In this article, we’ll explore the key factors for success and offer practical tips for iGaming operators considering entry into the South African online gambling sector.
Key Insights
- Online casino-style games remain technically prohibited, but fixed-odds betting licences issued by provincial regulators provide a viable entry point.
- Provincial licensing, particularly in regions like the Western Cape, is essential for legal operation.
- A mobile-first strategy is vital, with over 90% of players accessing smartphone platforms.
- Preferred payment methods include EFT, vouchers, and local digital wallets; bonuses in ZAR are highly valued.
- Advertising restrictions apply; indirect acquisition channels such as affiliates and content marketing are most effective.
- Partnering with certified B2B providers helps ensure legal compliance and streamlines the licensing process.
Overview of the South African Gambling Market
South Africa’s gambling industry has grown rapidly over the past few years, driven by widespread mobile accessibility, a strong sports betting culture, and growing interest in online casino-style experiences. According to the National Gambling Board, the industry recorded a Gross Gambling Revenue (GGR) of €2.920 billion for the 2023/24 financial year, reflecting an impressive 25.7% growth from the previous year.
Online gambling is a major force behind the industry’s growth in South Africa. According to a report by Grand View Research, the online casino segment reached €128.0 million in 2024 and will grow to €226.2 million by 2030, achieving a compound annual growth rate (CAGR) of 9.8%. Sports betting remains the dominant player, contributing roughly 60% of the sector’s total revenue.
With the number of smartphone users in South Africa expected to grow by 12 million in the coming years, an increase of 86.83%, mobile-first platforms are becoming increasingly vital. As mobile data continues to become more affordable, these platforms offer seamless, fast-loading betting experiences that users increasingly demand.
While complex, the regulatory environment is steadily evolving to adapt digital gaming solutions, offering early movers the advantage of establishing brand recognition and trust. With a young, tech-savvy population and a strong appetite for sports betting and online gaming, the South African gambling landscape may offer fertile ground for sustainable commercial success.
Is Gambling Legal in South Africa in 2025?
Gambling in South Africa operates under a dual regulatory system – national legislation sets the framework, while provincial authorities are responsible for implementation and licensing. The National Gambling Act of 2004 lies at the core, defining permissible gambling activities while strictly prohibiting unlicensed interactive gambling.
Online sports betting is legal, provided the operator holds a valid provincial licence. At the same time, the legal status of online casino games and poker is less clear-cut. Technically, the National Gambling Act does not currently legalise these forms of gambling nationally. Nonetheless, certain provinces, notably the Western Cape, have adopted a more progressive stance. By interpreting existing regulations in a broader sense, they have begun issuing licences for online casino-style offerings, often classifying them under fixed-odds betting or limited payout machines. This approach provides a legally defensible route for operators to offer casino-like experiences.
It is essential to add that South Africa’s regulatory landscape constantly changes. Legislative modifications proposed in 2018, 2022, and again in 2024 have all called for the full legalisation of online casino gambling. While these changes are still under consideration, the growing momentum indicates that broader legal reform may not be far off.
How to Get a Gambling Licence in South Africa?
Operators looking to enter South Africa’s regulated online gambling market must apply for a licence through the relevant provincial licensing authority (PLA). Although the overall licensing process is similar across provinces, the gambling activities permitted, such as online sports betting or casino-style games, can differ depending on how each province interprets and applies national legislation. Generally, the licensing process includes four key stages:
- Application Submission: Operators must submit a comprehensive application to the relevant provincial authority. The application includes a detailed business plan, evidence of financial stability, ownership and management structure, and a clear outline of the proposed gambling platform. Highlighting robust B2B partnerships (e.g., with payment providers or software developers) can strengthen your case.
- Due Diligence: Provincial regulators conduct rigorous background checks on the applicant, its directors, and key personnel. Expect scrutiny of financial records, criminal history, and reputational standing, often in collaboration with law enforcement. Transparency and a clean track record are non-negotiable for B2B operators seeking trust.
- Technical Assessment: The platform must pass technical evaluations to ensure compliance with provincial standards. This includes verifying game fairness, implementing robust anti-money laundering (AML) measures, ensuring player data protection, and embedding responsible gambling tools.
- Licensing Decision: Once assessments are complete, the provincial board will issue a licence upon payment of applicable fees. The licence specifies approved activities, such as online sports betting or, in progressive provinces like the Western Cape, casino-style offerings
The application review and approval process can range from several months to over a year, depending on the province and the complexity of the application.
While national legislation still formally prohibits online casino and poker games, B2B operators may find legitimate market entry routes in provinces that provide regulated environments for these products. Localised legal expertise and provincial engagement are essential when structuring operations in South Africa’s evolving online gambling landscape.
| Province | Licence Type | Application Fee | Annual Fee | Notes |
| Western Cape | Casino | €23,965 | €11,982.50 | Application fee: €598.85; Annual fee: €120.15 |
| North West | Casino | €11,500 | €5,000 | Application fee: €300; Annual fee: €250 |
| Gauteng | Sports Betting | €50,000 – €150,000 | Varies | Costs vary depending on scale of operation |
Steps to Enter the South African Market
To launch a compliant online gambling operation in South Africa, businesses must follow a structured market-entry approach aligned with both provincial regulation and national compliance principles:
- Register a South African business entity
- Apply for a licence from a provincial gambling board (e.g., via the Western Cape Gambling and Racing Board)
- Partner with a B2B platform provider that supports:
- Legal fixed-odds betting products
- AML/KYC-compliant systems
- Localised payment solutions
While a full licence for traditional online casino gaming is not yet nationally recognised, these steps allow lawful market entry under current provincial licensing regimes. This hybrid approach provides a workable and increasingly adopted model for platform providers, software vendors, and investors seeking a presence in South Africa’s online gambling sector.
| Charge Type | Estimated Cost (EUR) | Details |
| Compliance & Monitoring Fees | €500 – €2,000 per year | Ongoing oversight, system audits, or monitoring tools required by gambling boards. |
| Gambling Employee Licences | €5 – €25 per person | Required for all staff involved in betting operations. |
| Software Certification | €3,000 – €10,000+ | One-time cost depending on complexity; GLI or similar labs test the platform. |
| Technical Monitoring Tools | €1,000 – €5,000 setup | Integration with regulatory platforms (e.g., central monitoring systems). |
| Gross Gaming Revenue (GGR) Tax | 5% – 15% of GGR | Paid monthly or quarterly; rate depends on the province and business type. |
| Legal & Compliance Consulting | €1,000 – €5,000+ annually | Ongoing legal assistance to remain compliant with marketing, advertising, and operations. |
| Advertising Permits or Reviews | €250 – €1,000 | If allowed, some provinces may charge for advertising reviews or permissions. |
| Security & Data Compliance | €1,000 – €3,000 annually | Firewalls, local hosting, ISO/IEC 27001 readiness, and data backup systems. |
| Audit & Financial Reporting | €1,500 – €5,000 per year | Third-party financial audits may be required to maintain compliance. |
| Bank Guarantees | €10,000 – €50,000 (held, not spent) | Some provinces require financial guarantees to cover liabilities or player balances. |
Understanding Local Players: Behaviour & Preferences
Understanding local player preferences and behavioural trends is essential for any operator entering the South African iGaming space. In 2025, South African players are highly mobile-driven, and this behaviour is reinforced by improving internet coverage and more affordable data plans, particularly in urban and peri-urban areas.
Top 5 Player Insights:
- Mobile-first: Over 90% use smartphones to access platforms
- Preferred game types: Sports betting, crash games, number draws, instant wins
- Peak engagement times: Evenings and load-shedding periods
- Cultural relevance: Players favour promotions around national holidays (e.g., Heritage Day, Freedom Day), and respond to bonuses in ZAR
- Payment behaviour: EFT, vouchers, and bank wallet solutions remain top choices
Culturally, players tend to favour brands that localise content, use familiar payment methods, and offer responsive support in their local language. Trust and transparency are crucial – players gravitate toward licensed operators who display terms, comply with local laws, and offer secure, verifiable platforms.
Effective Marketing Strategies for South African Online Casinos
Given the specific national policies limiting online gambling advertising, traditional channels like direct advertising and Google Ads are unfortunately not viable options for marketing an online casino in South Africa. This means iGaming operators must think creatively when acquiring local players.
Practical Alternatives to Paid Ads in South Africa:
- Affiliate programs: Partner with trusted review and comparison sites through an affiliate management software platform
- Local PR & thought leadership: Place articles in South African business or gaming publications
- Community sponsorships: Collaborate with iGaming communities, industry events, or digital initiatives
- Content marketing: Publish guides, market data, and legal insights
- Influencer outreach: Partner with figures from tech, gaming, or finance, within compliant messaging frameworks
Focusing on responsible gambling practices can also foster player trust and loyalty – an investment that pays dividends in establishing your platform’s reputation. Showing a commitment to player safety lets you distinguish your platform in South Africa’s highly competitive market.
Choosing the Right iGaming Software Provider for South Africa
Building a successful online casino in South Africa’s thriving market hinges on getting the technical foundation right. Partnering with a reliable service provider minimises operational headaches, freeing you to focus on marketing and player engagement. Here is what B2B operators need to prioritise when choosing a technical partner:
- Software: Opt for a safe, secure, stable platform under high loads. It’s always best to choose certified casino software developed by a reputable company with several years of market experience. In South Africa, certification by an accredited lab like GLI is often needed for licensing. The software should also support multiple languages and payment options. Familiarise yourself with the admin panel to ensure it meets your needs for bonus settings, player management, payment processing, etc.
- Games: Find out how many games are included in the package. Some providers offer game aggregation software with a diverse selection from various game studios, giving you many choices in one place.
- Legal Support and Financial Infrastructure: Navigating the complexities of obtaining a gaming licence is a significant step for casino operators, and for those ready to undertake this task, a standalone turnkey casino solution can offer substantial benefits. Often also providing robust financial infrastructure and operational control, it empowers you to run and manage your online casino with a high degree of customisation and autonomy.
With thorough research, the right software in place, and a solid marketing strategy, you’ll be well-prepared to launch your online casino and compete in the South African iGaming market.
B2B Licensing: What Operators Need to Know
Collaborating with a trusted B2B provider is crucial for navigating South Africa’s regulatory landscape and fast-tracking your online casino’s launch:
- Vendor licensing: Confirm that your B2B partner is certified or approved by a recognised regulatory authority.
- Compliance risk: Engaging with an unlicensed or unregistered provider may result in regulatory delays, fines, or even denial of your licence application.
- Due diligence:
- Request proof of technical certifications (e.g. GLI, BMM, ISO).
- Review the provider’s compliance history in other regulated markets.
- Verify whether the provider is acknowledged or accepted by South African provincial regulators.
Thorough due diligence minimises compliance risks and is critical in expediting the licensing process with local authorities.
Planning Your Next Steps in South African iGaming
To secure a successful foothold as an iGaming business in South Africa, operators must stay updated with the legal requirements and evolving player preferences. For an in-depth exploration of this opportunity-rich emerging market, including South Africa casino market trends and strategic guidance, check out our extensive SOFTSWISS market report, iGaming in South Africa, now available for download.
