From CNBC

The gambling industry in South Africa continues to thrive despite the tough economic climate, reports Wilhelmina Maboja.

“Gambling has been under pressure but people still do it, and it is an entertainment form. It is resilient but it has taken a bit of a knock,” Nikki Forster, PricewaterhouseCoopers gambling industry leader for South Africa, told CNBC Africa.

“It hasn’t seen some of the initial high growth rates, but it’s still growing.”

The gambling industry is a prominent entertainment form across the globe. As a business, however, a large portion of its costs are fixed and compliance is stringent.

South Africa has a large gambling following, and Kenya and Nigeria have been recent additions to the growth in African gambling countries.

“South Africa is an interesting market because it’s quite diverse. Casinos have been with us for more than 10 years. It’s now a mature market,” Forster explained.

“What all the casinos are now doing to attract more people is put in cinemas, ten pin bowling, upgrading the restaurants.”

Markets in Nigeria and Kenya are however significantly smaller than South Africa’s despite growing interest for them.

“Obviously the market [in Nigeria] is much smaller for a number of reasons. South Africa is a bigger economy, and it’s got a much more established gambling industry. Nigeria, for example, [gambling] is illegal. Unlike South Africa in the early days, there are unlicensed casinos and the regulatory authorities are trying to cut down on those,” said Forster.

Breaking into the gambling industry today in South Africa is highly challenging. Nigeria and Kenya provide easier opportunity, but the level of investment needed is not always supported.