SA’s bookmakers have opened industry talks to consider measures the sector can take to bar Sassa social grant recipients and National Student Financial Aid Scheme (NSFAS) recipients from channelling taxpayer assistance to the scourge of online betting.
This as SA struggles to rein in an explosion in online betting, with millions of low-income, unemployed youths placing bets on digital platforms where the odds are overwhelmingly high against them.
For the 12 months to March, industry data shows the total value of gambling turnover in all gambling modes amounted to R1.5-trillion, including recycled funds (money wagered, won back and wagered again).
Sean Coleman, CEO of the SA Bookmakers’ Association (Saba), said the association was in talks with the SA Responsible Gambling Foundation (SARGF) to bar people who depend on state support from gambling online.
“Most of our interactions with the SARGF have been on whether the department of social development could interact with the department of trade, industry & competition and provide us with controlled access to the Sassa database and immediately exclude customers who are attempting to sign up,” Coleman said.
“The same applies to NSFAS. As an industry we don’t want to onboard customers who are Sassa grant recipients or NSFAS beneficiaries. That money is destined for other things and should achieve those end goals in terms of what the government wants to do.
“The envisioned guardrails are not within the banking system. My understanding is that Sassa has a database of grant recipients via their ID numbers, and so will NSFAS.”
Asked whether there will be Popia hurdles to clear to keep social grant recipients off online betting platforms, Coleman said that was one of the issues being considered.
“These are things that would need to be worked out but are not insurmountable. It may need to become a condition of the grants. If we are serious about these types of guardrails, authorisation may need to become a condition.”
According to estimates from asset management firm M&G, most online bettors fall within the 26-35 age bracket, many earning R5,000-R15,000 a month — a demographic with an unemployment rate exceeding 40%.
“At current run rates, we estimate that the money lost by South Africans to online betting platforms will soon be more than R50bn a year, suggesting that some families are diverting funds away from basic household needs towards high-risk gambling in the hope of quick financial relief,” the firm said.
The National Responsible Gambling Programme (NRGP) has reported a 55% increase in referrals of those seeking voluntary counselling and treatment for problem gambling from 2,662 in 2023/24 to 4,166 in 2024/25.
The National Gambling Board this year presented its socio-economic impact study for 2023/24 to MPs, which showed that there was a 65.7% gambling prevalence and 31% problem gambling prevalence, based on a sample size of 4,000.
Several retail industry leaders, including the CEOs of Pick n Pay and the Foschini Group, have called out the prevalence of gambling in SA.
The scourge is amplified by the proliferation of illegal online gambling, which, according to a study commissioned by Saba, accounts for 62% of total online gambling activity.
Saba said most of these illegal operators were hosted in offshore jurisdictions such as Curaçao, Malta, Gibraltar and the Philippines, “where ‘pseudo-licences’ are issued with minimal oversight”.
Rise Mzansi has led the political charge against the gambling crisis, calling for deeper industry reforms and regulation.
Party MP Makashule Gana this week met Betway CEO Laurence Michel to discuss reforming the sector.
“The meeting was productive and there were areas of agreement, particularly around advertising,” Gana said.
“I have warned that if the gambling industry does not work with legislators and make commitments to reform the gambling industry, but sits on the sidelines, the outcome will be undesirable.”
Online betting companies, particularly sports betting majors Betway and Hollywoodbets, have flooded the airwaves and billboards with advertising, roping in SA’s most recognisable sporting figures as brand ambassadors.
They are also the biggest sponsors of SA’s three key sporting codes: football, rugby and cricket.
Also read:
EDITORIAL: Act swiftly on gambling crisis
Gambling revenue hits R75bn as online betting surges amid poverty
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.