iGaming has a lengthy history in South Africa, which is actually the home of online casinos! The industry has been able to grow thanks to innovation and convenience, despite challenges from unclear legislation. It also received a sizable boost from the COVID-19 pandemic, which has forced regulators to take another look at the existing laws.
So, what is the history of iGaming in South Africa, and how could the industry shape the country’s future?
Before online became everyday
We can’t talk about the growth of iGaming in South Africa without first recognising the framework provided by land-based gambling. There have been rules on gambling in the country since the late 1600s, when betting on horse racing was a popular pastime.
Betting on horse racing was such a popular form of gambling that it was the only kind not banned by the 1965 Gambling Act. While the Act banned the practice of gambling on the whole, it continued in ‘Bantustans’ – those areas of the country designed to segregate the black, native population¹.
After realising they were missing out on valuable income from gambling, the government relaxed the laws in the National Gambling Act of 1996. This Act legalised additional forms of gambling, including casino games, bingo and lotteries, and paved the way for gambling in the country.
Starting out micro
Did you know that the first online casino actually originated in South Africa? Well, it’s true – the very first online casino company, Microgaming, was founded in Durban, South Africa, in the early 1990s. In 1994, the company was the first to develop software for playing at online casinos.
You don’t need us to tell you how important Microgaming’s developments were to iGaming. Their continued popularity is a testament to their early influence. They’re likely behind some of your favourite online casino games, especially if you’re a fiend for slots! Microgaming also made South Africa the centre for the development of iGaming.
Growing globally
Since the early days of iGaming, the industry has seen staggering levels of growth. The online gambling industry was worth an eye-watering $95.5 billion in 2024, and is expected to continue growing at an average rate of 10.5% over the next 10 years². Naturally, this growth hasn’t passed by South Africa, where the industry remains strong despite murky legislation caused by the failed 2008 amendments.
Why is iGaming so popular?
iGaming captures the fun of playing your favourite casino games and combines it with the convenience of playing from anywhere at any time. That means it’s possible to play on the go without having to dress up or travel to go to a casino.
More games
Convenience isn’t the only reason iGaming is so popular. Almost all of your favourite casino games can now be found online, giving a much-needed lease of life to some classics. Online bingo has left the dim bingo halls in the dust, while online slots have become unrecognisable from the machines that lurked in the dark corners of pubs.
Innovative versions of classic games are some of the most popular online casino games – interactive or i-slots are one example of this. They add an extra layer of fun with mini-games that influence the overall game outcome. These can be puzzles or click-and-point games where players have the chance to earn exclusive bonuses. There are even options for players who miss the feel of in-person games to play live games, where they can interact with a dealer or croupier in real time.
More bonuses
This brings us nicely to the next reason for their popularity: bonuses! While bonuses are rare at land-based casinos and are generally reserved for the highest of the high rollers, everyone can enjoy them when iGaming. There are even no-deposit and low-deposit options to allow those on a tight budget to join the fun.
Back to the future
One way the industry keeps players coming back for more is through constant innovation. Whether that’s adopting virtual reality or accepting cryptocurrency, iGaming is always at the forefront of change.
Becoming virtual reality
Many of the most popular online casino games are now offered as VR games. Players use high-tech headsets to immerse themselves within a realistic casino environment, complete with intricate graphics and bustling sound design. Players can even customise their own avatar that represents them in the virtual world and is able to interact with other characters and elements like chips and cards.
Cashing in on crypto
Cryptocurrencies have been another popular technology adoption in the iGaming market. Many providers now accept the most widely used cryptocurrencies, such as Bitcoin, Ethereum and Tether. There are even casinos that specialise in crypto transactions.
These are a popular payment method at casinos, thanks to their lower levels of fees. Crypto is also a faster payment option, often arriving in bank accounts within a few hours. Thanks to their decentralised nature, it’s also easier to make global payments using cryptocurrencies. That makes it easier for South Africans to play at iGaming platforms around the world.
The future of legislation
It’s an understatement to say that the change to the country’s iGaming legislation has been slow-moving. At the moment, gambling in South Africa is overseen by the National Gambling Board (NGB), as it has been since 1996.
In 2004, the National Gambling Act was introduced, which took an even harsher view on gambling, banning most forms, excluding sports betting, slot machines and some casino resorts. The rules around online gambling were unclear, with seemingly only online sports betting being legal. However, these laws have not been consistently enforced, making things quite confusing.
Now, this is where things get a little complicated, because there are nine Provincial Licensing Authorities (PLAs) in the country³. These are the:
- Gauteng Gambling Board
- Eastern Cape Gambling and Betting Board
- Free State Gambling and Racing Board
- KwaZulu-Natal Gambling and Racing Board
- Limpopo Gaming Board
- Mpumalanga Gambling Board
- North-West Gambling Board
- Northern Cape Gambling Board
- Western Cape Gambling and Racing Board
While the NGB is responsible for overseeing gambling nationally, all of the provinces can manage their own laws and taxation on the industry.
What are the proposed changes?
When we said things moved slowly, we weren’t exaggerating. There were amendments to the legislation around gambling that were first proposed in 2008. They would have created a licensing system to make it easier for South African companies to run online casinos under new, stricter regulations.
While they were approved, the changes were never signed into law, leaving the industry in a state of limbo. It has also caused confusion for players, with the legal status of their favourite games remaining unclear.
What could the future be for iGaming in South Africa?
Although changes to regulations have been stalled for a while, it seems they haven’t been completely forgotten. During COVID-19, land-based providers had to close their doors in order to follow regulations. That meant more players than ever turned to online casinos in order to continue playing their favourite games. The increased popularity of iGaming platforms forced the government to re-evaluate the existing legislation.
The Remote Gambling Bill 2024
The Remote Gambling Bill B11-2024 is what emerged as a result⁴. It picked up on the proposed amendments from 2008, suggesting a new licensing system to allow for better online regulation. It would result in the creation of three different types of licence: the remote gambling operator licence, a manufacturer’s licence and an employment licence.
While licences can be awarded on a provincial basis, the NGB would have the final say.
Other changes would be stopping any credit being extended to players and requiring more responsible gambling tools. It would also seek to establish a national self-exclusion register and strictly monitor advertising. The Bill is being proposed by the Democratic Alliance, so a lot of its progress will depend on backing for the party in the next few years. However, given public support, it stands a better chance than the 2008 Bill.
The shape of iGaming in South Africa
Although South Africa is the original home of online casinos, playing a vital role in their growth, the industry in the country remains in murky waters in terms of legislation.
The Remote Gambling Bill 2024 provides a glimmer of hope for players and providers alike. It could bring the changes that we’ve been waiting for since 2008, improving licensing and regulations. Overall, while the country has a rich history in iGaming, all eyes will be on the future, looking towards how legislative changes will impact online growth.
