Evaluating the sustainability of South Africa’s gambling industry

Abstract

South Africa is a developing country that prides itself on having in-depth understanding of gambling activities. People engage in gambling activities like casino games and lotteries. Even though gambling activities have evolved from being a relatively unusual occurrence limited to brick-and-mortar casinos, bingo halls, race and sports books, it has become a technologically sophisticated sector that is growing significantly every year. The gambling activities have transforms how individuals gamble. People gamble in the comfort of their own homes. However, the growing importance of unregulated (and thus illegal) gambling in South Africa is a troubling trend. This study aimed at investigating the opportunities for the South African gambling sector to continue operating in the face of declining revenues. To establish the set objectives, this study adopted the use of qualitative methods particularly purposive sampling. The researcher acquired a representative sample of the three CEOs and 12 players from each of the three companies, Gold Circle, HollywoodBets, and Phumelela Gaming. In a similar vein, the 12 clients chosen from the three businesses have a history of doing business with them. The findings of the study revealed that both internal and external elements contributed to the industry's swift drop in fortunes. The internal variables include marketing, culture, issues with tax income, racing, wagering, and the use of human capital. Education, innovation, globalisation, a lack of skilled workers, economic and political instability, legal issues, restrictions on gambling, change, and government backing are some of the external variables. The study recommended significant government assistance for the industry. The national gambling board should also see to the closure of all illegal gambling establishments. The sudden increase in licence renewal costs and tax revenue needs to be investigated, to help the business regain its financial stability.