Gambling is a big business in South Africa, with annual revenue of around R35 billion. Over 10% of the total population regularly engages in some form of gambling. Experts at casinomobile.co.za predict that these figures will only rise in the future, with annual growth rates of around 10%.
In recent years, the online casino industry, in particular, has seen significant record-breaking growth, with revenues expected to surpass traditional land-based options soon. Gamblers in South Africa are increasingly using their smartphones to place bets, mainly through apps.
Browsers Are Slowly Losing The Battle
The trend is clear: users are shifting away from browser-based web use to apps. In 2021, approximately 90% of smartphone users prefer using apps over Chrome or Safari.
This trend is expected to continue in the coming years, with browsers serving as simple information gateways rather than interactive applications.
This preference is reflected in how customers access their favorite casinos. Apps are increasingly becoming the preferred method of wagering; mobile apps are even eroding desktop usage market share.
What is Driving The Growth of The App Market?
Casino mobile apps have seen a meteoric rise in downloads and usage statistics. However, what is the reason for such impressive growth rates?
It’s not a straightforward situation, with several factors combining to drive app downloads:
Casinos Invest in Smartphone Technology
The online gambling industry has taken notice of mobile opportunities, with several companies investing in improving smartphone app experiences. Casinos are releasing custom-built apps in addition to browser-based upgrades to differentiate themselves from their competitors.
Apps are no longer an add-on or a bonus option for casinos; instead, they are becoming the primary choice for gamblers.
Consumers should expect the best gaming experience with online casino apps when compared to their browser-based counterparts, according to a representative at Casino Mobile, experts in the iGaming industry.
Smartphone penetration apps will only grow in popularity in South Africa as smartphone ownership rates rise. Previously, African consumers were priced out of the smartphone market, particularly in the first few years after the first model was released.
However, in recent years, companies have released low-cost alternatives for low-income users. A large part of the South African market can now afford to buy a smartphone without breaking the bank.
Smartphone penetration is currently just over 60%. It is expected to reach 67% or higher by 2026. This will only result in more app downloads in the future.
Internet Subscriptions
As smartphones become more affordable, 5G connections have not only become more common, but they are also much cheaper than in the past.
While internet cafes remain popular gathering places for players to play video games and gamble online, smartphones have emerged as a viable alternative.
Many African consumers now have access to a mobile internet connection. Also, connections are frequently fast, with 5G becoming more common in South Africa. This has been revolutionary for the majority of users.
The government is also taking steps in this direction, such as promising free data to South African households. These initiatives will only improve access and internet usage across the country, driving app market growth even further.
Higher Speed = Better Games
Casinos have always kept pace with technological advancements, but businesses were still somewhat constrained by slow mobile internet speeds. It prioritised lightweight, fast-loading games.
While this route meant that games could be played on phones with slow internet connections, it also meant that the overall experience was inferior to that of the desktop.
Online casinos, on the other hand, can now provide games with impressive graphics, detailed gameplay, and live video, resulting in a more enjoyable experience.
Users now have the hard drive space to add a variety of apps to their smartphones, which means there’s always room for an online casino.
What Stage of The Market Cycle Are we in?
While the number of players using mobile casinos and their corresponding apps has reached all-time highs, this is only the beginning of the market cycle.
Players are increasingly abandoning land-based casinos and are no longer constrained by prohibitively expensive smartphones or expensive (and slow) mobile internet connections.
However, these are recent developments. The online gambling industry is still evolving, and only a few years ago, online casino games were virtually unplayable, even on the most advanced desktop configuration.
Expect apps to become the preferred option for most casino consumers over the next decade.
Players who gamble will increasingly prefer an app-based experience, similar to how we now use apps for banking, social media, exercise, and diet.