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PwC: South Africa’s gaming industry remains positive

By Rob Starr, Content Manager,

PwC’s inaugural edition on the gaming industry entitled:  ‘Betting on the future: South African gaming outlook, 2012-2016 finds that South Africans wagered R257.6 billion on gambling in 2011, which equates to more than R8 000 per adult (18 years and older). Overall turnover, the total amount wagered, for all types of gambling rose 10.6% in 2011 following the 8% increase in 2010. Turnover is projected to increase at a 6.3% compound annual rate during the next five years to R349.6 billion in 2016.

Casino gaming is by far the largest category, generating R14.9 billion in gross gaming revenues, the amount gambled less that returned to the gambler, in 2011, 80.7% of the total. Sports betting is next at R2.2 billion. Limited payout machines (LPMs) and bingo have been the two fastest-growing components of the market albeit off a low base, in both cases more than doubling between 2007 and 2011. LPMs contributed R1.2 billion to the total in 2011, while bingo accounted for R235 million.

Casino gross gaming revenues in 2011 recorded the largest gain since 2007 at 5.8%. With the expectation of slow economic growth in the near term, turnover and gross gaming are forecast to grow at low rates during the next five years. Casino gross gaming revenues will rise at a 5.3% compound annual rate to R19.2 billion in 2016 from R14.9 billion in 2011. Casino taxes and levies totalled R1.4 billion in 2011.

In contrast with the casino market, Gauteng ranked only third in LPM gross gaming revenues at R157 million, representing only 13.4% of the total. The Western Cape had the largest LPM market in 2011 at R423 million, with KwaZulu-Natal next at R274 million. The Eastern Cape at R137 million was the only other province to generate revenue of more than R100 million.


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