The National Gambling Board (NGB) and the National Lottery Commission (NLC) submitted data to the National Assembly's Committee on Trade, Industry, and Competition Affairs, showing that the total gambling revenue in South Africa for the fiscal year 2024-25 is expected to reach 75 billion South African Rand (approximately 4.3 billion US dollars), with the industry's total turnover exceeding 1.5 trillion Rand. Online gambling revenue has grown by 60% year-on-year, becoming the fastest-growing sector, but regulatory bodies also warn that black market gambling activities are intensifying with the surge in mobile phone usage. The parliamentary committee meeting noted that most unlicensed offshore operators appear to be licensed in Curaçao, posing a serious threat to the regular market. Regulatory bodies announced that they will introduce new strategies to strengthen the performance assessment of Provincial Licensing Authorities (PLA) and assist them in combating illegal gambling activities, ensuring the uniform application of national regulations.
Revenue Overview and Market Size
The total gambling revenue for South Africa's fiscal year 2024-25 is expected to reach 75 billion South African Rand (approximately 4.3 billion US dollars), with a total industry turnover of 1.5 trillion Rand. These data were submitted by the National Gambling Board (NGB) and the National Lottery Commission (NLC) at a National Assembly committee meeting.
The revenue covers all gambling industries, including operations managed by Provincial Licensing Authorities (PLA), with nine PLAs nationwide responsible for issuing land-based and online licenses within their jurisdictions.
Revenue Distribution and Contribution by Sector
The total amount of taxes collected by regulatory bodies reached 5.8 billion South African Rand (335 million US dollars), with the gambling industry contributing the highest share (59%), amounting to 3.4 billion Rand. The casino industry is second (30%), generating 1.7 billion Rand.
Limited Payout Machines (LPM) account for 9%, generating 525 million Rand, and the bingo game industry accounts for 2%. Online gambling revenue has grown by 60% year-on-year, showing the most significant performance.
Regional Contribution and Employment Impact
The Western Cape province is the main driver of gambling revenue, contributing 30% of the national income. Mpumalanga province is second, and Gauteng ranks third. Data shows that the gambling industry directly employed 33,169 people in 2019.
Regional income disparities reflect the uneven economic development and distribution of gambling facilities.
Online Gambling Growth and Market Impact
Online gambling revenue has grown by 60% year-on-year, becoming the fastest-growing sector. Acting Chair of the National Gambling Board, Lungile Dukwana, stated: "The data highlights the prominent position of the online gambling sector, which has had a noticeable impact on physical casinos."
The rapid growth reflects the trend of consumer habits shifting towards digitalization.
Black Market Threats and Illegal Operations
The parliamentary committee warns that the surge in mobile phone usage has led to an increase in unlicensed gambling activities. Regulatory bodies noted that most unlicensed offshore operators appear to be licensed in Curaçao or located in that region.
Black market operations pose a serious threat to the regular market, causing tax revenue losses and regulatory challenges.
Regulatory Body Changes and Leadership Updates
The former head of the National Gambling Board, Caroline Kongwa, resigned in July after a legal audit found "irregular expenditures" related to several bonuses she received. Lungile Dukwana was subsequently appointed as the acting chairman of the board.
Leadership changes occurred during a critical period when the institution was enhancing regulation and transparency.
Lottery Business Financial Status
The National Lottery Commission's sales for the fiscal year 2024-25 increased from 1.8 billion Rand to 1.96 billion Rand, mainly due to an increase in the number of major prizes, digital penetration, and marketing promotions. Operating costs increased from 533 million Rand to 651 million Rand.
Grant expenditures increased from 545 million Rand to 958 million Rand, while irregular expenditures significantly decreased from 44.9 million Rand to 6.8 million Rand.
Regulatory Strategy and Future Measures
Dukwana outlined the upcoming strategy of the national regulatory body, including assessing the performance of Provincial Licensing Authorities (PLA), "ensuring national norms and standards are uniformly applied across the country." The regulatory body will assist PLAs in identifying and combating unlicensed gambling activities.
The new strategy aims to respond to market changes and black market threats, strengthening regulatory consistency.
Regional Expansion and Organizational Transformation
National Lottery Commission Commissioner Jodi Scholtz introduced the committee's activities in nine provinces, including establishing new offices in each province. The organization is transforming into a more goal-oriented institution, expanding regional coverage and service capabilities.
The expansion plan aims to improve regulatory efficiency and public service accessibility.
Industry Challenges and Response Directions
The gambling industry faces multiple challenges, including black market competition, regulatory uniformity, and technological changes. Regulatory bodies need to balance market development with compliance requirements while responding to constantly changing consumer patterns and technological environments.
Future measures will focus on regulatory collaboration, technological adaptation, and maintaining market order.
