Online Gambling Flourishes In South Africa Under Nationwide Lockdown

South Africa has had a love affair with gambling that extends as far back as the late 60s and early 70s. It not uncommon to have a friend, relative or colleague who has a funny story about visiting one the countries numerous underground casinos during the apartheid era.

However, with the introduction of a truly democratic society came some unexpected changes, in particular, the ANC governments focus on eradicating backroom casinos. By many, this was seen as a push by local license holders such as Sun International to ensure that the newly released wealth began flowing towards regulated operators.

 Brick And Mortar Gambling Only

Under the National Gambling Amendment Act, 2008 (Act No. 10 of 2008) South Africa legalised gambling on games of chance, table games and sports betting but only for licensed operators.

This allowed local license holder the opportunity to add new casino complexes such as Grand West in the Western Cape but still did not create any opportunities for smaller online casinos.

The only niche industry that has shown some resilience has been Limited Payout Machines, more commonly known as bar machines or bar slots. These operators are allowed to place anywhere from 5-40 such bar slots in taverns, restaurants, sports clubs and adult entertainment venues.

 Blacklisted But Flourishing

As has happened in many countries the recent nationwide lockdown in South Africa has harmed the local gambling economy, with one exception, online gambling is flourishing.

With South African’s accustomed to gambling but now staying at home their only recourse has been the unregulated online gambling market.

The one market that the local government has refused to look at licensing, potentially the result of lack of insight and generous donations from land-based license holders, is the online casino space.

It is hoped that with the shift in market spend will encourage the gambling board to follow the global trend of regulating the online casino sector as it provides safety for consumers, generates job opportunities and will ensure a growing revenue stream for the country as South Africa's online adoption increases.