The number of distressed gamblers seeking help has soared sevenfold in the past year as South Africans spent more than R4bn a day gambling and gaming platforms raked in R75bn in gross revenue.
The industry generated turnover of R1.14-trillion in the 2024 financial year, as millions of South Africans resorted to online and physical betting outlets in the hope of making a quick buck.
According to the National Gambling Board’s (NGB’s) latest annual report, the number of distressed calls received on the toll-free counselling line run by the South African Responsible Gambling Foundation (SARGF) shot up more than sevenfold to 1.1-million in the financial year 2024/25, from 140,263 calls received the previous year.
The government has expressed concern at the rapid growth in gambling, acknowledging the need for stronger regulations to govern the industry.
Banks have also flagged the rise in spending on gambling by customers in recent years, while some consumer-facing businesses have also raised concerns that gambling is eating into disposable income. The proliferation of online betting companies has further fuelled gambling activity due to the convenience of the platforms.
Evelyn Masotja, the deputy director-general for regulations at the department of trade, industry & competition (DTIC), said participation in gambling has grown significantly in South Africa. She highlighted excessive gambling advertising as part of the problem.
The lockdown ... fast-tracked the migration due to the limited human movement and contact restrictions of the lockdown.
— Sibongile Simelane-Quntana, executive director of the SARGF
“Gambling is a regulated industry which means there is a need for strong regulatory measures,” Masotja said.
Sibongile Simelane-Quntana, executive director of the SARGF, a nonprofit organisation funded by the gambling industry to assist problem gamblers, said those seeking help were either employed full-time, part-time or self-employed.
"[That] tells us their gambling was not for entertainment, but became a problem as soon as their gambling intent became a source of a secondary income due to the tough socioeconomic conditions they found themselves in,” she said.
Online betting fuels the problem
Simelane-Quntana said that over the past four years there has been a rapid shift from land-based gambling and betting (casino, bingo, limited payout machines, sports betting and horse racing) to online betting.
Before the Covid lockdown there had been a steady migration from land-based to online betting as the preferred mode of gambling.
“The lockdown then fast-tracked the migration due to the limited human movement and contact restrictions of the lockdown,” Simelane-Quntana said.
The gambling industry has been growing at an estimated 47% annually since 2021, and contributes 0.83% to GDP.
The NGB’s latest annual report says the industry generated R74.9bn in revenue, with betting on horses and sporting activities accounting for more than half the gross revenue at 70%, followed by casinos at 22%, limited payout machines at 6% and bingo at 2%. The industry overall paid R5.8bn in taxes.
Vulnerable groups most affected
According to the NGB’s report, more than half of working South Africans are classified as gamblers, with 27% of punters being recipients of the government’s social grant recipients who place bets using that money.
Research on the socioeconomic impact of gambling revealed increases in gambling nationwide, coupled with an increase in problem gambling to as much as 31%, the NGB said.
There has also been a worrying increase in the number of young distressed gamblers seeking help for addiction. As unemployment rises, many youngsters are turning to high-risk betting as a perceived income source, often with devastating financial and social consequences, the SARGF said.
The organisation said many view gambling as their only shot at financial relief. Limited access to skills development and formal employment further fuels reliance on high-risk bets.
“We are aware that there is a substantial increase in adults and young children who are now addicted to gambling,” Masotja said.
Aggressive digital and mass media marketing by gambling operators exacerbates the problem.
The SARGF has urged stakeholders, including policymakers, gambling operators and the public, to work together to strengthen the legislative framework and promote responsible gambling practices.
Calls for stronger regulation
Masotja said the DTIC has been making efforts over the years to strengthen regulation of the gambling industry.
However, the National Gambling Amendment Act of 2008, which was intended to address the proliferation of online gambling, wasn’t promulgated due to parliament’s concerns at the time on the potential impact on vulnerable persons.
In 2016, the cabinet approved the National Gambling Policy to address regulatory loopholes, and in 2018 another bill on gambling was introduced in parliament. After some revisions the National Assembly passed the bill, but it was rejected by the National Council of Provinces.
The legislation was then referred to mediation in December 2021. The DTIC said the mediation process was concluded in June this year, and the bill is due to be reintroduced in the National Assembly.
Advertising under scrutiny
Lungile Dukwana, acting CEO of the NGB, stated in the annual report that “gambling advertising is a significant risk facing the gambling industry as [it] reaches all segments of society”.
Gail Schimmel, CEO of the Advertising Regulatory Board, said the body had worked with the NGB to collate existing laws on gambling advertising into one appendix.
“We then started work on looking at what more needs to be done in this code, and working with the Responsible Gambling Foundation we have a draft that will be launched for comment at the Gambling Summit in November,” Schimmel said.
“From there we will hold an industry workshop in January to work on finalising that code. We have also engaged with the NGB on how we can work together to ensure advertisers comply with existing law.”
Industry at a crossroads
Perpetua Investment Managers said in a report released earlier this year that the local gambling industry was at a crossroads, needing to balance rapid growth with responsible gambling practices.
A sustainable industry was one in which all operators were held to a high standard of responsibility, with recreational gambling driving long-term growth, it added.
Lonwabo Maqubela, deputy chief investment officer at Perpetua, said that unlike in the past when people used to be physically present at casinos or horse-racing outlets to gamble, “today people gamble on their phones, which makes it very easy to get lost in the activity, hide it and get into financial trouble”.
Compulsive gambling is a secretive illness, so the fact that you can gamble at any time makes things seriously worse.
— Merlin Rangasami, recovering compulsive gambler
He said more regulation was necessary, “for example, providing identification, or introducing daily spend time limits”. However, addicts can find a way around this by using multiple providers.
“If it’s illegal offshore [online gambling] companies that don’t meet local requirements then the telcos can block them, or banks can prevent the flow of money,” Maqubela said.
To curb excessive gambling, the UK has introduced a cap on slots and increased affordability checks, while the Netherlands has imposed tighter deposit limits.
Economist Dawie Roodt said that while more regulation was not ideal because it risked driving gambling activities underground, there was a need to educate people about the dangers of gambling.
Merlin Rangasami, a recovering compulsive gambler who is now part of the Gamblers Anonymous support group, said: “We have definitely seen a massive rise in problem or compulsive gambling in recent times. We have seen more younger members entering the fellowship.
“The huge amount of wins and then losses are really scary. People are finding it easier to gamble now than before because of the fact that all you need is a smartphone. Compulsive gambling is a secretive illness, so the fact that you can gamble at any time makes things seriously worse.”
Rangasami said gambling addicts were also prone to committing minor and serious crimes to fund their habit, while others borrowed excessively.
“People are also borrowing uncontrollably from financial institutions, and when that is exhausted they turn to loan sharks. The rate of suicide has also increased due to gambling. People, after huge losses, feel that there is no other way out,” he said.
According to the SARGF, 83.1% of problem gamblers said they had accumulated more debt between April and June this year. In the 2024/25 financial year, 83.7% reported accumulating more debt, up from 79.8% the previous year.
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