South Africa’s Gambling Industry Surges to ZAR75 Billion as Lawmakers Sound Alarm Over Black Market
South Africa’s gambling industry has reached a new milestone, generating ZAR75 billion ($4.3 billion) in gross revenue for the 2024–25 financial year. However, the strong growth was overshadowed by mounting concern in Parliament over the rapid expansion of illegal online gambling, which regulators say is being fuelled by mobile access and offshore operators.
The figures were presented to the National Assembly Portfolio Committee on Trade, Industry and Competition by the National Gambling Board (NGB) and the National Lotteries Commission (NLC). According to the report, the total gambling turnover hit ZAR1.5 trillion.
The NGB’s data revealed that online betting gross gaming revenue rose by 60% compared to the previous year — the largest increase across all gambling verticals. Taxes and levies collected from the industry reached ZAR5.8 billion ($335 million), with the betting sector accounting for 59% of the total.
Casinos followed with 30% of tax contributions, while Limited Payout Machines (LPMs) and bingo contributed 9% and 2%, respectively. The Western Cape continued to lead in gambling revenue generation, representing 30% of national totals, followed by Mpumalanga and Gauteng.
Overall, the industry directly employed over 33,000 people, underscoring its economic importance as both a source of public revenue and employment.
NGB Acting Chairperson Lungile Dukwana, who recently replaced former head Caroline Kongwa after a forensic audit uncovered irregular expenditures, told MPs that the rise in digital betting is reshaping the sector’s structure and affecting land-based casinos.
The National Lotteries Commission also reported a solid performance, with ticket sales rising from ZAR1.8 billion to ZAR1.96 billion over the same period. The increase was attributed to stronger digital engagement, marketing initiatives, and larger jackpot draws.
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While operational costs rose to ZAR651 million, grant disbursements also nearly doubled to ZAR958 million, reflecting a stronger focus on community funding. Notably, irregular expenditure dropped sharply from ZAR44.9 million to ZAR6.8 million, signaling efforts to improve financial governance and transparency.
NLC Commissioner Jodi Scholtz said the body was expanding its operations nationwide, with new offices across all nine provinces to better serve local communities and strengthen oversight.
Lawmakers voiced concern over the increasing prevalence of illegal gambling, particularly from offshore betting sites targeting South Africans. Regulators said most of these unlicensed operators appear to be registered in Curaçao, where looser licensing standards allow them to bypass local laws.
The NGB told the committee that it plans to enhance monitoring of the Provincial Licensing Authorities (PLAs) to ensure that national gambling norms and standards are applied consistently across all provinces. Part of the regulator’s 2025 strategy involves identifying and shutting down unlicensed operations, particularly those using mobile platforms to reach South African consumers.
