Market Insights Digital eServices Online Gambling

Online Lottery - South Africa

South Africa

Revenue in the Online Lottery market is projected to reach €102.20m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.13%, resulting in a projected market volume of €134.60m by 2028.
In the Online Lottery market, the number of users is expected to amount to 0.7m users by 2028.
User penetration will be 0.8% in 2024 and is expected to hit 1.0% by 2028.
The average revenue per user (ARPU) is expected to amount to €196.90.
In global comparison, most revenue will be generated in the United States (€5,270.00m in 2024).
With a projected rate of 6.5%, the user penetration in the Online Lottery market is highest in South Korea.

Key regions: Asia, Japan, South Korea, United States, Europe

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Analyst Opinion

The Online Lottery market in South Africa has witnessed significant growth in recent years, driven by changing customer preferences, market trends, and local special circumstances.

Customer preferences: In South Africa, there has been a shift in customer preferences towards online lottery platforms due to their convenience and accessibility. With the increasing penetration of smartphones and internet connectivity, more people are opting to play the lottery online rather than visiting physical outlets. Online platforms offer a wide variety of lottery games, attractive promotions, and the convenience of playing from anywhere at any time.

Trends in the market: One of the key trends in the South African online lottery market is the growing popularity of mobile lottery apps. Mobile apps provide a seamless and user-friendly experience, allowing players to easily purchase tickets, check results, and receive notifications. This trend is driven by the increasing smartphone penetration in the country and the preference for on-the-go gaming. Another trend in the market is the introduction of innovative lottery games and features. Online lottery operators are constantly looking for ways to attract and engage customers by offering unique game formats, such as instant win games and scratch cards. These games provide instant gratification and appeal to a broader audience.

Local special circumstances: South Africa has a well-established lottery market, with the National Lottery being one of the most popular forms of gambling in the country. The online lottery market has benefited from this existing popularity and brand recognition. The National Lottery operator has also embraced the digital transformation by launching an online platform, further boosting the growth of the online lottery market. Additionally, South Africa has a large population of young and tech-savvy individuals who are more inclined towards online gaming and entertainment. This demographic shift towards digital platforms has contributed to the growth of the online lottery market in the country.

Underlying macroeconomic factors: The growth of the online lottery market in South Africa is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income. As people have more disposable income, they are more likely to spend on leisure activities, including online lottery games. Furthermore, the COVID-19 pandemic has accelerated the adoption of online lottery platforms in South Africa. With lockdowns and social distancing measures in place, physical lottery outlets were temporarily closed, leading to a surge in online lottery ticket sales. This trend is expected to continue even after the pandemic, as people have become accustomed to the convenience and safety of online gaming. In conclusion, the Online Lottery market in South Africa has experienced significant growth due to changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The shift towards online platforms, the popularity of mobile lottery apps, and the introduction of innovative games have all contributed to the growth of the market. Additionally, the existing popularity of the National Lottery and the demographic shift towards digital platforms have further fueled the growth. The underlying macroeconomic factors, such as economic growth and the impact of the COVID-19 pandemic, have also played a role in boosting the online lottery market in South Africa.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Gambling Revenue (GGR) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies, and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, the urban population, the usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.