How does the Mpumalanga gambling sector punch above its weight?

Despite being a middling South African province in terms of population, Mpumalanga’s gambling sector continues to flourish. Vusi Mtsweni, CEO of the regulator, tells iGB why its reputation for stability and integrity has made it one of South Africa’s most influential gambling regions.

Mpumalanga is the second-smallest of South Africa’s nine provinces by land area, while its population of approximately 5.1 million is only the sixth biggest.

And yet, according to the most recently released figures from the National Gambling Board, Mpumalanga’s GGR for FY2024/25 of R22.25 billion ($1.15 billion) was second only to the Western Cape’s total of R23.13 billion.

Despite making up roughly 6.3% of South Africa’s land area and 8.3% of its population, Mpumalanga accounted for 29.9% of its total GGR.

According to Mtsweni, CEO of the Mpumalanga Economic Regulator (MER) which oversees gambling in the province, the region is able to “punch well above its weight” thanks to its reputation as one of the most “respected, credible and influential” regulators in South Africa.

Mtsweni explains why this is the case, telling iGB: “Over the years, we have built a reputation for being progressive without being reckless, innovative without compromising regulatory standards, and collaborative without sacrificing our independence as a regulator.

“I believe what truly distinguishes Mpumalanga is the quality of its governance. The MER has maintained favourable audit outcomes since its establishment in 1995. That represents three decades of sound governance, financial discipline, accountability and compliance with legislative prescripts. In today’s environment, where public trust in institutions cannot be taken for granted, that track record matters.”

Why do operators choose Mpumalanga?

Mtsweni believes another of the MER’s strengths is stability, with its continuity at leadership level enabling the regulator to make decisions that are both consistent and focused on long-term outcomes.

This all combines to create trust with operators, an element that Mtsweni believes is vital to fostering a regulatory environment that is both conducive to growth and safe for players.

“In my experience, operators are not necessarily looking for the easiest regulator,” he explains. “They are looking for a regulator they can trust.

“Mpumalanga has built a reputation for integrity. Operators know that we will enforce the law when necessary. They know that non-compliance carries consequences. Yet they also know that decisions are made fairly, transparently and without favour. In my experience, investors and operators value certainty and integrity more than anything else.

“For me, that is the real measure of success; not being the biggest, but being among the most trusted.”

Mtsweni says this trust has been built on providing operators with regulatory certainty, with an emphasis on providing rules that are “risk-based, practical and outcomes-focused”.

“Our role is not to manage operators’ businesses for them,” Mtsweni adds. “Nor is it to create unnecessary administrative burdens that stifle innovation and investment. Our role is to establish clear standards, monitor outcomes and intervene where risks emerge.

“Ultimately, I believe operators choose Mpumalanga because they know what they are getting: a regulator that is professional, credible, transparent and committed to creating an environment where legitimate businesses can succeed while consumers remain protected.”

The future of online betting in South Africa

The MER was the first gambling regulator to be established in democratic South Africa and among the first to license casinos.

It also played a key role in supporting and championing the burgeoning licensed online sector in South Africa, which continues to flourish.

Sun International CEO Ulrik Bengtsson recently voiced his belief that the South African online gambling sector will roughly double in size by 2030, reaching approximately R100 billion.

Mtsweni expects the market to become “significantly more digital” over the coming years, especially as technology continues to develop.

“Technology is reshaping virtually every aspect of the gambling ecosystem, from how consumers place bets and make payments, to how operators engage with customers and how regulators conduct oversight,” Mtsweni continues. “I expect those trends to accelerate rather than slow down.

“The distinction between traditional gambling sectors is also likely to become increasingly blurred.

“Consumers are less concerned about whether a product originated from a bookmaker, a casino or another gambling platform. They are looking for convenience, accessibility and seamless digital experiences. As technology evolves, operators will continue to diversify their offerings and create increasingly integrated entertainment ecosystems.”

But for Mtsweni, the rise of online betting “creates both opportunities and responsibilities”, particularly when it comes to responsible gambling.

“As gambling products become more accessible through digital platforms, regulators and operators will need to invest more heavily in behavioural monitoring, early intervention systems, consumer education and data-driven responsible gambling tools,” he says.

“Technology can be part of the problem, but it can also be part of the solution.”