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iGaming and Sports Betting Outlook

iGaming and Sports Betting Outlook: A Strategic View of the Sector’s Evolution in South Africa, the United Kingdom, and the United States

Written By: Darren Lunz
Date: 12 May 2025

Introduction: iGaming and Sports Betting Outlook for 2025

The iGaming and sports betting outlook for 2025 is defined by accelerating digital adoption, evolving regulation, and strategic growth across key markets. The sector — particularly sports betting and digital casino gaming — is projected to surpass $153 billion by 2030 (Grand View Research, 2024), with momentum driven by platform expansion, legislative reform, and shifting consumer behaviour.

However, operators face increasing complexity, including heightened compliance costs, regulatory fragmentation, and evolving investor expectations. This article explores the iGaming and sports betting outlook in South Africa, the United Kingdom, and the United States, outlining the key strategic priorities operators should focus on to stay competitive and profitable.

South Africa: Digital Betting in a Fragmented Framework

Where We Are Now: South Africa’s iGaming and Sports Betting Outlook
South Africa currently permits online sports betting, but online casino gaming remains prohibited under national legislation. The regulatory environment is fragmented across provinces, leading to different licensing requirements, tax rates, and reporting obligations.

Key licensing bodies include:

  • Western Cape Gambling and Racing Board

  • Gauteng Gambling Board

  • Mpumalanga Economic Regulator

Operators must obtain separate licences for each province and meet specific compliance standards. Growth in the sector has been concentrated in provinces with digital-friendly regulations.
(Source: Respective Provincial Gambling Boards, 2024)

Where It’s Going: The Future of iGaming and Sports Betting in South Africa

  • No centralisation of regulation is expected in the short term.

  • Online casino gaming regulation remains stalled, though demand is growing, particularly in urbanised, mobile-first markets.

  • Operators will need to build province-specific strategies, taking into account tax impact, market potential, and operational costs.

The iGaming and sports betting outlook in South Africa will favour well-capitalised, agile operators who can navigate the fragmented regulatory environment and adapt to political and legal changes.

United Kingdom: Regulation-Centric and Margin-Sensitive iGaming and Sports Betting Outlook

Where We Are Now: The UK’s Highly Regulated Gambling Market
The UK remains one of the most regulated and saturated online gambling markets globally. In 2023, 60% of total gambling revenue came from online platforms, with £8.5 billion in gross gambling yield (UK Gambling Commission, March 2023).

The 2023 Gambling White Paper introduced key reforms, including affordability checks, stricter marketing controls, and increased oversight of B2B partnerships (e.g., white labels).

Where It’s Going: Strategic Insights for the UK’s iGaming and Sports Betting Outlook

  • Compliance costs will rise due to new player protection measures.

  • The online casino vertical remains the most profitable, but the challenge is cross-selling from sportsbook given stricter marketing rules.

  • Growth will increasingly come from product innovation, improved customer retention, and niche market positioning.

In the UK, the iGaming and sports betting outlook demands a focus on margin protection, player segmentation, and data-driven decision-making to maintain competitiveness in the mature market.

United States: A Regulatory Patchwork with Billion-Dollar Potential for iGaming and Sports Betting

Where We Are Now: The Complex U.S. iGaming and Sports Betting Outlook
The U.S. has the most fragmented online gambling landscape, with over 30 states legalising sports betting and only 7 states allowing iGaming. The taxation rates vary dramatically, from 6.75% in Nevada to 51% in New York, creating complexities for operators.

The sector generated over $60 billion in revenue in 2023, but profitability remains elusive for most, particularly in sports betting due to high customer acquisition costs and taxes.
(Source: American Gaming Association, 2024)

Where It’s Going: Navigating the U.S. iGaming and Sports Betting Outlook

  • iGaming will be the long-term profit driver, but its expansion is slow and politically sensitive.

  • Sportsbook growth is flattening, and operators must focus on cross-selling casino products to maintain growth.

  • Multi-state operators will need scalable financial strategies to manage tax complexities and stay profitable.

The iGaming and sports betting outlook in the U.S. presents opportunities for large-scale operators who can optimise financial operations and use state-specific data to navigate a challenging regulatory environment.

Strategic Considerations for Operators in iGaming and Sports Betting

Across South Africa, the UK, and the U.S., several key trends are shaping the iGaming and sports betting outlook:

  • Sportsbook is highly popular but difficult to monetise.

  • iGaming offers higher profitability, but regulatory adoption is slower.

  • Compliance and regulatory frameworks are tightening, especially around AML, marketing, and affordability.

  • Financial agility and data-driven decision-making are essential for managing costs and maintaining profitability.

Operators must focus on scalable strategies, financial planning, and jurisdiction-specific insights to navigate the evolving landscape of iGaming and sports betting.

How Malander Advisory Supports the Sector

At Malander Advisory, we partner with online gambling operators to provide:

Fractional CFO Services
Strategic leadership for licensing, board planning, structuring, and capital engagement.

FP&A and Financial Modelling
Scenario planning, cash flow forecasting, cross-sell viability, and market-entry models.

Licensing Support
Business cases and financial projections to support licence applications across jurisdictions.

Strategic Decision Support
Multi-jurisdictional tax analysis, product profitability modelling, and investment-grade reporting.

📚 Sources Referenced

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