[image:supplied]

Gambling is a popular form of entertainment and a significant industry in many countries, including the United States and South Africa. While both countries have a long history of gambling, their regulations and industries differ significantly.

Here, we will compare and contrast the gambling industries in the United States and South Africa, highlighting the key differences and similarities between the two. We will also explore the lessons that South Africa could learn from the United States to make its gambling industry more diverse and accessible.

The United States has a well-established and diverse gambling industry, with various forms of gambling available, including casino games, sports betting, online gambling, and horse racing. In contrast, South Africa’s gambling industry is more limited, with only sports betting being legal and only one online casino operator, Betway, accepting casino players.

Despite these differences, there are also similarities between the two countries’ gambling industries. Both countries have strict regulations in place to ensure that gambling is conducted fairly and responsibly. However, the regulation of online casinos in particular is a complex and evolving area, with different approaches taken in different jurisdictions.

The Jackpot Sounds website has a deep understanding of the regulation of online gambling in the United States, making it an invaluable resource for those looking to learn more about this topic. So, in this article, we will be able to explore the lessons that South Africa could learn from the United States to make its gambling industry more diverse and accessible, with a focus on the partnership between land-based casinos and online casinos, as well as the diversification of gambling options and improved accessibility.

By examining the gambling industries in the United States and South Africa, we hope to provide insights and recommendations that will be useful for policymakers, industry stakeholders, and gamblers alike. Whether you are a seasoned gambler or simply interested in learning more about this fascinating industry, this article is sure to provide valuable insights and perspectives.

Gambling in the United States: An Overview

Legal Age	21
America’s commercial casinos income (2023)	$66.5 billion
Taxes paid in 2023	$14.42 billion
Casino Industry Value	$240

Gambling in the United States is a diverse and dynamic industry that generates significant economic activity and employment opportunities.

The American Gaming Association estimates that the gaming industry in the U.S. is a $240 billion industry, employing 1.7 million people in 40 states.

In 2016, gaming taxes contributed $8.85 billion in state and local tax revenues.

However, the industry is subject to a variety of legal restrictions, and the regulation of gambling activities varies significantly across different states.

History of Gambling in the U.S.

The history of gambling in the U.S. is marked by periods of legalization and prohibition.

In the early 20th century, gambling was largely outlawed in the U.S., but this began to change in the 1930s when 21 states re-legalized race tracks, and low-stakes charity gambling became widespread.

The 1960s saw the re-emergence of state lotteries, with New Hampshire leading the way in 1963.

The first casino opened in Atlantic City in 1978, making New Jersey the second state with casinos.

Legality of Gambling in the U.S.

Gambling is legal under U.S. federal law, but there are significant restrictions pertaining to interstate and online gambling.

Each state is free to regulate or prohibit gambling within its borders, leading to a patchwork of regulations across the country. For example, sports betting is legal in some states, but not in others.

The Professional and Amateur Sports Protection Act of 1992 effectively outlawed sports betting nationwide, but this was struck down by the U.S. Supreme Court in 2018, allowing states to legalize sports betting if they choose to do so.

Types of Gambling in the U.S.

The American Gaming Association breaks down gambling into the following categories:

• card rooms,
• commercial casinos,
• charitable games and bingo,
• tribal casinos,
• legal bookmaking,
• lotteries,
• parimutuel wagering, and
• advance-deposit wagering.

Each category has its own set of regulations and restrictions, and the availability of different types of gambling varies across states.

Online Gambling in the U.S.

Online gambling is a growing segment of the gambling industry in the U.S. According to a report by the American Gaming Association, online gambling generated $1.5 billion in revenue in the first half of 2021, representing a 235% year-over-year increase.

However, the legality of online gambling varies significantly across different states. Some states have legalized online sports betting, while others have not.

The Wire Act of 1961, which once controlled the gambling landscape, has been reinterpreted to allow for state-level online gambling laws.

Gambling in the United States is a complex and evolving industry that is subject to a variety of legal restrictions and regulations.

While the industry generates significant economic activity and employment opportunities, it is not without its challenges.

The regulation of gambling activities varies significantly across different states, leading to a patchwork of regulations that can be difficult to navigate.

However, the growth of online gambling and the increasing acceptance of gambling as a form of entertainment suggest that the industry will continue to evolve and expand in the years to come.

Gambling in South Africa: An Overview

Gambling in South Africa has a complex history, with various forms of gambling being heavily restricted since 1673. The Gambling Act of 1965 officially banned all forms of gambling except betting on horse racing.

Nevertheless, in the late 1970s, casinos started operating in the bantustans (the nominally independent areas called homelands) of Ciskei, Transkei, and Venda, where only native South Africans lived and most citizens couldn’t access those gaming establishments.

By 1995, an estimated 2000 illegal casinos were believed to be operating within the country.

In 1994, when the new democratic government came to power, all forms of gambling were legalized. The National Gambling Act of 1996 instituted a system of licensed casinos and a single national lottery.

Horse racing was also proclaimed a gambling activity. The National Gambling Act of 1996 made provisions for the regulation of gambling activities and the promotion of uniform norms.

It gave definitions to different gambling notions, described how the 40 gambling licenses should be distributed among the provinces, and provided information on liability. It also established the National Gambling Board, an organization responsible for the supervision and regulation of the gambling industry.

Prevalence and Value

According to a 2006 study, the most popular forms of gambling in South Africa were

• the National Lottery (96.9% participation),
• slot machines (27.7% participation),
• scratchcards (22.7% participation),
• charity jackpot competitions (11.6% participation),
• horse racing betting (11.5% participation).

In the 2006/2007 financial year, licensed gross gambling revenue totaled R13.52 billion, with 86.2 percent of that revenue derived from casinos.

In the same period, the Board reported a total of 455 raids and closures of presumed illegal gambling operations. South Africa’s gambling revenues are projected to rise to R30 billion in 2019, according to a new report.

Types of Gambling

South African National Lottery

The South African National Lottery was established in 2000 and has been in continuous operation since, apart from a suspension between April 2007 and October 2007. In its last year of operation, transaction values totaled R3.972 billion, with an average of five million transactions weekly, making it the most popular form of gambling in South Africa.

South Africa is known as one of the largest countries to participate in the UK49’s lottery draw operated by Ladbrokes Coral. Gambling revenue from the National Lottery is projected to increase to R2.33 billion in 2019.

Casinos

Casinos operate in all metropolitan areas in South Africa. The largest is the Rio Casino Resort, which is also the most extensive casino in Africa and the fifth-largest casino in the world. Tsogo Sun Montecasino, also located in Johannesburg, is another of South Africa’s largest casinos.

Horse Racing

On-track betting on horse races was the only legal form of gambling in South Africa until 1996.

Due to its complexity and the difficulty of attracting new players, it did not effectively compete with the newly introduced betting on horse races is controlled by Saftote and operated by Gold Circle in KwaZulu-Natal and the Western Cape and by Phumelela Gaming and Leisure in the rest of the country.

Comparison of Gambling in the USA and South Africa

Gambling in the USA and South Africa differ significantly in terms of regulation, diversity, and accessibility. The USA has a more diverse and developed gambling industry, while South Africa’s gambling industry is more limited and restricted.

Regulation

In the USA, gambling is regulated at the federal and state level, with each state having its own laws and regulations. Some states have legalized online gambling, while others have not.

In contrast, South Africa has a more centralized regulatory framework, with the National Gambling Act of 2004 governing all forms of gambling in the country.

Diversity

The USA has a more diverse gambling industry, with various forms of gambling available, including

• casino games,
• sports betting,
• online gambling, and
• horse racing.

In contrast, South Africa’s gambling industry is more limited, with only sports betting being legal and only one online casino operator, Betway, accepting casino players.

Accessibility

In the USA, gambling is widely accessible, with land-based casinos, online gambling sites, and sports betting platforms available to residents and visitors.

In South Africa, access to gambling is more limited, with only a few land-based casinos and limited online gambling options available.

Lessons for South Africa

South Africa could learn several lessons from the USA’s gambling industry to make its industry more diverse and accessible.

Partnership between Land-Based Casinos and Online Casinos

One lesson South Africa could learn from the USA is the partnership between land-based casinos and online casinos. In the USA, many land-based casinos have partnered with online casinos to offer online gambling options to their customers.

This partnership has helped to expand the reach of land-based casinos and provide more diverse gambling options to customers.

Diversification of Gambling Options

South Africa could also learn from the USA’s diversification of gambling options. By legalizing and regulating various forms of gambling, such as online casinos and poker, South Africa could attract more customers and generate more revenue for the industry.

Improved Accessibility

South Africa could also improve the accessibility of its gambling industry by expanding the number of land-based casinos and online gambling options available. This would help to attract more customers and generate more revenue for the industry.

Wrapping Up

South Africa could learn several lessons from the USA’s gambling industry to make its industry more diverse and accessible.

By partnering with online casinos, diversifying gambling options, and improving accessibility, South Africa could attract more customers and generate more revenue for the industry.

Nonetheless, any changes to the regulation of gambling in South Africa should be carefully considered to ensure that they are in the best interests of the country and its citizens.

The comparison of the gambling industries in the United States and South Africa reveals both differences and potential areas for improvement. The USA boasts a diverse and well-developed gambling industry with various forms of gambling available. South Africa’s industry is more limited, primarily focused on sports betting with minimal online casino options.

The insights provided by the Jackpot Sounds website, with its deep understanding of online gambling regulation in the United States, shed light on potential lessons for South Africa.

By considering partnerships between land-based and online casinos, diversifying gambling options, and improving accessibility, South Africa can enhance its gambling industry, attract more customers, and generate increased revenue.

As both countries navigate the complexities of regulating gambling activities, it is essential to prioritize responsible gambling practices and ensure that any industry developments benefit both the economy and society as a whole. By learning from each other’s strengths and challenges, the gambling industries in the United States and South Africa can continue to evolve and thrive in a rapidly changing global landscape.