What is the state of play with iGaming in South Africa?

In September 2020, the iGB Africa Report revealed that some of the leading players in the African iGaming market were multi-market operators. South Africa attracted the likes of Powerbets and Betway to its country, with the latter operating its own ‘Betway Africa’ offshoot that spans the most influential nations for online gambling in the continent.

Mathew Symmonds of Web Analysis Solutions, described Africa’s iGaming industry as “not one of the priorities” for “many European bookmakers”. However, that may be because of a string of “local heroes” within each nation’s market, according to SB Betting’s chief operating officer Michal Glowacki. Glowacki believes that many intercontinental iGaming operators have mostly “failed” to resonate in sub-Saharan nations in the same way as the western world.

One of the biggest reasons that local operators continue to thrive ahead of more established overseas iGaming operators is the cultural divide. Every African nation has its own cultures and traditions and too many of the larger intercontinental brands overlook the importance of resonating directly with locals. Yellowbet’s managing director Neil Wilkie says that bettors in African nations “only know what’s going on in [their] own immediate vicinity”. Wilkie used the example of bettors in Tanzania not being fussed about playing a slot’s “jackpot being linked to other African countries”.

It’s a very similar story in South Africa, with many of the most popular and reputable online casinos being those founded within the nation’s borders rather than offshore arrivals. The flourishing nature of local casino operators is aided by the growing importance of online directories that help to pinpoint the positive traits of operators and rank them accordingly in lists of the best online casinos in South Africa. This not only gives consumers a good handle on the safest and most reputable platforms to play, but it also drives operational standards among the casinos themselves to strive to maintain their solid rankings.

There is plenty of time for iGaming technology to mature in South Africa

One of the main reasons that there is such optimism surrounding the iGaming scene in South Africa – and indeed elsewhere in the continent – is the growing percentage of the young generation. While this has developed in the news and over the last years, almost half of the entire African population is due to be under the age of 25 by 2050. This means that the concept of immersive, state-of-the-art iGaming technology will capture the imagination of bettors of legal age. Increased accessibility to iGaming platforms – through growing mobile penetration – also suggests that subsectors of iGaming are likely to flourish in South Africa and beyond too.

Online sports betting is sure to take flight, with established European online sportsbook Betway demonstrating how intercontinental operators can successfully onboard African customers across multiple gang verticals – online casino, sports betting and eSports betting too. According to Zimbabwesituation.com, almost a quarter (24%) of all iGaming revenue in South Africa is already generated from sports betting. The penetration of smartphone and tablet devices is also going to reap dividends for operators that deliver fully responsive gaming experiences across all platforms. By 2018, mobile penetration in the continent had hit 80%, so it’s clear that the appetite for mobile iGaming will continue. Particularly as the continent evolves into an increasingly younger, tech-savvy demographic.

Perhaps the biggest challenge awaiting the iGaming operators of South Africa and those elsewhere in Africa is delivering safe and responsible gambling experiences. Steering players away from ‘black market’ operators that offer unlicensed and unregulated games leaves too many people at risk of problem gambling and unfair gaming.

The likes of the Western Cape Gambling and Racing Board (WCGRB) are a prime example of a regulatory body that’s seeking to control and regulate online gambling within the Province of the Western Cape. The more regulatory bodies in South Africa, the better. It will be easier for legitimate sites to flush out those simply seeking to prey on the vulnerable.

Although, more regulatory bodies and individual jurisdictions within South African Provinces also brings its own challenges. Sean Coleman, CEO of the South African Bookmakers Association, said that the jurisdictions in each South African Province have “their own status”, which means that for “suppliers of product” each game is tested and regulated differently within the country. Coleman believes that “national norms and standards” are imperative to create a unified approach to iGaming that can futureproof its industry and economic benefit.