Online Casino in South Africa

How to Start an Online Casino in South Africa

Conducting thorough study and meticulous planning is necessary when launching an online casino designed to specifically cater to South African gamers. Does the market provide substantial growth opportunities? What is the gambling industry’s present legal environment? Which regional practices and tastes must to be taken into account in order to attract South African gamers to your online casino? All of these are important issues that require attention.

This post will examine the essential elements for success and provide seasoned iGaming operators with helpful advice on how to enter the South African online gambling market.

In South Africa, gambling has always been restricted, and it was outright forbidden from 1965 to 1994. Land-based casinos were first made lawful in 1996 following a change in administration and the enactment of the National Gambling Act in that same year.

Even though most classic online casino games are illegal in South Africa, the legality of online casino gambling is still complicated, but astute operators have come up with creative ways to abide by the laws that are now in place regarding sports betting.

This has been accomplished by providing “numbers-style draw games,” which are emulations of traditional casino games like roulette, slots, and, most recently, crash games. These games, which can only be found on authorized iGaming platforms, are more like “betting events,” which helps to make them compliant with the laws that now govern sports betting in South Africa.

However, given that three legislation from 2018 to 2024 are aimed at creating a specific regulatory framework for internet gaming in South Africa, this legal environment may change.

How to Start an Online Casino in South Africa

Overview of the South African Gambling Market

Since the National Gambling Act of 1996 opened the door for legal, licensed casinos throughout the nation as well as a single, national lottery, the gambling industry in South Africa has advanced remarkably. The National Gambling Board (NGB) released statistics for the fiscal year 2022/2023 that show the whole gambling business in South Africa brought in an amazing EUR 2.3 billion in Gross Gambling Revenue (GGR), up an astounding 36.9% over the previous year.

This total also includes the extraordinary expansion that the internet gambling industry has experienced in South Africa, especially in the wake of the COVID-19 outbreak. According to recent forecasts, the online gambling market in the country is anticipated to develop at a compound annual growth rate (CAGR) of 6.18% between 2024 and 2028, with a predicted market volume of approximately EUR 64 million by the end of that year.

The increasing price of mobile data plans and the widespread usage of smartphones are fueling the surge in online gambling by enabling more South Africans to access iGaming platforms with ease. The country of South Africa’s recurrent power outages, sometimes known as “load-shedding,” are another little-known element contributing to this growing trend. This practice has unintentionally increased awareness of online casinos as a substitute for traditional forms of entertainment during the regular blackouts that occur there.

Licensing an Online Casino in South Africa

Navigating the various gambling laws and license requirements throughout the nine provinces of South Africa is a major obstacle for operators hoping to open an online casino in the nation. Despite being under the NGB’s supervision, every region has its own autonomous licensing body, therefore operators must be fully aware of the specifics and regulations of each province.

The glacial development of “harmonisation,” or the creation of uniform licenses for South African online casinos, highlights how crucial regulatory flexibility is for operators hoping to break into the industry.

Online Casino in South Africa

It’s also critical to draw attention to the large number of casinos that accept local players and are based overseas and have gaming licenses from other jurisdictions. Although internet gambling regulations in South Africa legally forbid this behavior, there have been few cases of prosecution or active banning of online gaming sites that accept players from the country.

It would be foolish for new operators to enter the South African market without first obtaining a license from a respected jurisdiction, like Malta or Curaçao. Well-educated, many local South African players who are open to using offshore iGaming platforms look for licensed platforms as a sign of legitimacy and security, knowing that their money is safe and the games are approved by relevant authorities.

Preferred Payment Methods for South African Casinos

Most South African players prefer to fund their accounts with credit or debit cards when they sign up for online casinos. But a sizable portion also choose to use prepaid cards like EcoCard or other payment options like Neteller and Skrill e-wallets. It is imperative for iGaming operators to provide a wide array of payment alternatives in order to cater to the varied interests of all player groups.

It’s also critical to support the South African Rand (ZAR) as a currency. Many players choose to forego the complications of currency conversion by prioritizing the ease of trading in their native currency. Operators may ensure that players have a clear grasp of their financial activities by offering a transparent and reassuring user experience by allowing players to examine their balances and winnings in ZAR.

Using Cryptocurrencies in South African Casinos

In addition to traditional payment options, operators would be wise to think about accepting cryptocurrencies such as Bitcoin from players who wish to play and pay online. They are becoming an increasingly popular choice for safe and effective digital transaction methods among South African online gamblers, making them an invaluable addition to any operator’s payment toolkit.

Language Options for Online Casinos in South Africa

With eleven official languages, South Africa is a nation rich in cultural diversity. Even if English is a common language in the nation and is generally understood, adding more languages to your online casino can greatly improve the player experience.

The addition of Afrikaans, which is the mother tongue of many South Africans, to your iGaming platform is very advantageous. Adding more than one language to your website can improve accessibility and demonstrate respect for the local way of life, which in turn can draw in more South African gamers.

Online casino in South Africa

Casino Game Preferences in South Africa

For operators operating in the South African market, curating a compelling game library is essential. Even if classic favorites like poker, blackjack, and slots continue to be popular among some groups of people, a discernible change is presently taking place.

Aviator, a Spribe game, is one of the several “crash games” that have become quite popular in South Africa. These games are fast-paced, uncomplicated, and provide rapid pleasure through simple principles. Simultaneously, the attraction of progressive jackpot games persists, offering a thrilling experience to individuals seeking greater prizes.

A game aggregator can make it easier for operators with hectic schedules to integrate a vast variety of gaming content from several vendors at once. This ensures a diverse, engaging game collection right away and helps save time.

Efficient Promotional Techniques for Online Casinos in South Africa

Regrettably, standard marketing avenues for online casinos in South Africa, such as Google Ads and direct advertising, are not feasible due to particular national rules that prohibit advertising related to online gambling. This implies that in order to attract local players, iGaming providers must think creatively.

For operators, investigating affiliate relationships and utilizing the evaluations of reliable online gaming sites might be useful substitutes. By using these techniques, operators can connect with potential players without breaking South African laws governing online gambling.

A major emphasis on responsible gaming can also promote player loyalty and trust, which is an investment that will pay off in building your platform’s reputation. South African players place a high value on trust, and in this fiercely competitive market, demonstrating your platform’s dedication to player safety will set it apart.

Choosing the Right iGaming Software Provider for South Africa

Technical issues must be resolved in order to successfully launch an online casino that aims to serve the South African market, or any other market. Selecting the appropriate service provider is essential to avert needless issues and freeing up your time to concentrate more on marketing and promotion. The following are important factors to think about while selecting your technical partner:

  1. Software: Select a platform that operates reliably, safely, and steadily even under heavy loads. Selecting authorized casino software created by a respectable business with years of industry experience is usually the best option. Additionally, if at all feasible, the program should handle a variety of languages and payment methods, including Bitcoin. Get acquainted with the admin panel to make sure it satisfies your requirements regarding player administration, bonus settings, payment processing, etc.
  2. Games: Ascertain the number of games that come with the bundle. Some companies sell software for aggregating games, which gives you access to a wide variety of options from multiple game studios in one location.
  3. Legal Support and Financial Infrastructure: For casino operators, navigating the complexities of acquiring a gaming licence is a significant step. A standalone turnkey casino solution can offer significant benefits to those who are prepared to undertake this work. It gives you a great deal of flexibility and autonomy in how you run and manage your online casino by frequently offering a strong financial infrastructure and operational management.

When you launch your online casino and compete in the South African iGaming market, you’ll be well-prepared with the correct software in place, a strong marketing plan, and extensive research.

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