South Africa has a new crisis – and it’s getting worse
South Africa is seeing a massive rise in gambling and betting, with increased calls for regulation gripping the industry.
According to the National Gambling Board of South Africa, gross gambling revenue across South Africa was R59.3 billion in the 2023/24 financial year, a 25.7% rise from the previous.
Betting was the primary reason for the jump in 2023/24, with growth in the casino industry being flat.
Although casinos were previously the most popular form of gambling, their market share has dropped from 84% in 2009/10 to just 10%.
During the COVID-19 pandemic, betting became the dominant form of gambling, buoyed by the digital age.
This can be seen in gambling giant Sun International’s latest results, where its urban casinos saw a 1.4% decline in income, while online betting platform SunBet saw a 70.7% increase.
The rise in gambling can also be seen in Stats SA’s latest report on the personal services industry, which looked at financial data for almost 100 economic activities across several industries.
Enterprises that provide bookmaker and online gambling services, casino services, gambling slot machines, and lottery and off-track betting options are also included.
Bookmakers and online gambling services have seen a rapid surge in income, outpacing all other activities, while gambling slot machine services were also featured in the top 10.
Casino and gambling houses were major losses, registering a decline of 3.3% per annum over the same period, placing the activity in the bottom 10 worst performers.
Bookmaker and online gambling services generated R152.6 billion in 2023 from services rendered, sharply up from R10.1 billion in 2018.
The report group includes all forms of gambling in the broader ‘gambling and betting’ category, and accounts for a massive slice of total income in the personal services industry.
It closely matches the amount generated from health activities, which includes hospital services, health professionals and veterinarians.
Booming business
Another data source also highlights the monetary value of the rise in gambling and betting. The Annual Financial Statistics (AFS) survey collects financial data from the formal business sector.
Turnover generated by the category ‘other recreational activities’ nearly tripled during 2023 compared with 2022, with gambling and betting the most significant contributors to the increase.
Regarding the consumer price index, gambling and betting activities are listed as one of 391 products and services in the 2025 CPI basket.
This includes lottery tickets, casinos, betting, bingo and Limited Payout Machines. Stats SA said the activity accounts for 1.6% of total household spending, making it the 12th highest weighted basket, just behind beer.
When it comes to the recreation, sport & culture group of products, gambling accounts for over 50% of household spending. Gym fees are second but are far behind at 5.9%.
Calls for greater regulation
Amid the rise in gambling and betting, there are increased calls for regulations due to the disastrous impacts that the addiction can have on communities.
Rise Mzansi MP, Makashule Gana, has been a vocal critic of the proliferation of gambling, noting that legislation and regulations have failed to keep up with a rapidly growing industry.
Victims are often those from vulnerable groups, including school learners and social grant recipients.
Gana warned that if South Africa does not properly regulate the gambling industry and fully fund the South African Responsible Gambling Foundation, South Africa will lose a generation to gambling addiction.
The National Gambling Board has seen a rapid rise in problem gambling among people aged 25 to 35. Problem gamblers also increased eightfold from 375 in 2020/21 to 2,977 in 2023/2024.
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