South Africa Leads Africa’s Online Gambling Market in 2025

South Africa Leads Africa’s Online Gambling Market – Fragmented Regulation and Tax Pressure Shape Expansion Across the Continent

Key Takeaways

• South Africa recorded $5.2 billion in gross win in 2025, with $3.26 billion generated online.
• Nigeria ranked second with nearly $1.6 billion in gross win in 2025.
• Online gambling accounted for 63% of South Africa’s total gross win in 2025.
• Industry representatives warn that rising player taxes and regulatory fragmentation are driving consumers to offshore operators.
• Regulatory tensions in Nigeria have shifted authority toward state-level oversight following a 2024 Supreme Court ruling.

South Africa Emerges as Africa’s Largest Online Gambling Market

South Africa is currently the largest gambling market on the African continent by revenue. According to H2 Gambling Capital figures cited in the source material, the country’s total gross win in 2025 exceeded $5.2 billion. Of that amount, $3.26 billion came from online gambling, representing 63% of the total.

This makes South Africa the 22nd largest gambling market globally by revenue, positioned just behind Romania, which reported $5.56 billion in gross win in 2025. Projections indicate further expansion, with estimates that the online segment could approach $5.9 billion by 2030.

The country’s position has attracted both long-standing operators and new entrants. Super Group’s Betway Africa, active on the continent since 2006, and HollywoodBets are currently competing for the largest share of the online market. Betway Africa reported $267 million in revenue for the first quarter, a 33% increase year-on-year. Football accounts for 94% of Betway’s revenue in Africa, reflecting the dominance of the sport in betting activity.

Virgin Bet, operated by LiveScore Group, entered South Africa in March as its first market outside the United Kingdom. The company cited brand recognition and an established regulatory framework as key reasons for selecting the country. LiveScore Group already had operational experience in Nigeria prior to the launch.

Regulatory Structure in South Africa Creates Both Oversight and Complexity

South Africa’s gambling framework is based on the National Gambling Act of 2004. While national legislation sets the overarching rules, licensing and enforcement are handled by nine provincial regulators. Each province applies its own regulatory processes within the national framework.

Industry representatives describe this fragmentation as a factor that can complicate operations. However, the National Gambling Board emphasizes that provincial legislation must align with national law and that oversight ensures consistency. The national body and provincial authorities engage regularly to coordinate implementation.

Compared with other African markets, South Africa’s established legal framework is often referenced as a model. For operators, the structure provides regulatory clarity, but it also requires compliance across multiple provincial jurisdictions.

Nigeria Ranks Second but Faces Ongoing Regulatory Tensions

Nigeria recorded close to $1.6 billion in gross win in 2025, making it Africa’s second-largest gambling market by revenue. Growth is supported by demographics, with more than one million young people reaching the legal gambling age of 18 each year.

However, Nigeria’s regulatory environment has been marked by conflict between federal and state authorities. In 2024, the Supreme Court ruled that the National Lottery Act had become void, affirming that state regulators have the right to regulate lottery and games of chance independently of the federal government.

In December of the same year, President Bola Ahmed Tinubu rejected the proposed Central Gaming Bill, which sought to centralize gambling oversight under a national commission. As a result, regulatory authority remains decentralized, reinforcing the role of state-level oversight.

Super Group has identified Nigeria as a strategic focus market, although Betway does not currently hold a top-three market share position there. Company leadership has stated that product localization is central to its approach. One operational difference compared with other markets is the presence of street kiosks and retail betting shops, which play a role in Nigeria’s betting ecosystem.

Tax Policy and Overregulation Raise Concerns About Offshore Migration

Beyond licensing structures, industry representatives highlight taxation as a significant challenge across multiple African markets. According to the African iGaming Alliance, established in 2025 to promote cooperation between regulators and operators, increasing withholding taxes on players are contributing to growth in the black market.

Industry executives argue that taxes imposed directly on customers are difficult to enforce against offshore operators. As a result, licensed operators may face competitive disadvantages if tax burdens make regulated offerings less attractive to consumers.

The African iGaming Alliance also points to uneven enforcement tools across jurisdictions. For example, some regulators can block illegal operators, while others lack comparable mechanisms. This uneven regulatory capacity may allow offshore operators to remain accessible in certain markets.

Localisation and Brand Strategy Shape Market Entry

Operators expanding into Africa emphasize the importance of adapting products to local market conditions. Virgin Bet has stated that its South African launch required adjustments rather than replicating its United Kingdom model. LiveScore Group drew on previous experience in Nigeria to inform its localization approach.

Super Group attributes part of its competitive position in South Africa to long-term brand exposure linked to football sponsorships. The company has used international partnerships to reinforce brand visibility in African markets where English Premier League football has a strong audience.

For new entrants and established operators alike, market entry strategies combine regulatory compliance, localized product development, and brand positioning within a highly competitive environment.

Our Assessment

South Africa and Nigeria account for the largest shares of Africa’s regulated online gambling revenue, with South Africa clearly leading in both total and online gross win. At the same time, fragmented regulation, decentralized oversight, and rising player taxes are shaping competitive dynamics across the continent. Operators expanding in Africa must navigate provincial or state-level licensing systems, varied enforcement capabilities, and evolving legislative frameworks that directly affect market access and consumer behavior.