What Does the Future Hold for the Online Casino Industry in South Africa?
The gambling industry is quietly going from strength to strength all across Africa. As one of the strongest economies on the continent, it’s no surprise that South Africa has also witnessed considerable growth in the sector. Indeed, a recent report from PwC estimated that gross gambling revenue (GGR) would enjoy a compound annual growth rate (CAGR) of 8.1% in the four years leading up to 2021.
However, this prosperity is not shared across all aspects of the South African gambling scene. In fact, only a handful of gambling exploits are actually legal in the country; sports betting at licensed operators remains popular, but all other activities are outlawed. That includes visiting online casinos, including those based outside of national borders. So is the situation likely to change in the future?
The status quo
According to the most recent legislation, it is a criminal offense for South Africans to visit online casino operators based within the country. As well as confiscating any winnings accrued by the individual in question, the government also threatens transgressors with exorbitant fines of up to ten million Rand and a jail sentence of ten years, or a combination of both.
Of course, gambling aficionados have sought ways to circumvent those obstacles. Offshore casinos provided just such an opportunity until the authorities spotted that loophole and sealed it, making it also illegal for both parties to engage in the activity. While visiting an overseas operator doesn’t incur fines or sentences, winnings can still be confiscated.
Perhaps it’s partly due to these factors that the popularity of Bitcoin usage in South Africa has been skyrocketing in recent years. As a deregulated and decentralized cryptocurrency, Bitcoin offers its users unprecedented anonymity and privacy, meaning they can conduct transactions without their identity being revealed. Where they choose to do so is their own business.
Evolving attitudes?
Despite the hitherto heavy-handed approach from the government, it’s undeniable that online gambling remains popular in the country. Indeed, it’s rumored that the treasury has already confiscated more than 3.5 million Rand to date, signaling that many South Africans have paid little heed to the law and sought to indulge their appetite for gambling regardless.
While that figure is certainly no small trifle, the amount of revenue that the government could potentially earn if it legalized, regulated and taxed the industry would dwarf it by comparison. For example, the Italian government rakes in over €7.2 billion on an annual basis from the gambling sector and the populations and economies of the two countries are very much comparable.
That’s a significant amount of money and one which South Africa could certainly use for a variety of different social, educational and healthcare projects. Given that the popularity of online gambling seems to only grow with each passing year, it remains to be seen how long South Africa can continue to ignore its lucrative potential and retain a blanket ban. The smart money would say that something has to give in the not-too-distant future.
Online gambling may not be legal in South Africa at the present time, but changing attitudes within the government and among the populace could suggest it won’t stay that way in the future.