Online Gambling Surges While Brick & Mortar Casinos Slip

South Africa’s gambling industry is shifting gears fast. According to Statistics SA, income from online betting and bookmaker services skyrocketed by 72%, pushing gross gambling revenue up to R59.3 billion in the 2023/24 financial year. That’s up from R47.2 billion just a year before.

In a stark contrast, casinos once held 84% of the market back in 2009/10; now online betting accounts for R152.6 billion in revenues, while brick-and-mortar casino takings are shrinking. Gambling now makes up 1.6 % of household spending. Clearly, many punters prefer clicking a spin button at home over finding a parking spot at their local casino or pub with limited payout machines.

SunBet Drives Growth at Sun International

Sun International’s latest results highlight the same trend. The group’s traditional urban casinos, such as the iconic Sun City, saw income drop by 1.4 % to R3.2 billion. To fight that slump, Sun International is planning a makeover: it will upgrade casino floors, refine machine mixes and invest in service improvements.

Meanwhile, the online platform SunBet is thriving. Revenue climbed a whopping 70.7 % to R874 million, and adjusted earnings jumped to R292 million. Slots income alone grew by 128.7 %. CEO Ulrik Bengtsson, who took the helm in July, said the company is focusing on digital conversion and wants to build a market‑leading omnichannel platform. It’s clear where future investments are headed.

Sun Slots Keeps Physical Play Alive

Not all is doom and gloom for physical gaming. Sun International’s limited pay‑out machine division, Sun Slots, posted a 2.2 % rise in income to R701 million. While online gambling steals the spotlight, these machines show that there’s still a loyal customer base for spinning reels in person — even if the growth is modest compared to digital.

New Alliance Aims to Shape African iGaming

In broader continental news, the African iGaming Alliance (AIA) appointed Peter Kesitilwe as its first CEO on 8 September. Kesitilwe, who previously led the Botswana Gambling Authority, said he intends to build a “vibrant, sustainable and competitive” industry with a strong focus on consumer protection.

The alliance, backed by prominent companies such as betPawa, Betway, 888Africa, and Sportybet, aims to foster collaboration between operators and regulators across 20 countries. Its mission is to establish a fair regulatory and tax environment that encourages innovation while maintaining a safe and transparent gambling environment.