The South African Gambling Sector
In the 2016/2017 financial year the local gambling sector 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. The trend of relatively consistent double digit growth in gambling modes other than casinos has seen the overall market share shift significantly since 2010, when casinos accounted for some 85% of revenue. Currently casinos account for two-thirds of the market while other segments have made enormous gains, albeit from relatively low bases.
Casinos are facing growing competition from other gambling modes including illegal online gambling, which according to the Casino Association of South Africa (CASA) and the National Gambling Board (NGB), is a major concern for the health and future of the industry. The overall betting segment is also becoming more of a threat to the casino sector, growing 14.3% to a value of R5.09bn in 2017. It is now the second-largest gambling mode in South Africa, with horse racing accounting for 42.7% of the betting market, approximately R2.17bn, and sports and online betting accounting for the remaining 57.3%, valued at R2.91bn.
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.
||DESCRIPTION OF THE INDUSTRY
||Industry Value Chain
||SIZE OF THE INDUSTRY
||STATE OF THE INDUSTRY
||Enterprise Development and Social Economic Development
||Technology, Research and Development (R&D) and Innovation
||Barriers to Entry
||CLICKABET (PTY) LTD
||EGOLI GAMING (PTY) LTD
||EMERALD SAFARI RESORT (PTY) LTD
||GOLD CIRCLE (PTY) LTD
||ITHUBA HOLDINGS (RF) (PTY) LTD
||NETBET (PTY) LTD
||NIVEUS INVESTMENTS LTD
||NORTHERN CAPE CASINO CONSULTANTS KAIRO (PTY) LTD
||O L I M P (PTY) LTD
||PEERMONT GLOBAL (PTY) LTD
||PHUMELELA GAMING AND LEISURE LTD
||SUN INTERNATIONAL LTD
||TSOGO SUN HOLDINGS LTD