According to a recent report published by auditing firm PwC, South Africa’s gross annual gambling revenues (GGR) are forecast to reach almost £2bn by 2021.
The research study has revealed that the country’s gaming revenues are expected to hit R35bn (£1.86bn) in 2021, increasing at a 5% compound rate from R27 (£1.43bn) this year.
It added gambling taxes and levies would extend to R3.5bn (£190m) by 2021, rising at a 5.2% compound annual rate.
Casinos, which currently employ over 10,000 people and account for 66% of the total GGR, remained the largest contributor to gambling taxes and levies at R1.8bn (£100m), according to the sixth edition of the Gambling Outlook for South Africa: 2017- 2021.
Casino operators were followed by the sports betting segment at R430m (£22.8m). Sports betting revenues climbed 21% in 2016 to R2.9bn (£150m), rising over three times the R847m (£45m) generated in 2012. The sports betting market remains promising ground as it is projected to hike 12.3% to R5.2bn (£280m) in 2020.
A key factor behind this growth in betting volume was the staging of major international tournaments in South Africa in recent years, including the FIFA World Cup, Rugby World Cup, and the European Championships.
PwC’s report pointed out that bingo is the fastest-growing market, accounting for 5% of the country’s total GGR in 2016. Gauteng was credited with 65% of the total growth in bingo GGR, with a 37.6% climb to R813m (£43m). This sector is forecast to hit R2.2bn (£120m) in 2021, rising at a 12% compound annual rate.
Pietro Calicchio, Southern African Leader for PwC’s Hospitality and Gaming Practice, said: “The gambling industry in South Africa will continue to be adversely affected in the near term by slower economic growth, but improving economic conditions over the latter part of the forecast period will aid growth.
“The industry remains an important contributor to the economy through the creation of jobs, continued capital expansion and the payment of taxes to both provincial and national government.”