South Africa’s gross gaming revenue exceeded R34 billion in FY 2021/22, and based on the amazing performance of some of the greatest industry players in the country, the number is getting even higher as we speak. Also, the latest data provided by the National Gambling Board shows that the gross gambling revenue experienced a 48% increase between the fiscal periods of 2020/21 and 2021/22. All of that is a huge boost to the country’s gambling market.

If you wanted to learn all about the key drivers of the change, keep on reading.

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THE ONLINE GAMBLING SECTOR

The online gambling market is one of the key drivers of the wagering industry in South Africa, as its revenue is expected to reach $736.3 million in 2023. This category of gaming is booming in the area, especially because of the nation’s strong passion for sports betting, as well as the increased mobile and internet penetration in the country. The providers are looking to expand their reach by staying on top of new technologies that include AR and VR gaming, live gaming, video slots, cryptocurrency payments, and more.

As for the players, they are mainly attracted by the valuable bonuses that today’s operators have to offer. The majority of providers treat their members with rewards like no-deposit bonus, low-deposit casino gaming options, cashback prizes, free spins, and other exciting freebies and promotions that allow users to play more games for their money. Moreover, new players are usually treated with welcome bonus packages upon account registration. However, all rewards come with particular wagering requirements, and it is advised to read all relevant details before claiming any.

TSOGO SUN GAMING

When it comes to land-based casino businesses, Tsogo Sun Gaming is the largest hospitality business in South Africa. The company’s key shareholder is Hosken which owns almost 50% of the operation and also holds a 37% market share of the country’s casino industry. Hosken is also the owner of Vuikani Gaming – a well-known gaming machine operator and the largest route operator in the country.

Tsogo Gaming holds a total of 13 casinos, several VSlots operations, and 23 Galaxy Bingo sites. In 2021, the company saw a massive rise in earnings which increased by 88% when compared to the previous six months. On top of that, the income generated from the company’s casinos, limited payout machines, and bingo operations accounted for more than 90% of the company’s overall revenue for the period of six months ending with September 30, 2022.

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SUN INTERNATIONAL

Even though Sun International’s revenue took a significant hit in the past few years, the recent results have shown that the company has been getting back on track.

Namely, in 2022, the business saw a 44% rise in group income, which has now reached R11.3 billion. As for the group headline earnings, they were up by more than 100%. According to the National Gambling Board, Sun International holds a 32% market share of all operational gambling venues in the country.

The company’s gaming income comes from its  13 casinos. However, 80% of that revenue is accumulated by SunBet and Sun Slots. Thanks to their team efforts, the revenue has also grown by 36% in 2022. SunBet, in particular, earned a record amount of money in the given year, and its expansion is a big step toward the company’s aggressive growth targets. Moreover, Sun International has already extended its business to new markets on the continent. It finalized a 70% investment in SunBet Africa Holdings, which is now allowed to legally operate in Kenya, Zambia, and Ghana.

PEERMONT GLOBAL

In 2015, Sun International tried to buy out Peermont Global for R9.4 billion. However, the deal collapsed after the failure in trying to win the antitrust approval, so Sun International had to pay Peermont R675 million in damages. The reason why such a conglomerate was eager to acquire Peermont Global lies in the fact that the business holds 21% of the market share when it comes to operational casinos in South Africa. Adding such a big chunk to the market to their existing venues would enable Sun International to completely dominate the market.

Peermont Global is a large operation that consists of eight land-based casinos, including the Emperors Palace in Johannesburg which is one of the biggest and most luxurious venues in South Africa. Additionally, the company operates an online sports wagering platform named PalaceBet.

The amount of money spent on gambling is growing, and South Africans are facing more and more opportunities to engage in different kinds of wagering. From large land-based venues to fun online gambling sites, the locals keep spending time and money supporting the key industry players on the market, and this level of growth is unlikely to drop any time soon.

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This article was originally published by Tanyaradzwa Pamhirwa.