Online casinos and cryptocurrency: The emerging trend in South Africa

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There has been a significant rise in popularity of online gambling over the past few years in South Africa, and this has only further been enhanced with the integration of cryptocurrencies. With a world that is constantly moving towards digitalization, the integration of online casinos and digital currencies is reshaping the landscape of South Africa’ gambling industry. 

An overview of online gambling in South Africa

It is safe to say that the gambling industry of South Africa has witnessed exponential growth in recent years, especially as more players opts for online casinos due to their convenience. In South Africa, online gambling is becoming the dominant force in the country’s gambling sector, especially since internet access has become cheaper and more easily accessible, and the use of smartphones has become more widespread. 

The appeal of online gambling is tied to the accessibility of this activity. Where brick-and-mortar required players to show up at a specific location, online platforms are a flexible way for players to gamble from home or on the go, and the variety of games one can access has wider options than traditional casinos. Take for example Jackpot City South Africa which is platform which offers a variety of games within categories such as slot games, crash games, live games, quick games, bet games, and the popular Aviator game.

Cryptocurrency as a game changer in the gambling scene

A big shift in the online casino world that has taken place in the past few years has been the integration of cryptocurrencies into online casino platforms. This means players now can wager and get paid out in cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and more. There are various advantages with leveraging cryptocurrencies for online casinos, both for players and the operators. For players, cryptocurrencies provide enhanced privacy and anonymity. By leveraging decentralized networks, transactions are not regulated or monitored by any third-party entity, which is ideal for players who prefer a high level of privacy around their gambling activities. 

Compared to traditional payment methods, cryptocurrencies offer lower transaction fees, which is beneficial for high-stakes players who move large sums of money. Since intermediaries are cut out, transactions are faster and cheaper. According to a report by Business Tech, South Africa is the 5th country in the ranking of countries with the most crypto owners by country. South Africa has 7.7 million crypto owners, which represents 12.45% of the population. This reflects how South Africa is one of the leading African countries when it comes to adopting cryptocurrency. Many South Africans opts to use their digital wallets for various online transactions, which also includes online casinos. 

Legal status of online gambling and cryptocurrency in South Africa

For both online gambling and cryptocurrency, the legal framework is complex. Online gambling is operating in a grey area due to the National Gambling Act of 2004. The act stipulates that South Africans can participate in online gambling if the provider is licensed by a relevant provincial gambling authority. At present, most South Africans chose to play at online casinos based offshore. 

Cryptocurrency is also somewhat unregulated in South Africa. Since the inception of cryptocurrencies into the financial market in 2009, the South African Reserve Bank has taken a cautious approach toward cryptocurrencies. This means that at present it has neither fully endorsed nor outlawed their use. There has been expressed interest in creating a central bank digital currency, but no concrete regulations for decentralized cryptocurrencies have been established. 

These lacks regulation can both create opportunities and challenges for players and online casino operators. Without a solid legal framework, there is little player protection during fraud or disputes. Furthermore, with no regulation of the use of cryptocurrency in gambling, the door has been opened for potential money laundering activities. 

The future for online casinos and cryptocurrency in South Africa

It is expected that the integration of digital currencies will increase the appeal of online gambling platforms, especially among younger and more tech-savvy players. This is combined with the projection that the global online gambling market is expected to grow. For 2024, the revenue in the global online gambling market is projected to reach USD 97.15 billion, with an expected annual growth rate (CAGR 2024-2029) of 6.4%, which would make the projected market volume reach USD 132.90 billion by 2029. South Africa is expected to contribute a lot to this growth as the gambling culture in the country continues to grow.

What will drive this continuous popularity of the online gambling industry is the ease of transactions, privacy and the fair systems provided by integrating cryptocurrency into the world of online casinos. Furthermore, the South African government and financial institutions has acknowledged the need for more regulations for cryptocurrency use, including in sectors like online gambling. 

Concluding remarks

South Africa is still attempting to embrace both online casinos and cryptocurrency, with the intersection of the two providing a promising but challenging frontier. As cryptocurrency adoption continues to grow among South Africans, and as online casinos continue to increase in popularity, the trend of integrating these two elements will most likely continue to evolve in South Africa. 

Featured image via Unsplash.