In this article, we’ll explore the key factors for success and offer practical tips for iGaming operators considering entry into the South African online gambling sector.
Key Insights
- Online casino-style games remain technically prohibited, but fixed-odds betting licences issued by provincial regulators provide a viable entry point.
- Provincial licensing, particularly in regions like the Western Cape, is essential for legal operation.
- A mobile-first strategy is vital, with over 90% of players accessing smartphone platforms.
- Preferred payment methods include EFT, vouchers, and local digital wallets; bonuses in ZAR are highly valued.
- Advertising restrictions apply; indirect acquisition channels such as affiliates and content marketing are most effective.
- Partnering with certified B2B providers helps ensure legal compliance and streamlines the licensing process.
Overview of the South African Gambling Market
South Africa’s gambling industry has grown rapidly over the past few years, driven by widespread mobile accessibility, a strong sports betting culture, and growing interest in online casino-style experiences. According to the National Gambling Board, the industry recorded a Gross Gambling Revenue (GGR) of €2.920 billion for the 2023/24 financial year, reflecting an impressive 25.7% growth from the previous year.
Online gambling is a major force behind the industry’s growth in South Africa. According to a report by Grand View Research, the online casino segment reached €128.0 million in 2024 and will grow to €226.2 million by 2030, achieving a compound annual growth rate (CAGR) of 9.8%. Sports betting remains the dominant player, contributing roughly 60% of the sector’s total revenue.
With the number of smartphone users in South Africa expected to grow by 12 million in the coming years, an increase of 86.83%, mobile-first platforms are becoming increasingly vital. As mobile data continues to become more affordable, these platforms offer seamless, fast-loading betting experiences that users increasingly demand.
While complex, the regulatory environment is steadily evolving to adapt digital gaming solutions, offering early movers the advantage of establishing brand recognition and trust. With a young, tech-savvy population and a strong appetite for sports betting and online gaming, the South African gambling landscape may offer fertile ground for sustainable commercial success.
Is Gambling Legal in South Africa in 2025?
How to Start an Online Casino in South Africa (2025 Guide) | SOFTSWISSNational Gambling Act of 2004 lies at the core, defining permissible gambling activities while strictly prohibiting unlicensed interactive gambling.Online sports betting is legal, provided the operator holds a valid provincial licence. At the same time, the legal status of online casino games and poker is less clear-cut. Technically, the National Gambling Act does not currently legalise these forms of gambling nationally. Nonetheless, certain provinces, notably the Western Cape, have adopted a more progressive stance. By interpreting existing regulations in a broader sense, they have begun issuing licences for online casino-style offerings, often classifying them under fixed-odds betting or limited payout machines. This approach provides a legally defensible route for operators to offer casino-like experiences.
It is essential to add that South Africa’s regulatory landscape constantly changes. Legislative modifications proposed in 2018, 2022, and again in 2024 have all called for the full legalisation of online casino gambling. While these changes are still under consideration, the growing momentum indicates that broader legal reform may not be far off.
How to Get a Gambling Licence in South Africa?
Operators looking to enter South Africa’s regulated online gambling market must apply for a licence through the relevant provincial licensing authority (PLA). Although the overall licensing process is similar across provinces, the gambling activities permitted, such as online sports betting or casino-style games, can differ depending on how each province interprets and applies national legislation. Generally, the licensing process includes four key stages:
- Application Submission: Operators must submit a comprehensive application to the relevant provincial authority. The application includes a detailed business plan, evidence of financial stability, ownership and management structure, and a clear outline of the proposed gambling platform. Highlighting robust B2B partnerships (e.g., with payment providers or software developers) can strengthen your case.
- Due Diligence: Provincial regulators conduct rigorous background checks on the applicant, its directors, and key personnel. Expect scrutiny of financial records, criminal history, and reputational standing, often in collaboration with law enforcement. Transparency and a clean track record are non-negotiable for B2B operators seeking trust.
- Technical Assessment: The platform must pass technical evaluations to ensure compliance with provincial standards. This includes verifying game fairness, implementing robust anti-money laundering (AML) measures, ensuring player data protection, and embedding responsible gambling tools.
- Licensing Decision: Once assessments are complete, the provincial board will issue a licence upon payment of applicable fees. The licence specifies approved activities, such as online sports betting or, in progressive provinces like the Western Cape, casino-style offerings
The application review and approval process can range from several months to over a year, depending on the province and the complexity of the application.
While national legislation still formally prohibits online casino and poker games, B2B operators may find legitimate market entry routes in provinces that provide regulated environments for these products. Localised legal expertise and provincial engagement are essential when structuring operations in South Africa’s evolving online gambling landscape.