From 1965 to 1994, gambling was completely banned. Land-based casinos only gained legal status in 1996, following a change of government and the adoption of the National Gambling Act.
Furthermore, despite the fact that most traditional online casino games are prohibited in South Africa, the legality of online casino gambling is still in question. However, enterprising operators are finding ways to comply with the new rules.
This is achieved through “number games,” which resemble classic casino games such as slots, roulette, and, more recently, crash games. These games can only be played on licensed iGaming sites. They are more similar to sports betting, which helps them comply with South African betting laws.
However, the legislative environment could change at any time, as bills from 2018, 2022, and 2024 aim to create a South African legislative framework for online gambling.
Following the legalization of casinos and the introduction of a single national lottery under the National Gambling Act of 1996, the country’s gambling market has changed significantly. According to statistics from the National Gambling Board (NGB), gross gaming revenue (GGR) in the South African market amounted to €2.3 billion in the 2022–2023 financial year, up 36.9% on the previous year.
The COVID-19 pandemic has led to unprecedented growth in South African online gambling. The compound annual growth rate (CAGR) is forecast to be 6.18% from 2024 to 2028, bringing the market size to approximately €64 million by the end of 2028.
The popularity of online gambling is linked to low mobile phone tariffs and the widespread use of smartphones among the population. Another important factor is “load shedding,” i.e., fairly frequent power cuts. Online casinos have become a source of entertainment for people during power outages.
Each of the country’s nine provinces has its own independent licensing authority, in addition to the National Gambling Board. Operators may find it difficult to navigate the different rules and licensing requirements set by these provinces.
An initiative to “harmonize,” or create a single licensing system for online casinos in South Africa, is moving slowly, highlighting the need for potential operators to adapt to changes in the law.
In addition, it should be noted that there are a large number of casinos licensed by offshore countries that serve players from local jurisdictions. Although this practice is technically illegal under local law, there have been very few cases of prosecution or active blocking of such websites to date.
Operators may consider obtaining a license in other reputable jurisdictions, such as Curacao or Malta, if they wish to enter the South American market. As they are more reliable and secure, local players are generally well informed and prefer licensed offshore platforms. They guarantee that players’ interests will be protected and that their games have been properly certified.
