More South Africans are using risky loans and social grant money to gamble online, according to a new report by the Solidarity Research Institute (SRI).
The report found that about R1.5 trillion was bet across the whole South African gambling industry in the 2024/25 financial year. Nearly three quarters of that money was bet online.
“Behind these figures are ordinary South Africans losing their hard-earned money, households already struggling to keep their heads above water, and families who have to bear the consequences,” said SRI researcher Theuns Du Buisson, who wrote the report.
After paying out winnings, gambling companies kept R74.5 billion in gross gambling revenue. Solidarity said the R1.5 trillion figure counts the same money more than once when people bet it again.
Du Buisson said the industry was growing very fast. He said its cost could not be measured only in rands and cents.
The report uses early research from the National Gambling Board (NGB). The board found that more people were using loans and social grants to gamble online.
In its strategic plan, the NGB said problem gambling rose from 6% in 2017 to 31% in 2023. The board said this needed urgent action to promote responsible gambling.
Du Buisson said studies in other countries show online gambling is two to four times more likely to lead to problem gambling than other types.
“The casino is no longer located in a building you have to drive to,” he said. “It is in your pocket. You can wager money anytime, anywhere, with just a few taps on your phone.”
The report points to steps such as tighter limits on gambling advertising and stronger action against illegal online casinos. It also calls for better protection for young people and vulnerable people.
Du Buisson said gambling is more and more often sold to South Africans as a way to earn extra money. He said this promise can tempt people who are already struggling. But he said gambling was more likely to make their money problems worse.
He said Solidarity’s work on the issue was part of its job to protect working South Africans. “We fight every day for our members’ jobs, their salaries, and their social security,” he said.
“However, it is of little use if people work hard to earn an income, only to see it wiped out by gambling losses,” Du Buisson added.
Hannes Noëth, executive director of Solidarity Helping Hand, said the biggest danger of online gambling is the harm it causes to other people. He said money meant for food and other basics was more and more often going to gambling.
“When money intended for food, school fees, rent, or electricity is gambled away, it is not only the person who placed the bet who loses,” Noëth said.
“It also affects the children who have to do without necessities and the family that must try to repair the financial and emotional damage,” he said.
Separately, casino group Sun International has announced a Responsible Gambling Charter. The charter sets out the company’s promises on promoting responsible gambling.
Source: this article is based on reporting by Daily Investor. Image: Daily Investor. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.