South African Gambling Revenue Rises 3.8% in FY 2016/17September 11, 2017 4:47 pm
Last week, South Africa’s National Gambling Board released its latest results for the 2016/17 financial year ending March 31st, and the news was excellent with the industry generating revenue of R27billion (US $1.2 billion), marking a 3.8% improvement compared to the previous financial year.
Dominating the market was the country’s land-based gambling venues which accounted for R17.9 billion, or more than 66% of overall revenue. Furthermore, 73.2% of total gambling turnover was derived from brick-and-mortar casinos, despite their slots and table game operations falling by around 1% year-over-year.
A slight fly in the ointment, however, was an almost 2% decline in land based revenue versus last year, as well as a contraction in turnover, with the National Gaming Board putting the decline down to six of South Africa’s provinces opting to reduce their operating positions.
Meanwhile, sports betting and horserace betting now accounts for 19% of the country’s overall gambling revenue, and last year generated R5.1 billion in revenue, or 14.3% more, year-on-year. In addition, both vertices noted impressive growth in FY 2016/17. Sports betting revenue, for instance, surged by a massive 22% to R2.6 billion over the period, while tote betting was also higher by a solid 11% at R1.1 billion.
South Africa also allows gambling on sports and racing over the internet, although no figures have been released differentiating land-based revenue from that of online casinos. Nevertheless, the country has experienced a surge in online gambling recently, with more and more Africans opting to place bets via their computers and smartphones.
Finally, bingo continues to be a popular pastime amongst its citizens, and in FY17 reported an almost 37% increase in revenue to around R1.3 billion, giving it a 5% share of the overall gambling market. According to the National Gambling Board, the huge increase was mostly due to more bingo operations being offered in the North West and Eastern Cape provinces.
South Africa passed a law allowing the regulation of land-based casinos in 1994, with analysts predicting revenue will rise to around R30.3 billion by 2019. South Africa also has the advantage of having a large population of 53 million people, as well as a GDP of $312.798 billion, and GDP Per Capita of $13,200.