The future of brick-and-mortar casinos, issue of one of SBC Digital Africa talks

Home to 41 licenced casinos and with the National Gambling Board recently reiterating that online casino gaming is illegal, how are brick-and-mortar casinos faring? Is the South African casino gaming sector being left behind by its refusal to embrace online?

In this article we will present some highlights from speakers: Garron Whitesman, Founding Partner Whitesman Lurie, Alessandro Fried Founder BtoBet, Adhika Singh, Chief Operating Officer GRIPP Advisory, Martin Sack, Director Brainstorm Online (Pty) Ltd, Nitesh Matai, General Manager Sunbet, moderated by Roy Bannister, Co-Founder and Executive Director, Gaming for Africa.

First of all, the moderator welcomed speakers and commented that a regional explosion of sportsbetting has taken place in recent years, particulary in Nigeria, Kenya and South Africa.

He asked Whitesman to talk about the current status of online gambling in South Africa and why did the National Gambling Board had to clarify that the activity is illegal in the country.

Whitesman highlighted the sustancial growth of online gambling during the pandemic, not only in South Africa but all over the world. The NGB was concerned on the matter and confirmed the illegality due to the fact that online casinos from abroad started operating there and many players participated in offshore online gambling over the period. "Although, what is legal is placing fixed-odd betting with the outcome of contingence which is offered by licenced bookmakers." He thinks that the authority should legalize online gambling and that it would bring in more revenue and more jobs to the country. I think the government is not thinking of legalizing the activity, although land-based casinos have seen the importance of being online during the pandemic. They view it as a commercial opportunity and are pushing for it to happen."

Besides, Adhika Singh pointed that online gambling is gaining popularity, and she is also in favor of the legalization of the activity.

Martin Sack added: "If you look at the major players of land-based casinos in South Africa, it is perfectly clear that there is a desire of having an online presence. I don't think any of the land-based firms are against online gambling."

Matai talked on behalf of Sunbet. He said the firm wants to go online, but within a framework that is properly legislated and managed.

Alessandro Fried said that he saw that the pandemic period pushed Africa and also Latam to the online operation. "Everywhere we saw a massive growth of online, and not online in this industry but in all industries. IF we look at online casinos in Africa, casino operation represented 20% volumes and now is more than a half. South Africa would be a perfect environment for casino online, if it was regulated". He foresees that online gambling will remain after the pandemic.

All the speakers were in favor of the legalization of online gambling, but discussed interesting and different points of view regarding a possible legalization, the possible number of licenses, the sustainability of traditional casino companies, the competition with online and cannibalization, among other issues.