Something needs to be done urgently to address the gambling crisis in the country.
The poor are being duped into believing that instant riches are just a click away, leading to further impoverishment. Studies have shown that about 27% of social grant recipients are using their meagre payouts to try their luck.
It is understandable. When one is in a hopeless situation it is tempting to clutch at straws. The prospects of finding a job are dim when unemployment is running at 33% and even higher among the youth and when economic growth is insufficient to match the growth in the labour market.
It is of no concern to betting companies that they are exploiting these feelings of desperation.
The problem has been growing worse over the years with the ease of betting on smartphones worsening the problem. Its scale is starkly demonstrated by the fact that in the 2024/25 financial year the gambling industry notched up R75bn in revenue, and that is not the total picture.
If one includes rollover bets, which indicate the intensity rather than the accrued revenue from betting, the situation is even more dire. This is where the punter’s winnings are retained in their account for further bets rather than being banked. In this regard, the industry’s turnover last year amounted to R1.5-trillion.
Another sign of false hopes is the R1.96bn spent last year on lottery tickets.
The main problem is illegal online betting offered by offshore betting companies. Admittedly this is difficult to regulate but mechanisms need to be found. The lack of regulation results in revenue and jobs being lost to other jurisdictions.
The National Gambling Board reported in parliament recently that 60% (about R47bn) of the industry’s recorded gross gambling revenue was generated from online betting.
Illegal gambling sites need to be blocked and consideration given to placing restrictions on the aggressive advertising of gambling that is taking place. While an outright ban on betting adverts would probably be a drastic step at least there should be a prohibition on their promising instant riches. Perhaps they should be obliged to carry such a warning in much the same way as cigarettes have to carry a health warning.
The Advertising Regulatory Board needs to urgently implement a code of good conduct for gambling advertising.
Other countries have recognised the need to regulate online gambling and have introduced legislation to do so. Apart from limiting its harm, tighter regulation could also boost tax revenue. The fiscus collected R5.8bn in taxes and levies last year, which could be greatly increased with tighter controls.
The National Gambling Act of 2004 is outdated and should be amended to address the changes in gambling caused by advances in technology. Previous attempts to modernise the legislation were hamstrung by parliamentary obstacles, an issue being the power of provincial governments to regulate gambling.
A Responsible Gambling Summit — which takes place in SA in November and will bring together regulators, policymakers, industry leaders and global experts — will hopefully provide a roadmap for the way forward.
It would also provide a strong signal of the commitment across political party lines if parliament’s portfolio committee on trade, industry & competition agrees to adopt the DA’s private member’s bill, the Remote Gambling Bill, as a starting point for thrashing out a common position.
The bill aims to regulate and require the licensing of online and remote gambling, includes provisions to regulate advertising and proposes measures to ensure responsible gambling.
Given the havoc caused to many lives through gambling it would be disastrous for the government to take over the national lottery in 2034 as planned. While the lure of additional revenue might be tempting the moral hazard of such a step is too great and would defeat the government’s overriding policy objective of addressing poverty.
