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    The Gambling Industry in South Africa 2024

    Carole Veitch | South Africa | 26 June 2024

    The Gambling Industry in South Africa 2022

    Yasmin Mahomedy | South Africa | 23 August 2022

    The Gambling Industry in South Africa 2020

    Carole Veitch | South Africa | 16 April 2020

    The Gambling Industry in South Africa 2019

    Carole Veitch | South Africa | 05 December 2019

    The Gambling Industry in South Africa 2018

    Duncan Bekker | South Africa | 16 January 2018

    The Gambling Industry in South Africa 2016

    Duncan Bekker | South Africa | 21 September 2016

    The Gambling Industry in South Africa 2015

    Juliet Gebbie | South Africa | 27 July 2015

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report on the gambling industry in South Africa includes casinos, limited payout machines, bingo, lotteries, horse racing and sports betting. There is information on the location and number of casinos, the state of the industry, revenue and key gambling statistics, market share, illegal gambling, notable players, corporate actions, regulations and influencing factors. There are profiles of 30 companies including several gambling boards, major casino players such as Tsogo Sun and Sun International, lottery operator Ithuba, and sports betting companies such as 4Racing, Hollywood Sportsbook and SuperSportBet.

    Introduction

    • The South African gambling industry recorded strong revenue growth in the year to end-March 2023, driven the growing popularity of sports betting. \r\n
    • The National Lotteries Commission, currently under investigation over allegations of corruption, money-laundering and misappropriation of funds, reported increased revenue. \r\n
    • The industry presents societal risks, exacerbated by the prevalence of illegal gambling and unregulated online activities. \r\n
    • There has been significant M&A activity and some consolidation in the industry.

    Trends

    • Betting on horse racing has lost market share to other sports, notably football, rugby, cricket, basketball, tennis and darts.
    • Betting on online skill-based games is increasing, particularly among younger players.
    • Bookmakers and totes are increasingly sponsoring sporting events and teams, and using sport as a platform for advertising and marketing.
    • National lottery tickets are increasingly being purchased online.
    • Players are increasingly accessing gambling sites via mobile devices. Mobile sports betting apps have made sports betting more accessible.
    • The betting sector, driven by online sports betting, has outstripped the casino sector to become the largest gambling activity.
    • There is a greater focus on responsible gambling and player safety.

    Opportunities

    • Online sports betting is a high-growth sector that offers opportunities for expansion and diversification, locally, regionally and internationally.
    • The development of new gaming products and mobile sports betting apps for domestic and regional markets.
    • The expansion of traditional rural horse racing events and associated betting opportunities.
    • The operation of national lotteries in other African countries.

    Challenges

    • Challenging economic conditions and rising operating costs.
    • Financial and mental health risks.
    • Illegal online gambling is difficult to monitor and regulate.
    • The delayed implementation of online gambling legislation.
    • The prevalence of corruption, money-laundering and other types of crime.

    Outlook

    • The industry’s recovery has been supported by the rapidly-expanding sports betting sector. \r\n
    • Online betting is expected to maintain its positive growth momentum, with demand expected to surge during the 2024 Olympic Games. \r\n
    • Sports betting is projected to remain the driver of industry growth, but horse racing is expected to remain under pressure over the medium term. \r\n
    • The growth of casinos and land-based gambling establishments is expected to remain subdued, and operators are expected to diversify into online betting. \r\n
    • Illegal online casinos and betting sites are eroding the market share of licensed local operators and present potential risks to the gambling public.

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    The Gambling Industry in South Africa
    The Gambling Industry in South Africa 2024

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    R 20 000.00(ZAR) estimated $1099.99 (USD)*

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    Industry Landscape

    R 14 000.00(ZAR) estimated $ 770.00 (USD)*

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    Historical Reports

    The Gambling Industry in South Africa 2022-08-23

    R 6 500.00(ZAR) estimated $357.50 (USD)*

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    The Gambling Industry in South Africa 2020-04-16

    R 1 900.00(ZAR) estimated $104.50 (USD)*

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    The Gambling Industry in South Africa 2019-12-05

    R 1 900.00(ZAR) estimated $104.50 (USD)*

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    The Gambling Industry in South Africa 2018-01-16

    R 1 900.00(ZAR) estimated $104.50 (USD)*

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    The Gambling Industry in South Africa 2016-09-21

    R 1 900.00(ZAR) estimated $104.50 (USD)*

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    The Gambling Industry in South Africa 2015-07-27

    R 1 900.00(ZAR) estimated $104.50 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 5
    2.3. Size of the Industry 8
    3. LOCAL 10
    3.1. State of the Industry 10
    3.2. Key Trends 14
    3.3. Key Issues 15
    3.4. Notable Players 15
    3.5. Corporate Actions 17
    3.6. Regulations 18
    3.7. Enterprise Development and Social Development 19
    4. AFRICA 20
    5. INTERNATIONAL 22
    6. INFLUENCING FACTORS 24
    6.1. Unforeseen Events 24
    6.2. Economic Environment 24
    6.3. Labour 25
    6.4. Environmental Issues 26
    6.5. Technology, R&D, Innovation 26
    6.6. Government Support 27
    6.7. Input Costs 27
    7. COMPETITIVE ENVIRONMENT 28
    7.1. Competition 28
    7.2. Ownership Structure of the Industry 28
    7.3. Barriers to Entry 29
    8. INDUSTRY SUMMARY 29
    9. OUTLOOK 30
    10. INDUSTRY ASSOCIATIONS AND REGULATORY ENTITIES 30
    11. REFERENCES 31
    11.1. Publications 31
    11.2. Websites 32
    ANNEXURE 1 33
    Limited Payout Machine (LPM) Route Operators 33
    ANNEXURE 2 34
    Industry Legislation 34
    APPENDIX 1 38
    Summary of Notable Players 38
    COMPANY PROFILES 45
    4RACING (PTY) LTD 45
    BETTING WORLD (PTY) LTD 47
    EASTERN CAPE GAMBLING AND BETTING BOARD 50
    EASYBET GROUP (PTY) LTD 53
    EGOLI GAMING (PTY) LTD 54
    EMERALD SAFARI RESORT (PTY) LTD 56
    FREE STATE GAMBLING, LIQUOR AND TOURISM AUTHORITY 58
    GAUTENG GAMBLING BOARD 60
    GOLD CIRCLE (PTY) LTD 62
    GOLDRUSH GROUP (PTY) LTD 65
    GRAND PARADE INVESTMENTS LTD 68
    GREATODDS (PTY) LTD 72
    HOLLYWOOD SPORTSBOOK HOLDINGS (PTY) LTD 74
    ITHUBA HOLDINGS (RF) (PTY) LTD 76
    KWAZULU-NATAL GAMING AND BETTING BOARD 78
    LIMPOPO GAMBLING BOARD 80
    NATIONAL GAMBLING BOARD 82
    NORTH WEST GAMBLING BOARD 84
    NORTHERN CAPE CASINO CONSULTANTS KAIRO (PTY) LTD 86
    NORTHERN CAPE GAMBLING BOARD 87
    O L I M P (PTY) LTD 89
    PEERMONT GLOBAL (PTY) LTD 91
    PIONEER BINGO NORTH WEST (PTY) LTD 95
    PIONEER SLOTS (PTY) LTD 96
    ROUTE GAMING SOLUTIONS (PTY) LTD 97
    SUN INTERNATIONAL LTD 98
    SUPERSPORTBET (PTY) LTD 104
    TSOGO SUN LTD 105
    WESTERN CAPE GAMBLING AND RACING BOARD 111
    WORLD SPORTS BETTING (PTY) LTD 113

    Report Coverage

    This report focuses on the gambling industry and includes information on the state of the industry including casinos and online gambling, limited payout machines, horse racing and sports betting and the lottery. It includes information on influencing factors such as regulation, major players and developments. There are profiles of 23 companies such as major players in casinos Tsogo Sun Holdings, Sun International and Peermont Global, horse racing operators 4Racing and Gold Circle, lottery operator Ithuba and sports and online betting companies such as Netbet (Sportingbet) and various gambling boards and regulators.

    Introduction

    • The gambling industry is recovering from the loss of business during the pandemic when casinos and bars were shut. \r\n
    • Industry sources say casino and bingo revenue are below pre-pandemic levels, with the rebound being driven by betting and limited payout machines. \r\n
    • The effects of lockdown resulted in a shift in market share, largely to online betting. \r\n
    • This trend is expected to continue as the revenue market share of casinos has been in decline for years. \r\n
    • New products and the borderless online environment bring direct competition to traditional gambling establishments and deprive the country of licensing and tax revenue.

    Strengths

    • A well-developed national footprint.
    • Contributions to socio-economic development projects.
    • Industry operators invest in new technologies and games.
    • Standards of regulation are in line with global best practice.
    • The industry includes a diverse range of gambling types.

    Weaknesses

    • Cost of regulatory compliance is high.
    • Decline in casino revenue.
    • High barriers to entry for land-based operations.

    Opportunities

    • Growth into other African countries.
    • Increase in online gambling.
    • Increasing adoption of smartphones offers growth opportunities.
    • Lower startup costs for online betting and bingo.

    Threats

    • Continued weakening of the economy.
    • Difficulty in enforcement as new technologies make it easier to evade regulatory authorities.
    • Illegal gambling.

    Outlook

    • The poor economy and erosion of buying power could result in less disposable income allocated to leisure and entertainment spend. \r\n
    • Land-based casinos are expected to continue to decline relative to online gambling in line with global trends. \r\n
    • The gambling industry is expected to grow steadily over the next few years, driven by online betting and sports betting in particular.\r\n
    • An industry source said operators need to diversify their products to grow further. \r\n
    • Sun international in looking at online channels for growth.

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    The Gambling Industry in South Africa
    The Gambling Industry in South Africa 2022

    Full Report

    R 6 500.00(ZAR) estimated $357.50 (USD)*

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    Industry Landscape

    R 4 550.00(ZAR) estimated $ 250.25 (USD)*

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    Historical Reports

    The Gambling Industry in South Africa 2024-06-26

    R 20 000.00(ZAR) estimated $1099.99 (USD)*

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    The Gambling Industry in South Africa 2020-04-16

    R 1 900.00(ZAR) estimated $104.50 (USD)*

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    The Gambling Industry in South Africa 2019-12-05

    R 1 900.00(ZAR) estimated $104.50 (USD)*

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    The Gambling Industry in South Africa 2018-01-16

    R 1 900.00(ZAR) estimated $104.50 (USD)*

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    The Gambling Industry in South Africa 2016-09-21

    R 1 900.00(ZAR) estimated $104.50 (USD)*

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    The Gambling Industry in South Africa 2015-07-27

    R 1 900.00(ZAR) estimated $104.50 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 4
    2.2. Geographic Position 5
    2.3. Size of the Industry 7
    2.4. Key Success Factors and Pain Points 10
    3. LOCAL 10
    3.1. State of the Industry 10
    3.2. Key Trends 17
    3.3. Notable Players 17
    3.4. Corporate Actions 21
    3.5. Regulations 23
    3.6. Enterprise Development and Social Economic Development 24
    4. AFRICA 26
    5. INTERNATIONAL 28
    6. INFLUENCING FACTORS 29
    6.1. COVID-19 29
    6.2. Economic Environment 30
    6.3. Illicit Gambling, Fraud, and other Criminal Activities 30
    6.4. Rising Operational Costs 31
    6.5. Labour 31
    6.6. Negative Social Consequences of Gambling 32
    6.7. Technology, Research and Development (R&D) and Innovation 33
    7. COMPETITIVE ENVIRONMENT 34
    7.1. Competition 34
    7.2. Ownership Structure of the Industry 35
    7.3. Barriers to Entry 35
    8. SWOT ANALYSIS 36
    9. OUTLOOK 37
    10. INDUSTRY ASSOCIATIONS 37
    11. REFERENCES 37
    11.1. Publications 37
    11.2. Websites 38
    APPENDIX 1 39
    Summary of Notable Players 39
    COMPANY PROFILES 45
    4Racing (Pty) Ltd 45
    Betting World (Pty) Ltd 47
    Eastern Cape Gambling and Betting Board 50
    Egoli Gaming (Pty) Ltd 53
    Emerald Safari Resort (Pty) Ltd 55
    Free State Gambling, Liquor and Tourism Authority 57
    Gauteng Gambling Board 59
    Gold Circle (Pty) Ltd 61
    Hollywood Sportsbook Holdings (Pty) Ltd 64
    Ithuba Holdings (RF) (Pty) Ltd 66
    KwaZulu-Natal Gaming and Betting Board 68
    Lakama Resorts and Casino (Pty) Ltd 71
    Limpopo Gambling Board 72
    National Gambling Board 74
    Netbet (Pty) Ltd 76
    North West Gambling Board 78
    Northern Cape Casino Consultants Kairo (Pty) Ltd 80
    Northern Cape Gambling Board 82
    O L I M P (Pty) Ltd 84
    Peermont Global (Pty) Ltd 86
    Sun International Ltd 90
    Tsogo Sun Gaming Ltd 97
    Western Cape Gambling and Racing Board 103

    Report Coverage

    This report on the South African Gambling Industry includes comprehensive information on the sector and its subsectors including the lottery, casinos, limited payout machines, bingo and betting including betting on horse racing. There are profiles of 21 companies and national and provincial gambling boards in the sector. Profiled companies include major players such as Tsogo Sun, which completed the unbundling of its hotel division and Sun International, which announced plans to increase its holding in hotel and casino resort Sibaya and is in negotiations to make an acquisition in Chile. Others include Ithuba, which manages the lottery and Phumelela Gaming and Leisure, a major player in horse racing.

    Introduction

    The South African gambling industry is a multibillion-rand sector. In 2019, bets wagered through local licensed gambling establishments totalled over R425bn, gross gambling revenue increased to R30.8bn and national lottery ticket sales exceeded R7bn. Although the casino segment continues to generate over 60% of the industry’s earnings, its market share has declined by almost 24% over the past decade due to increased competition from other forms of gambling. In mid-March 2020, the outbreak of a highly contagious new strain of the coronavirus (Covid-19) plunged South Africa into an unprecedented crisis. As in other countries around the world, interventions aimed at containing the spread of the pandemic have shut down much of the economy, restricted travel and confined people to their homes. Authorities have brought horse racing to a halt and sports events have been cancelled or postponed indefinitely. Totalisators, along with casinos, bingo halls and other gambling establishments have been closed until further notice. While the traditional gambling industry is facing unparalleled losses, online gambling sites have reported a surge in activity since the national lockdown came into effect on 27 March 2020.

    Strengths

    • Licensed land-based casinos are of a high standard and compare favourably with international establishments.
    • The gambling industry has a well-developed national footprint.
    • The industry includes a diverse range of gambling types.
    • The industry is innovative, and operators have made substantial investments in new technologies and games.
    • The industry makes substantial contributions to socio-economic development projects and provides support for problem gamblers.

    Weaknesses

    • Barriers to entry are high and the industry is relatively static.
    • Failure on the part of lawmakers to regulate or effectively police illegal gambling operators.
    • High level of regulatory uncertainty.
    • The cost of regulatory compliance is high.
    • The industry’s image has been tarnished by illegal gambling and related unlawful activities, such as match-fixing and dogfighting.

    Opportunities

    • Bingo is a high-growth segment.
    • Development and supply of biometric technologies capable of detecting black-listed people, such as problem gamblers or professional card counters.
    • Development and supply of games which involve an element of skill and incorporate virtual reality and augmented or enhanced reality.
    • Establishment of online esports betting platforms offering cyber sport and computer-generated virtual sporting events.
    • Online gambling platforms offer new revenues streams for companies in the private sector and the possibility of additional tax revenues for government coffers.

    Threats

    • Cybercrime.
    • Declining discretionary spend resulting from sustained economic pressures.
    • Foreign exchange rate volatility.
    • Revenue-erosion of land-based casinos, as online gambling continues to gain market share.
    • The devastating human and economic consequences of the coronavirus pandemic, with loss of lives and livelihoods, and the prolonged suspension or disruption of travel and tourism, gambling and entertainment, horse racing, sports and other leisure activities.
    • The potential loss of revenue if proposed legislation is enacted in its current form. Regulatory amendments that could be detrimental include: The Liquor Amendment Bill and the Control of Tobacco Products and Electronic Delivery Systems Bill.
    • The proliferation of illicit gambling operators.

    Outlook

    The coronavirus crisis has upended the fortunes of South Africa’s gambling industry. Although stakeholders say that it is still too early to quantify the magnitude of the setback suffered by the sector, they anticipate that casino operators, bookmakers and other gambling establishments will suffer substantial losses as a result of the pandemic. While companies may be able to resume activities when the lockdown ends, role players warn that some players will need to streamline their operations if they are to weather the crisis and remain sustainable during the lean months ahead. \r\n\r\nAlthough the South African gambling industry is facing unprecedented challenges, it is a resilient and innovative sector that is able to survive, if not thrive, in inhospitable conditions. In spite of trading disruptions and the bleak economic outlook, there will always be punters looking for a lucky break, particularly when times are tough. The huge popularity of unlicensed games of chance bears testimony to the fact that one doesn’t need to be a high roller to play the numbers. Stakeholders warn that illegal gambling is proliferating and that decisive action needs to be taken to regulate the industry more effectively. New technology presents opportunities to gamble on new ventures. These could include online virtual reality gambling and gaming platforms offering potentially lucrative revenue streams, not to mention the possibility of additional tax revenues for government.

    Read More..
    The Gambling Industry in South Africa
    The Gambling Industry in South Africa 2020

    Full Report

    R 1 900.00(ZAR) estimated $104.50 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 73.15 (USD)*

    Buy Now +

    Historical Reports

    The Gambling Industry in South Africa 2024-06-26

    R 20 000.00(ZAR) estimated $1099.99 (USD)*

    View Report Add to Cart

    The Gambling Industry in South Africa 2022-08-23

    R 6 500.00(ZAR) estimated $357.50 (USD)*

    View Report Add to Cart

    The Gambling Industry in South Africa 2019-12-05

    R 1 900.00(ZAR) estimated $104.50 (USD)*

    View Report Add to Cart

    The Gambling Industry in South Africa 2018-01-16

    R 1 900.00(ZAR) estimated $104.50 (USD)*

    View Report Add to Cart

    The Gambling Industry in South Africa 2016-09-21

    R 1 900.00(ZAR) estimated $104.50 (USD)*

    View Report Add to Cart

    The Gambling Industry in South Africa 2015-07-27

    R 1 900.00(ZAR) estimated $104.50 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 6
    4. STATE OF THE INDUSTRY 9
    4.1. Local 9
    4.1.1. Corporate Actions 14
    4.1.2. Regulations 16
    4.1.3. Enterprise Development and Social Economic Development 18
    4.2. Continental 20
    4.3. International 22
    5. INFLUENCING FACTORS 26
    5.1. Economic Environment 26
    5.2. Illicit Gambling, Fraud and other Criminal Activities 27
    5.3. Regulatory Uncertainty 28
    5.4. Rising Operational Costs 29
    5.5. Technology, Research and Development (R&D) and Innovation 29
    5.6. Negative Social Consequences of Gambling 31
    5.7. Labour 31
    5.8. Environmental Concerns 33
    6. COMPETITION 34
    6.1. Barriers to Entry 35
    7. SWOT ANALYSIS 36
    8. OUTLOOK 37
    9. INDUSTRY ASSOCIATIONS 38
    10. REFERENCES 38
    10.1. Publications 38
    10.2. Websites 39
    APPENDIX 1 40
    Summary of Notable Players 40
    COMPANY PROFILES 46
    EASTERN CAPE GAMBLING AND BETTING BOARD 46
    EGOLI GAMING (PTY) LTD 49
    FREE STATE GAMBLING, LIQUOR AND TOURISM AUTHORITY 51
    GAUTENG GAMBLING BOARD 53
    GOLD CIRCLE (PTY) LTD 55
    HOLLYWOOD SPORTSBOOK HOLDINGS (PTY) LTD 58
    ITHUBA HOLDINGS (RF) (PTY) LTD 60
    KWAZULU-NATAL GAMING AND BETTING BOARD 62
    LIMPOPO GAMBLING BOARD 64
    NATIONAL GAMBLING BOARD 66
    NETBET (PTY) LTD 68
    NORTH WEST GAMBLING BOARD 70
    NORTHERN CAPE CASINO CONSULTANTS KAIRO (PTY) LTD 72
    NORTHERN CAPE GAMBLING BOARD 74
    O L I M P (PTY) LTD 76
    PEERMONT GLOBAL (PTY) LTD 78
    PHUMELELA GAMING AND LEISURE LTD 83
    SUN INTERNATIONAL LTD 88
    TSOGO SUN GAMING LTD 95
    WESTERN CAPE GAMBLING AND RACING BOARD 101

    Introduction

    The fortunes of South Africa’s gambling industry were mixed during the past year. Gross gambling revenue (GGR) reported by casinos, betting, bingo and limited payout machines (LPMs) totalled around R30.8bn, while National Lottery ticket sales surged to R7.07bn. Although the casino segment continues to generate the lion’s share of total gross gambling revenue, its market share has declined markedly from 84.4% in 2009/10 to 60.5% in 2018/19. With casino footfall declining, the cost of regulatory compliance rising and competition intensifying from other types of gambling, including illegal online operators, stakeholders warn that the status quo is unsustainable.

    Strengths

    • Licensed land-based casinos are of a high standard and compare favourably with international establishments.
    • The gambling industry has a well-developed national footprint.
    • The industry includes a diverse range of gambling types.
    • The industry is innovative, and operators have made substantial investments in new technologies and games.
    • The industry makes substantial contributions to socio-economic development projects and provides support for problem gamblers.

    Weaknesses

    • Barriers to entry are high and the industry is relatively static.
    • Failure on the part of lawmakers to regulate or effectively police illegal gambling operators.
    • High level of regulatory uncertainty.
    • The cost of regulatory compliance is high.
    • The industry’s image has been tarnished by illegal gambling and related unlawful activities, such as match-fixing and dogfighting.

    Opportunities

    • Bingo is a high-growth segment.
    • Development and supply of biometric technologies capable of detecting black-listed people, such as problem gamblers or professional card counters.
    • Development and supply of games which involve an element of skill and incorporate virtual reality and augmented or enhanced reality.
    • Establishment of online sports betting platforms.
    • Online gambling platforms offer new revenues streams for companies in the private sector and the possibility of additional tax revenues for government coffers.

    Threats

    • Cybercrime.
    • Declining discretionary spend resulting from sustained economic pressures.
    • Foreign exchange rate volatility.
    • Revenue-erosion of land-based casinos, as online gambling continues to gain market share.
    • The potential loss of revenue if proposed legislation is enacted in its current form. Regulatory amendments that could be detrimental include: The Liquor Amendment Bill and the Control of Tobacco Products and Electronic Delivery Systems Bill.
    • The proliferation of illicit gambling operators.

    Outlook

    The South African gambling industry has been a resilient and innovative sector that is able to survive, if not thrive, in inhospitable conditions. While the bleak economic climate is not good for business, some role players say that there will always be punters looking for a lucky break, particularly when times are tough. The huge popularity of unlicensed games of chance bears testimony to the fact that one doesn’t need to be a high roller to play the numbers. Stakeholders say that illegal gambling is proliferating and that decisive action needs to be taken to regulate the industry more effectively. New technology presents opportunities to gamble on new ventures. These could include online virtual reality gambling and gaming platforms offering potentially lucrative revenue streams, not to mention the possibility of additional tax revenues for government.

    The Gambling Industry in South Africa
    The Gambling Industry in South Africa 2019

    Full Report

    R 1 900.00(ZAR) estimated $104.50 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 73.15 (USD)*

    Buy Now +

    Historical Reports

    The Gambling Industry in South Africa 2024-06-26

    R 20 000.00(ZAR) estimated $1099.99 (USD)*

    View Report Add to Cart

    The Gambling Industry in South Africa 2022-08-23

    R 6 500.00(ZAR) estimated $357.50 (USD)*

    View Report Add to Cart

    The Gambling Industry in South Africa 2020-04-16

    R 1 900.00(ZAR) estimated $104.50 (USD)*

    View Report Add to Cart

    The Gambling Industry in South Africa 2018-01-16

    R 1 900.00(ZAR) estimated $104.50 (USD)*

    View Report Add to Cart

    The Gambling Industry in South Africa 2016-09-21

    R 1 900.00(ZAR) estimated $104.50 (USD)*

    View Report Add to Cart

    The Gambling Industry in South Africa 2015-07-27

    R 1 900.00(ZAR) estimated $104.50 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 6
    4. STATE OF THE INDUSTRY 9
    4.1. Local 9
    4.1.1. Corporate Actions 13
    4.1.2. Regulations 14
    4.1.3. Enterprise Development and Social Economic Development 16
    4.2. Continental 18
    4.3. International 20
    5. INFLUENCING FACTORS 22
    5.1. Economic Environment 22
    5.2. Illicit Gambling, Fraud and other Criminal Activities 23
    5.3. Regulatory Uncertainty 24
    5.4. Rising Operational Costs 25
    5.5. Technology, Research and Development (R&D) and Innovation 25
    5.6. Negative Social Consequences of Gambling 27
    5.7. Labour 27
    5.8. Environmental Concerns 29
    6. COMPETITION 30
    6.1. Barriers to Entry 31
    7. SWOT ANALYSIS 32
    8. OUTLOOK 33
    9. INDUSTRY ASSOCIATIONS 33
    10. REFERENCES 34
    10.1. Publications 34
    10.2. Websites 34
    APPENDIX 1 36
    Summary of Notable Players 36
    COMPANY PROFILES 41
    EASTERN CAPE GAMBLING AND BETTING BOARD 41
    EGOLI GAMING (PTY) LTD 44
    EMERALD SAFARI RESORT (PTY) LTD 46
    FREE STATE GAMBLING, LIQUOR AND TOURISM AUTHORITY 49
    GAUTENG GAMBLING BOARD 51
    GOLD CIRCLE (PTY) LTD 53
    ITHUBA HOLDINGS (RF) (PTY) LTD 56
    KWAZULU-NATAL GAMING AND BETTING BOARD 58
    LIMPOPO GAMBLING BOARD 60
    NATIONAL GAMBLING BOARD 62
    NETBET (PTY) LTD 64
    NORTH WEST GAMBLING BOARD 66
    NORTHERN CAPE CASINO CONSULTANTS KAIRO (PTY) LTD 68
    NORTHERN CAPE GAMBLING BOARD 70
    O L I M P (PTY) LTD 72
    PEERMONT GLOBAL (PTY) LTD 74
    PHUMELELA GAMING AND LEISURE LTD 79
    SUN INTERNATIONAL LTD 84
    TSOGO SUN GAMING LTD 90
    WESTERN CAPE GAMBLING AND RACING BOARD 96

    Report Coverage

    This report examines the South African gambling industry, focusing on casinos, betting, limited payout machines, bingo and the National Lottery. Current conditions, the regulatory environment, legislative changes and other factors that influence the success of the sector are covered in this detailed report. Profiles for 13 companies are provided, including Ithuba Holdings, which is the licensed operator of the National Lottery, and Phumelela Gaming and Leisure Ltd, which provides betting opportunities primarily on horseracing via its totalisator system and a network of 143 TAB outlets, 72 agencies, 85 Betting World outlets, an internet betting site, cellular phone and telephone betting (telebet) centres.

    Introduction

    This report examines the South African gambling industry including casinos, betting, limited payout machines, bingo and the National Lottery. In the 2016/2017 financial year the local industry achieved gross gambling revenue (GGR) of some R27bn and supported more than 70,000 jobs. While the casino segment continues to lead the market, GGR at casinos declined in 2017 for the first time in the history of the industry. Casinos are facing growing competition from other gambling modes including illegal online gambling, which has markedly increased in recent years. Industry stakeholders have expressed concern with a number of regulatory decisions and proposed legislative changes which threaten to undermine stability and curtail investor confidence.

    Strengths

    • Strong regulation for the dominant gambling segments.
    • Well-developed gambling footprint throughout the country.
    • Well-established and internationally recognised casinos.

    Weaknesses

    • Casino and horse racing segments are mature.
    • High barriers to entry.
    • Industry is very dependent on economic environment.
    • Regulatory framework is slow to cover emerging gambling modes.
    • Vulnerable to disruption from emerging technology and online gambling.

    Opportunities

    • Device and internet penetration will increase demand and introduce new customers to the sector.
    • Expansion into related activities such as hotels, food, and entertainment.
    • Growth in demand for sports betting and online betting.
    • Technological innovations to attract new players and expand the range of games.
    • The relocation of casino licences within provinces represents an opportunity for some players and a threat to others.

    Threats

    • Continued poor economic growth.
    • Failure to adequately regulate emerging gambling modes.
    • Illegal gambling.
    • Tax increases and legislation such as the National Liquor Bill.
    • The potential threat of additional casino licences and inter-provincial relocation of casinos.

    Outlook

    Overall revenue growth slowed in 2017 and the gross gambling revenue of casinos declined for the first time in the industry\'s history. CASA attributes the decline to the poor economic environment and increasing illegal gambling. While industry stakeholders do not foresee a marked change in the economy, they are hopeful that growth in emerging gambling modes, increased regulation and the enforcement of measures against illegal gambling will buoy performance. Betting, and particularly online betting, is expected to continue growing, driven by internet and device penetration while the roll-out of LPMs and bingo positions is likely to add new punters and grow revenue. According to Tsogo Sun\'s Chief Financial Officer, Rob Huddy, the industry has sound fundamentals and is “still highly cash generative.” Tsogo Sun claims that the future performance of the industry will depend on “how well the economy performs, and the level of policy certainty that the government is able to generate”, while CASA reiterates that the sector is well-positioned to grow once the macro-economic environment improves.

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 15
    4.1. Local 15
    4.1.1. Corporate Actions 24
    4.1.2. Regulations 26
    4.1.3. Enterprise Development and Social Economic Development 28
    4.2. Continental 29
    4.3. International 31
    5. INFLUENCING FACTORS 32
    5.1. Economic Environment 32
    5.2. Increasing Costs 33
    5.3. Labour 33
    5.4. Technology, Research and Development (R&D) and Innovation 35
    5.5. Environmental Concerns 37
    6. COMPETITION 37
    6.1. Barriers to Entry 39
    7. SWOT ANALYSIS 40
    8. OUTLOOK 40
    9. INDUSTRY ASSOCIATIONS 41
    10. REFERENCES 41
    10.1. Publications 41
    10.2. Websites 42
    COMPANY PROFILES 44
    CLICKABET (PTY) LTD 44
    EGOLI GAMING (PTY) LTD 46
    EMERALD SAFARI RESORT (PTY) LTD 48
    GOLD CIRCLE (PTY) LTD 50
    ITHUBA HOLDINGS (RF) (PTY) LTD 53
    NETBET (PTY) LTD 55
    NIVEUS INVESTMENTS LTD 56
    NORTHERN CAPE CASINO CONSULTANTS KAIRO (PTY) LTD 59
    O L I M P (PTY) LTD 61
    PEERMONT GLOBAL (PTY) LTD 63
    PHUMELELA GAMING AND LEISURE LTD 68
    SUN INTERNATIONAL LTD 73
    TSOGO SUN HOLDINGS LTD 79

    Report Coverage

    The report on the Gambling industry focuses on the size of sector, where R358.4bn was wagered during the 2015/2016 financial period, recent developments and factors influencing the success of players in the formal sector. The report profiles 16 companies, ranging from the major casino operators to companies in the growing sports betting segment. These include online sports betting websites, Clickabet (Pty) Ltd, Netbet (Pty) Ltd t/a Sportingbet and Sunbet, part of Sun International.

    Introduction

    This report focuses on the South African gambling industry which includes casino gambling, sports betting, Limited Payout Machines, the National Lottery and bingo. The local gambling industry achieved gross gambling revenue (GGR) of R26.3bn in 2016 and paid some R2.8bn in taxes and levies associated with gambling activities. Although facing increasing competition, the casino segment dominates the market, accounting for over 70% of GGR. Casinos employ 24,300 people and the industry as a whole, including non-gambling services such as hospitality and catering, indirectly supports more than 64,000 jobs.

    Strengths

    • Strong regulatory framework for the largest gambling segments.
    • The gambling industry contributes R2.8bn in taxes and levies to the fiscus and indirectly supports more than 64,000 jobs.
    • Well-developed gambling footprint throughout the country.
    • Well-established and internationally recognised casino segment.

    Weaknesses

    • A lack of regulation covering emerging gambling segments.
    • High barriers to entry.
    • Industry is highly receptive to economic downturn.
    • The casino and horse racing segments are mature.

    Opportunities

    • Diversification of non-casino related activities such as hotels and restaurants.
    • Growth in the LPM segment and many available LPM licences.
    • Increasing mobile and broadband penetration increasing the number of potential punters and driving innovation.
    • Rapid growth in demand for sports betting and online sports betting.
    • Significant investment in the expansion and upgrading of gambling venues.

    Threats

    •  Consolidation of the industry in the hands of a few large players.
    • Continued depressed or worsening economic conditions.
    • Continued failure to adequately regulate emerging gaming modes such as EBTs, interactive and online gambling.
    • Rise in illegal online gambling.
    • Strict regulations, such as the National Liquor Policy, which could undermine the services casinos can offer.

    Outlook

    Revenue growth in the gambling industry has shown steady growth since 2013, despite somewhat depressed economic conditions and CASA notes the sector\'s resilience and capacity to “weather a negative economic climate.” Growth is being driven primarily by the smaller, emerging segments represented by betting, LPMs and bingo, and competition is on the rise. Industry analysts suggest that online sports gambling will continue to increase in popularity and market share as broadband and mobile broadband penetration increase. According to the NGB the growing incidence of illegal online gambling and the resulting lost revenue will continue to have a negative effect on the sector. The National Gambling Policy has set out a framework for the regulation of illegal online gambling but this is unlikely to have any material effect until the establishment of the National Gambling Regulator in 2017/2018. \r\n\r\nPwC forecasts suggest that the gambling industry in South Africa “will be adversely affected in the near term by slower economic growth”. GGR growth will slow, but continue to increase at a compound annual rate of 4.8% until 2019. The composition of the market is set to shift slightly with the casino segment continuing to grow, but shedding market share to the quickly growing sports betting segment. Tsogo Sun\'s Chief Executive has reiterated such an outlook, claiming that growth will slow in the short-term but stressing that the industry\'s foundations are strong with major players “waiting for the economic uptick to come.”

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 14
    4.1. Local 14
    4.1.1. Corporate Actions 21
    4.1.2. Regulations 22
    4.1.3. Enterprise Development and Social Economic Development 24
    4.2. Continental 25
    4.3. International 26
    5. INFLUENCING FACTORS 27
    5.1. Economic Environment 27
    5.2. Labour 28
    5.3. Technology, Research and Development (R&D) and Innovation 30
    5.4. Environmental Concerns 31
    6. COMPETITION 31
    6.1. Barriers to Entry 32
    7. SWOT ANALYSIS 33
    8. OUTLOOK 34
    9. INDUSTRY ASSOCIATIONS 34
    10. REFERENCES 35
    10.1. Publications 35
    10.2. Websites 35
    COMPANY PROFILES 37
    BETTING WORLD (PTY) LTD 37
    BINGO VISION (PTY) LTD 40
    CLICKABET (PTY) LTD 42
    EGOLI GAMING (PTY) LTD 43
    EMERALD SAFARI RESORT (PTY) LTD 45
    GOLD CIRCLE (PTY) LTD 47
    GRAND PARADE INVESTMENTS LTD 50
    ITHUBA HOLDINGS (RF) (PTY) LTD 54
    NETBET (PTY) LTD 56
    NORTHERN CAPE CASINO CONSULTANTS KAIRO (PTY) LTD 57
    O L I M P (PTY) LTD 59
    PEERMONT GLOBAL (PTY) LTD 61
    PHUMELELA GAMING AND LEISURE LTD 66
    SUN INTERNATIONAL LTD 71
    TSOGO SUN HOLDINGS LTD 77
    VUKANI GAMING CORPORATION (PTY) LTD 86

    Report Coverage

    The report on the South African Gambling sector describes the current conditions, the challenges facing local role players and factors influencing the success of the industry. The report also profiles 15 companies active in the sector, including market leader Sun International Ltd which derived almost R8.5bn of its 2014 revenue from its casinos, Galaxy Bingo, which owns the licensing rights for its subsidiaries’ gambling venues, and Gold Circle Racing & Gaming Group, which operates a network of 122 betting outlets.

    Introduction

    This report focuses on the South African gambling industry, a multi-billion rand business dominated by the casino industry which currently makes up just over three-quarters of the Gross Gambling Revenue (GGR - the gross turnover minus the amount that was paid out as winnings) of this industry. The sports betting, Limited Payout Machines (LPMs) and the bingo industries (in that order) make up the remainder of an industry which plays a significant role in generating tax revenue for the government and providing employment and business opportunities within the South African economy. \r\n \r\nThe gambling industry generated an estimated R21.8bn in GGR in 2013/2014, a 4.3% annual increase and a decline from the previous year’s high of 13.6%. \r\n\r\nIn total, the industry paid R2.2bn in gambling taxes and levies, with tax rates varying per gambling mode and R1.6bn of these gambling taxes coming from the casino industry. Although casinos remain the largest segment of the industry, making up more than three-quarters of the GGR for 2013/2014, the LPMs and bingo markets continue to show significant growth in 2013/2014. Some regulatory changes are on the cards for this already stringently regulated industry, including attempts to legalise the online gambling industry and the restructuring of some of the existing regulatory bodies. In the meantime, competition offered by illegal gambling modes continues to negatively influence the revenue of legal gambling modes.

    Strengths

    • A highly regulated environment ensures that operators in the industry are clear about their roles.
    • Taxes and levies paid to government raise the importance of the industry in the South African economy.
    • The accessibility of some gambling modes like the lottery and LPMs.
    • The BBBEE compliance and CSI initiatives strengthen the industry’s position in the country.
    • The industry is labour intensive, an advantage in South Africa with its high unemployment levels.

    Weaknesses

    • Regulatory difficulties such as the over-regulation of some gambling modes and the lack of regulation of others limit the growth of some modes at the expense of others.
    • Skill shortages exist in certain key areas. The integrity of the industry is compromised by the occurrence of problem gambling.
    • The industry’s revenues are vulnerable to downward economic trends that affect consumers’ discretionary income.
    • The mushrooming of illegal online gambling sites.

    Opportunities

    • An opportunity exists for operators for the two remaining casino licences, as well as a potential new licence in North West Province.
    • Intellectual property, i.e. brands, proprietary knowledge and systems and procedures that have been developed by players in the industry could hold significant value.
    • Online gambling opportunities if online interactive gambling is legalised.
    • Technological innovations, especially on the internet and via cellphones, create opportunities for sports betting.
    • The continued roll-out of LPMs.
    • The possible acquisition of Peermont Group by Sun International will lead to further consolidation of the casino industry.

    Threats

    • Difficulty with adapting legislation to technological advances in the gambling industry threatens the growth of some gambling modes.
    • Failure to stamp out illegal gambling modes which threatens the gambling revenue of legal gambling modes.
    • For horse racing, reduced stakes and increasing competition from other forms of gambling.
    • Prolonged legislative and regulatory difficulties could continue to slow down the rollout of LPMs and complicates the granting of licences.
    • The growing popularity of unregulated EBTs.
    • The possible acquisition of Peermont Group by Sun International could reduce competition in the casino industry.

    Outlook

    The gambling industry, as a leisure industry, is dependent on consumer spending. In light of inflation, subdued employment prospects and low consumer confidence, a number of economic commentators like the IMF have forecast that consumer spending will continue to be low in 2015. In April 2015 the IMF decreased South Africa’s economic growth prospects for 2015 to 2%. The slowing economic growth is expected to slow growth in this industry in the next few years. \r\n\r\nConsumers with little disposable income are therefore likely to limit their spending on leisure, which will influence GGR growth in the gambling industry over the short to medium term. Nevertheless, the gaming industry has shown resilience in the tough economic conditions and is expected to show future growth, specifically in the areas of bingo, sports betting and LPMs. PwC’s South African Gaming Outlook: 2014 –2018 report forecasts growth in revenue for the industry with a projected 6.3% compound annual rate turnover increase to R413.7bn in 2018. GGR as a whole is expected to grow to R29.5bn, an annual increase of 6.2%. The continued roll-out of LPMs and the expansion of EBTs present opportunities for players in the gambling sector. The sports betting market is expected to continue to show some growth, although betting on sports events is expected to overtake horse racing in the next few years.\r\n\r\nThe mushrooming of illegal online gambling sites which appear to operate with impunity remains of huge concern to members of the gambling industry and a decision needs to be made by government in the near future about whether this industry is to be legalised or is to remain illegal. If the former, the law needs to be rigorously enforced to guarantee the protection of the legal gambling industry.

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 14
    4.1. Local 14
    4.1.1. Corporate Actions 19
    4.1.2. Regulations & Government programmes 20
    4.1.3. Enterprise Development and Social Economic Development 23
    4.2. Continental 23
    4.3. International 25
    5. INFLUENCING FACTORS 26
    5.1. Economic Environment 26
    5.2. Labour Resources 27
    5.3. Information Technology 28
    5.4. Technology 29
    5.5. Environmental Concerns 30
    6. COMPETITION 30
    6.1. Research and Development (R&D) 32
    6.2. Innovation 32
    7. SWOT ANALYSIS 33
    8. OUTLOOK 34
    9. INDUSTRY ASSOCIATIONS 34
    REFERENCES 35
    9.1. Publications 35
    9.2. Websites 36
    ORGANOGRAM 38
    COMPANY PROFILES 40
    BETTING WORLD (PTY) LTD 40
    BINGO VISION (PTY) LTD 43
    EGOLI GAMING (PTY) LTD 45
    EMERALD SAFARI RESORT (PTY) LTD 47
    GOLD CIRCLE (PTY) LTD 50
    GRAND GAMING HOTSLOTS (RF) (PTY) LTD 53
    GRAND PARADE INVESTMENTS LTD 55
    NETBET (PTY) LTD 59
    NORTHERN CAPE CASINO CONSULTANTS KAIRO (PTY) LTD 60
    O L I M P (PTY) LTD 62
    PEERMONT GLOBAL (PTY) LTD 63
    PHUMELELA GAMING AND LEISURE LTD 68
    SUN INTERNATIONAL LTD 72
    TSOGO SUN HOLDINGS LTD 77
    VUKANI GAMING CORPORATION (PTY) LTD 82

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