Sports Betting Grips Africa
PwC believes South Africa’s gaming industry will enjoy 6% compound annual growth from now until 2020, pushing annual revenue to R34.8b ($2.6b) from just R26b ($1.94b) in 2015.
According to PricewaterhouseCoopers, casino revenue grew 6.7% to R18.2b in 2015 and PwC expects the casino market to be worth R22.4b by 2020. But the vertical’s share of the overall pie is shrinking. Casinos accounted for 70% of 2015’s overall gambling revenue, down from 73% in 2014 and from 81% in 2011.
South Africa’s betting and limited payout machines (LPM) operators. LPM, which are based outside casinos and offer low-price gambling, reported revenue of R2.4b in 2015, up 13.7% year-on-year. PwC expect another double-digit rise for LPM in 2016, but believe growth will slow in the coming years, leading to an LPM market worth R3.4b by 2020.
The market leader was sports and horserace betting, which rose 28.5% to R4.4b in 2015. The gains were driven by sports betting, which improved nearly 52% to R2.4b. Sports betting reveandynue has quintupled in the past five years, rising to 54% of total betting revenue in 2015 from just 22% in 2011, and PwC expects sports’ share to hit two-thirds by 2020.