Across the globe, the online gambling industry has been thriving in the past decade, with an exponential growth in both operators offering online Games platforms and players wanting to spend time in the online Games sphere. This has also been the case in South Africa, where the online gambling industry is growing despite a complex regulatory environment. Many big operators such as Jackpot City SA offers a great variety of games to the South African players. With the combination of internet access becoming more widespread and technology continuing to advance, online Games have become a more accessible type of entertainment.
However, even though the industry is flourishing, there are still some grey legal areas impacting the flow of operation. This has caused discussions about potential regulatory reforms, which could further enhance the growth of this sector.
How the online gambling industry has been growing in South Africa
In the past decade, online gambling has grown in South Africa as a product of widespread internet access across the country, and the increasing availability of smartphones. According to a report by the National Gambling Board, the gross gambling revenue (GGR) for 2022 amounted to ZAR 47.2 billion, which is a 36.9% increase compared to 2021, and ZAR 815.1 billion was wagered in the gambling industry, which is a 45.6% higher than the previous year.
This increasing trend aligns with the global growth of the online gambling sector. According to Statista, the global revenue in the online gambling market is projected to reach US 97.15 billion in 2024. On the African continent, South Africa is a key player, also when it comes to this sector.
Increased online presence
In the past 5 years, there has been a surge in online presence among people in South Africa. As more people can access cheap and fast internet connection from almost anywhere in the country, more people have gained access to the world of online entertainment, including online Games such as Jackpot City SA. Coupled with the widespread use of smartphones, more people spend leisure time online.
What is especially intriguing about online Games such as Jackpot City SA is the thrill of the potential gains and risks of losses as one wagers money on various types of games. Furthermore, it is an easy pastime when waiting or whenever one has some extra minutes on hand, since most online Games offer a user-friendly interface, which makes it easy to play a few games on the go.
Legal framework and challenges
There is no doubt that the online gambling market in South Africa is growing in popularity. However, this sector does exist in a complicated legal landscape. All forms of gambling in South Africa are governed by the National Gambling Act from 2004, which on the bottom line prohibits online gambling. From within the country, it is only online sports betting, which is allowed, but online Games are banned from operating within the country’s borders. This legal ambiguity has instead created an environment consisting of offshore online Games, which can target the South African market without being subject to local regulations.
This is where the legal framework enters a grey area: The National Gambling Board has initiated some attempts to regulate offshore platforms, however players have at large been able to access these sites without any legal consequences. The South African government has also recognized the need to address the growing popularity and demand for online Games and the grey areas surrounding the regulations. Discussions have been going about introducing reforms to legalize and regulate online gambling, especially since it would allow the country to capitalize on the industry through taxes and licensing fees.
The socioeconomic impacts of online Games
On top of providing entertainment and the potential for some financial rewards, there are also some risks connected to online Games. A study by the South African Responsible Gambling Foundation (SARGF) has found that around 4.7% of South Africans are considered at risk of developing a gambling problem, and 0.4% has been identified as problem gamblers. It is especially the convenience and anonymity of online Games that can make it easier for individuals to lose control of their gambling habits.
Proponents of online Games are also speaking out about these numbers and argue that by legalizing and regulating the sector would allow to better oversight the implementation of responsible gambling measures. South Africa could take inspiration from other countries where online gambling is legal, as operators often are required to provide tools for players to set limits on their spending and time spent on the platform. Furthermore, other countries where online Games have been legalized have also ensured that a portion of the revenue generated from online gambling is being allocated to programs which aims to help individuals already affected by problem gambling.
Concluding remarks – looking into the crystal ball of the online Games sector in South Africa
Proponent of legalizing online Games in South Africa is pointing towards the potential of this sector to boost the economy of South Africa, as a regulated online gambling industry would create jobs, generate tax revenue, and attract foreign investment. Additionally, the growing popularity and demand for online Games will make the calls for regulatory reforms to become louder. This is especially bound to the fact that critics point towards the current legal landscape being outdated, since it is not reflecting the realities and consumer behaviors of the digital age. It can therefore be expected that changes will happen in the online Games industry in South Africa in the coming years.
