Boosted by introduction of licensed online sports betting
The fifth edition of the PriceWaterhouseCoopers (PwC) South African gambling outlook report was released this week, revealing a total increase in gross gambling revenues for casinos, limited payout machines, bingo and betting of R26 billion during 2015, an 11.2 percent increase on the previous year.
Licensed sports betting, which is the only legalised online vertical in the South African market, was the primary driver of gains in a market that has quintupled over the past four years to R2.4 billion in 2015 (2011: R478 million).
Sports betting accounted for 54 percent of total betting GGR in 2015, compared with only 22 percent in 2011 and was the fastest-growing category in 2015 with a 28.5 percent increase in GGR. Sports betting now represents the second largest category in South Africa, behind terrestrial casinos.
Although online betting was the principal driver of growth in the sector, an increase in the number of operational bookmaker outlets was also a significant contributor.
"Growth in broadband penetration and the licencing of more online betting services will continue to propel sports betting," PwC said, projecting "double- digit increases in 2016, 2018 and 2020, interspersed with low- to mid-single-digit gains in 2017 and 2019.
"For the forecast period as a whole, we project sports betting GGR to increase at a 15.8% compound annual rate to reach R5 billion in 2020."
PwC predicts the total South African gambling market will deliver gross gambling revenues of R34.8 billion in 2020, a 6.0 percent compound annual increase on the R26 billion achieved in 2015.
PwC's full report can be read here: http://www.pwc.co.za/en/assets/pdf/gambling-outlook-2016-2020.pdf
Online Casino News Courtesy of Infopowa