Mobile gaming is rising in popularity across all provinces in South Africa. The online casino sector is reaping the rewards. But will this continue, or will unclear regulations put the brakes on its growth?

Over the past few years, the digital infrastructure in South Africa has improved drastically. Coupled with its youthful population, more people are now using smartphones as a primary device for gaming. This has had a very positive impact on the iGaming sector, which is making huge inroads on the continent and within the country.

Introduction to Mobile iGaming in South Africa

Mobile gambling in South Africa is legal. However, these legalities operate in quite a grey, unclear area. This is because laws governing gambling are decided at both the government and provincial levels. Despite this, there has been a huge uptake in major operators, often global brands. Providing bonuses for casino games and sportsbooks, they have quickly turned the sector from a developing one to an established sector, despite these regulatory uncertainties.

For example, you can use online sports betting if the operator has been granted a provincial licence. Most people will not, however, have any clue if their chosen operator has one or not. This results in international offshore bookmakers often getting mixed up with those holding a license.

Online casino gaming is even less clear. The National Gambling Act has not legalised these games. Yet many provincial authorities have begun to embrace them, understanding that with increased connectivity, it is very hard to police access to them. Places such as the Western Cape have begun to issue provincial licenses for operators, meaning some places have access to licensed online casino games.

Factors Driving Mobile Casino Popularity

There are three main drivers that the popularity of mobile gaming in South Africa can be attributed to:

Smartphone Use

A study in February of this year found that 75% of people in South Africa game using their mobile device. This makes sense in a country where the average wage is $1,381 a month. People can’t afford to buy consoles, PCs, and a smartphone. Thus, they invest in one primary device for communication and entertainment. Around 20 to 22 million people now own a smartphone in the country. This is set to increase by a further 12 million users by 2029.

Internet Coverage

There have also been significant improvements in connections made in South Africa. Most of the country has moved from old copper phone lines to wireless networks. This was due to a collapse in the state monopoly on telecommunications. Now, around 2.47 million people are signed up for fibre broadband subscriptions.

Of this, 69% of user access the internet through their mobile device. The four major networks have 3G/4G lines, with 99% of the population being able to access 3G at the least. There are also numerous free Wi-fi projects in the major cities.

Young Demographic

South Africa also has one of the youngest populations in the world. They currently have around 27.5 million people aged between 0 and 24. Of those over 80, there are only 654,000. This is in stark contrast to many countries in Europe, where birth rates are declining and the population is aging. This youthful demographic is a key driving factor, as the demographic wants to connect and engage with new technologies.

Popular Mobile Casino Games Among South African Players

Due to these changing attitudes and regulatory improvements, the use of online casino games is up in the country. The market has been predicted to reach $19.25 million in revenue with an annual growth rate of 3.70% in the run-up to 2029. Unlike most countries, it has a high turnover forecast for in-app purchases, which is predicted to be around $189.33k. This is a very different model from most casinos around the world, in which people deposit into accounts. It suggests that issues with internet security still remain in the country, with most people preferring to make small payments and use them immediately, instead of leaving money in an account.

When it comes to the most popular casino games, South Africa is not that different from many other countries. It has a healthy fanbase for slot games, and its top ones are global, well-known names like Sweet Bonanza, Starburst, Gates of Olympus, and Hot Hot Fruit.

Yet this young demographic is also abreast of changes and has leaned into the crash gaming phenomenon. This was pioneered with titles like Aviator. Easy to pick up and play, these games involve plotting the trajectory of an aircraft and cashing out before you lose your bet.

Future Outlook for Mobile Casinos in South Africa

South Africa now needs to learn from other countries. Regulation is a clear path to revenue. This comes through licenses and taxation, which can be used for many social and societal needs. Charities, healthcare, and infrastructure can all reap the rewards.

However, overregulation is a thin line. It can send people scrambling towards the black market, as has been seen in numerous other countries and states. By engaging with world bodies like the UK Gambling Commission and Malta Gaming Authority, they can build a lasting framework that works for all.