South Africa’s iGaming market is on a remarkable growth trajectory, set to reach a total revenue of approximately EUR 64.9 million by 2028. iGaming solutions supplier SOFTSWISS shares its South African market report.
In light of the recent acquisition of Turfsport, a leading South African provider of wagering solutions, the SOFTSWISS report offers first-hand practical experience. The piece explores peculiarities distinguishing South Africa, including provincial licensing, sports betting, and gaming preferences.
Provincial licensing
Online gambling in South Africa is governed by nine provincial regulatory bodies which operate under the National Gambling Board’s framework. Each body is responsible for licensing various gambling activities, including online sports betting, in their provinces. Operators must understand the nuances and explore licensing options within each region’s regulatory framework.
Christian Neuberger, CEO at Turfsport, adds: “While national legislation continues prohibiting interactive gaming nationwide, several provincial gaming boards have taken the initiative in recent years to expand fixed odds betting options. This development has significantly enhanced the appeal of online betting, resulting in a sharp increase in iGaming revenue and the generation of gaming taxes.”
Sports betting as a major driver with high interest in esports & fantasy sports
Online sports betting remains a major driver of the South African iGaming market. In 2024, this sector’s estimated volume is approximately EUR 24.3 million out of ~EUR 51 million expected for the whole iGaming industry. At the same time, sports betting is experiencing a notable shift in player preferences and market dynamics. For example, the horse racing popularity has decreased slightly, with younger audiences favoring other betting options. However, it remains a valued tradition among older generations and those with discretionary spending power.
Esports betting and fantasy sports are growing segments within the South African market. According to Statista (2021), 51% of South African survey participants are interested in betting on esports, and 39% express interest in playing fantasy sports for money. In this aspect, South Africa outperforms the United Kingdom, the United States, Brazil, India, Argentina, Mexico, and Denmark.
Gaming preferences
Regarding content preferences, the recent explosive rise of ‘сrash’ games such as Aviator underscores that the South African audience prefers simplicity and instant gratification. However, traditional casino experiences also remain in demand. Operators have responded by adapting conventional online casino game mechanics to comply with existing sports betting regulations. This numbers-style draw games resemble classic casino offerings but adhere to the legal framework as ‘betting events’.
With the increasing mobile internet penetration, more affordable data packages, and widespread smartphone usage, more people in South Africa are turning to mobile gaming. This trend is particularly noteworthy because most of the population may not have regular computer access. Operators should prioritize mobile compatibility and user-friendly interfaces to reach the audience effectively.
Vitali Matsukevich, COO at SOFTSWISS, comments: “Sharing the SOFTSWISS market report, we emphasize our focus on the South African iGaming market’s potential. With SOFTSWISS’ expertise in iGaming and Turfsport’s local market knowledge, we are set to effectively address the specific needs and opportunities in South Africa. The insights from this report are instrumental in guiding our strategies and ensuring that our solutions are well-aligned with the evolving landscape of South African iGaming.”
Overall, the SOFTSWISS market report offers a comprehensive overview of iGaming in South Africa, from the historical context of industry development to a detailed player profile and local trends.
Original article: https://www.yogonet.com/international/noticias/2024/03/15/71287-next-brazil-on-the-horizon-softswiss-unveils-south-african-igaming-market-overview
