South Africa’s horse racing loses ground in changing market
Horse racing was at the heart of South Africa’s betting scene in the 1980s, standing as the country’s primary form of gambling. However, today it makes up less than 1% of the total gaming earnings, with its survival increasingly reliant on sponsorship as the betting scene changes rapidly.
One of the country’s premier race meetings, the Metropolitan Stakes, takes place Saturday at Kenilworth Racecourse in Cape Town. The event promises glitz and glamour despite a bleak commercial backdrop.
Horse racing has operated in South Africa for over 160 years. According to National Gambling Board statistics, total gambling turnover stood at around 100 billion rand ($6.34 billion) in 2002. By the end of March 2025, that figure had grown dramatically to 1.5 trillion. Horse racing’s share has not followed the same growth trajectory.
Gambling market leaves racing behind
Once the dominant betting market, horse racing now barely registers in overall industry figures. Online sports betting, casinos, and lotteries have captured most new gambling demand. “The gambling landscape has changed drastically,” Vee Moodley, chief executive officer of the National Horseracing Authority (NHA), told Reuters.
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.
“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.
Struggling to win over younger punters
The challenges facing horse racing extend well beyond South Africa. Attracting a new generation remains a pressing concern. “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.”
“You cannot dilute horse racing betting any further to compete with these new formats, so operators have to find other ways to make the sport attractive to younger audiences,” Moodley added. “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.” Shorter attention spans and faster betting cycles continue reshaping wagering habits.
Strengths that still travel globally
South Africa, despite the challenges, still possesses a number of strengths in the global racing ecosystem. Its breeding programmes remain internationally respected. “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,” he added.
For Saturday’s Metropolitan Stakes, international collaboration remains central. The Hong Kong Jockey Club will host the pools. This arrangement operates under an agreement with Race Coast WC and the NHA. Such partnerships underline the industry’s efforts to remain relevant amid shifting betting dynamics.
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