South Africa’s online gambling market is emerging as a significant African iGaming player, with its value estimated at $3.89 billion (about R63 billion) in 2026, according to the latest Softswiss iGaming Trends report.
The 2027 iGaming Trends report from Softswiss is co-authored with WorldGaming and is based on a survey of over 500 experts, and analysis of more than 480 000 media headlines.
The study places SA among the African markets which warrant close attention, as operators navigate changing regulation, taxation and player behaviour. About 84% of gross gambling revenue (GGR) is generated onshore, highlighting the extent to which the local market is being served within the country.
The report's assessment comes as SA’s gambling sector continues its shift towards online betting, with mobile devices playing a central role in how consumers access services.
The latest market valuation, however, comes against a regulatory environment in which operators face both provincial and potential national taxation.
For SA, the report highlights the importance of understanding the country's licensing and tax structure, rather than treating the market as a uniform extension of international operations.
Alexandra Kavelich, deputy CMO at Softswiss, says the competitive environment is increasingly being shaped by factors extending beyond gambling content itself.
“The next competitive advantage in iGaming will not come from content alone. It will come from regulatory readiness, secure payment journeys, intelligent risk management, relevant customer communication and platforms that can respond quickly to changing regulations.
“Fintech, e-commerce and streaming have already set the standard in these areas. iGaming operators that adapt those lessons effectively will be better positioned to grow responsibly and profitably,” notes Kavelich.
South African online betting operators are currently subject to provincial gambling taxes, with rates varying according to jurisdiction and gambling activity.
National Treasury has also been pursuing an additional national levy. Its 2025 discussion paper proposed a 20% tax on gross gambling revenue from online betting and interactive gambling, on top of existing provincial taxes. Treasury said this could result in a combined effective tax burden of between 26% and 29%, depending on the applicable provincial rate.
The proposal remains under development in 2026. The 2026 Budget Review said Treasury would consider public submissions before including a revised proposal in draft legislation for further public comment later in the year.
The report therefore places the size of the online market alongside a policy environment that could materially affect operators' economics and future expansion.
The commercial expansion of online gambling is coinciding with a focus on consumer safeguards.
Softswiss recently published preliminary findings from a survey of 1 000 South African adults examining attitudes towards player protection. Among unemployed respondents, 35.3% expressed demand for spending-limit tools, compared with 43.2% across respondents overall.
The survey also found that 22.1% of unemployed respondents said they would use a financial windfall to pay off debt, making debt repayment the most frequently identified use of such money among that group.
“These findings add a consumer-protection dimension to the market's growth, particularly as more gambling activity moves into digital channels.”
The South African Reserve Bank Financial Stability Review from June 2026 says the total annual value gambled by South Africans reached approximately R1.50 trillion in 2025, up 31.3% year-on-year, while GGR reached R74.5 billion, up 25.6%. It says online betting accounted for about 85% of GGR in 2024/25.
Grand View Research estimates SA’s online gambling market generated $1.54 billion in 2025, with revenue projected to reach $1.66 billion (R27.15 billion) in 2026 and $2.77 billion (R45.3 billion) by 2033, representing a projected 7.6% CAGR from 2026 to 2033. It identifies sports betting as the largest revenue-generating segment in 2025, with a 54.64% share.
Local rules shape competition
The Softswiss report argues that international scale does not remove the need for operators to understand individual markets.
Robin Harrison, global content director B2B at WorldGaming, says market-specific conditions are becoming increasingly important as the industry expands across jurisdictions.
“The industry is simultaneously becoming more global and more local. Regulation, tax, payments, competition and player behaviour vary significantly from market to market. Scale can get you into more jurisdictions, but it definitely doesn't guarantee success. The next generation of leading operators is the one that understands where the local friction is, how to ease it and execute effectively.”
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