the National Gambling Board (NGB). Of that, 60.5% was derived from betting, which now dwarfs revenue from casinos, bingo, and other forms of gambling.

A key driver behind this surge has been the meteoric rise of online sportsbook platforms. According to the analysis published by MyBroadband, betting turnover has grown significantly since 2021, culminating in R761 billion in betting activity—more than double the R297 billion reported from casinos. Even more striking, Mpumalanga and the Western Cape—provinces with significantly smaller populations than Gauteng—recorded the highest gambling turnover, at R359.3 billion and R353.2 billion, respectively.

This is largely due to the fact that many of the country’s major online platforms—including Hollywoodbets, Betway, SunBet, and World Sports Betting—are licensed by provincial authorities in these regions. These platforms offer a hybrid of sports betting and online casino games, including live-streamed table games, creating a highly accessible and appealing experience for punters.

Legal Grey Area: Online Casinos Operate Despite National Ban

Despite the industry’s explosive growth, South Africa’s regulatory framework has not kept pace. Legally, only sports and horse race betting are permitted online. Casino games like slots, blackjack, and roulette remain illegal under national law, a stance reinforced by the landmark 2011 Piggs Peak case, in which the Supreme Court ruled against online casinos operating within the country.

Nevertheless, online sportsbook operators continue to offer these prohibited games, exploiting the provincial licensing loophole. The National Gambling Board (NGB) has flagged this as a critical compliance issue, stating that such offerings are in direct violation of national laws. Efforts to update or enforce legislation—such as the stalled National Gambling Amendment Act and various reform bills—have repeatedly failed in Parliament.

Mobile Access and Social Media Drive Gambling Engagement

This shift hasn’t occurred in isolation. The rise of mobile platforms and social media influencers has embedded online gambling into the daily lives of many South Africans. Influencers often showcase massive wins and flashy bet slips, enticing followers into believing gambling is a viable route to financial freedom.

The ease of access, cashless payments, and flashy advertising create a user-friendly but highly addictive environment. The COVID-19 pandemic further accelerated this shift, attracting first-time bettors to online platforms and deepening reliance on digital wagering.

Vulnerability, Addiction, and a Regulatory Catch-Up

A troubling consequence of this surge is the increased incidence of gambling-related harm. A 2025 InfoQuest survey revealed that 48% of respondents are gambling more frequently than just a year prior, a trend driven by mobile convenience and financial strain. Disturbingly, 63% admitted to gambling with funds not classified as surplus, indicating a reliance on gambling for financial relief.

This reflects a broader pattern of rising problem gambling, now affecting 31% of South African gamblers, up from just 6% in 2017. Many of these individuals are unemployed or earn less than R15,000 per month, painting a grim picture of an industry profiting off desperation.

According to Perpetua’s ESG report, 56% of gamblers cite financial need as a primary motivator, highlighting a growing dependency that may destabilize households and communities. Meanwhile, enforcement remains weak. Police Minister Senzo Mchunu told Parliament that only 39 arrests were made for illegal gambling in the past five years—just 22 resulting in convictions.

Tax Windfall Highlights Provincial Stakes

Despite the legal concerns, provincial governments are benefiting significantly from the online gambling boom. The NGB’s data reveals that the Western Cape led in gambling tax revenue, collecting R1.46 billion, followed by Gauteng at R1.15 billion, and Mpumalanga with R890 million. The tax advantage for online betting operators is also notable—they pay roughly 7% of their GGR in taxes, compared to 10% paid by casinos, creating an uneven playing field.

As traditional casino giants like Sun International and Tsogo Gaming scramble to stay relevant—SunBet’s revenue quadrupled to R733 million by 2023—the online segment continues to erode their market dominance. This shift poses long-term employment risks, especially considering these incumbents support over half of the industry’s workforce.

The NGB projects that betting revenues will grow at 20% annually through 2027, while casino income stagnates. Without updated laws, industry accountability, and public education, this growth may come at a profound societal cost.