Horse racing, once South Africa’s dominant betting attraction, now generates less than 1% of total gaming revenue. The sport, which has operated in the country for over 160 years, relies heavily on sponsorship to remain viable. One of the year’s major events, the Metropolitan Stakes at Kenilworth Racecourse in Cape Town, will take place this Saturday, promising glamour and excitement despite a challenging commercial environment.
National Gambling Board figures highlight the market’s dramatic growth over two decades. Total gambling turnover reached roughly 100 billion rand ($6.34 billion) in 2002, climbing to 1.5 trillion rand by March 2025. Horse racing, however, has not seen comparable growth, with other gambling formats such as online sports betting, casinos, and lotteries dominating the market.
Market Changes Challenge Sustainability
“The gambling landscape has changed drastically,” said Vee Moodley, chief executive officer of the National Horseracing Authority (NHA). “Horse racing remains stuck at around the 11 billion rand mark in revenue per year and that represents less than 1% of the total gambling market. Within that 11 billion, the racing tote contributes just over 1.7 billion. The original tote business model for horse racing in South Africa is no longer sustainable.”
Moodley emphasized the sport’s reliance on sponsors for survival:“The industry is effectively operating on the benevolence of sponsors such as Hollywoodbets and the Oppenheimer family. That support is the only thing that keeps racing alive.” Without sustained sponsorship, many within the industry fear further contraction, particularly at smaller racecourses or events without high-profile backing.
Attracting Younger Bettors Remains Key
The sector’s struggle is not unique to South Africa. Capturing younger audiences remains a pressing challenge. “Today’s youth are very demanding and want instant gratification,” Moodley said. “Horse racing is an intelligent bet that requires studying form and understanding a complex product, unlike many of the newer betting options, which are far simpler.”
He noted the sport cannot be further simplified without compromising its integrity: “Racing now competes with instantaneous products, where bets can be placed every few seconds, turning wagering into almost a stock exchange. That is where younger punters gravitate to.” Operators must explore new ways to engage these bettors while maintaining the complexity that defines horse racing. Initiatives to improve digital engagement, live-streaming, and interactive betting experiences are now central to long-term viability.
Strengths and Global Appeal
Despite these hurdles, South Africa retains notable strengths in the international racing ecosystem. “Our breeding industry is exceptionally strong,” Moodley said. “Thanks to the exchange rate, we can produce a foal at around a twentieth of the cost of the rest of the world. All our races are broadcast internationally because both our products and our regulatory framework meet world-class standards.”
The Metropolitan Stakes will highlight international collaboration, with the Hong Kong Jockey Club hosting pools under an agreement with Race Coast WC and the NHA. Such partnerships demonstrate efforts to maintain relevance and global visibility as traditional revenue models face increasing pressure. For the industry to survive, it must continue leveraging international audiences and innovative sponsorship arrangements to complement declining domestic revenues.
Source:
“Horse racing-South Africa facing big hurdles as betting industry dynamic shifts”, reuters.com, January 29, 2026
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