South Africa’s R1.1 trillion problem

Gambling in South Africa has seen an astronomical boom, with the number of people seeking help increasing nearly eightfold over the past four financial years.

The National Gambling Board’s (NGB) annual reports showed that 375 problem gamblers sought counselling from the South African Responsible Gambling Foundation (SARGF) in 2020/21, rising to 2,977 in 2023/2024.

This was highlighted by RISE Mzansi MP Makashule Gana, who outlined that there has been an equally dramatic increase in those assisted or referred for treatment under the category of relapsed clients and family referrals.

Problem gamblers are classified as individuals who have the urge to gamble continuously despite harmful negative consequences or the desire to stop gambling. 

This comes amid a booming industry in the country. Wagered money increased to R1.1 trillion in FY2023/24, a 40.2% leap from the previous year. Gross gambling revenue increased by 25.7% to reach R59.3 billion.

“While the abovementioned numbers [of those seeking help] seem minuscule, possibly due to many being too scared or ashamed of seeking help before it is too late, it is worth reiterating [the gambling spend in 2023/24],” said Gana.

“The growing number of people seeking help for gambling addiction can be attributed to a confluence of aggressive advertising by online betting companies and increased levels of unemployment and poverty,” he added.

All eyes on the industry

Political parties and other groups have been increasing their pressure on the government to crack down on the industry.

A recent Bettabets survey found that nearly half of gamblers in South Africa do it in the hope of meeting rising living costs, like school fees and rent, with 70% gambling to supplement their income, not for entertainment.

Only 27% of winners set aside part of their earnings for savings or investment, and most spend it immediately.

This highlights South Africa’s socio-economic woes, low savings rate, and irresponsibility of betting in the hopes of covering monthly expenses or paying off debts.

Gana recently observed that during the COVID-19 pandemic, the distribution of the Social Relief Grant coincided with an increase in gambling activity and revenue—a trend that persists to this day.

In response, Social Development Sisisi Tolashe said that “the department only addresses addictions that are within its mandate.”

“Seemingly no Government Department or Cabinet Minister, wants to act against gambling addicition,” said Gana.

With gambling addiction escalating and millions drawn in by pervasive advertising, calls for tighter regulations are growing louder.

The RISE Mzansi MP, whose party is part of the Government of National Unity (GNU), is calling on Parliament to prioritise and harmonise two bills—the Remote Gambling Bill and the National Gambling Amendment Bill.

Gana recently told BusinessTech that he believes the current National Gambling Act (NGA) “is inadequate” in tackling the current landscape, particularly in regulating online gambling and advertising.

He proposes upping gambling’s tax rate, as well as adding gambling as a “Sin Tax”, much like tobacco and alcohol. This is to disincentivise addiction while using the revenue generated for rehabilitation.

Currently, gambling companies pay 8% of their Gross Gambling Revenue, totaling R4.9 billion of the R59.8 billion revenue.

Gana also expressed concern about pervasive gambling ads, especially during sports events, and the rise of “career gamblers.”

He criticised the use of social media influencers promoting gambling, which he says creates unrealistic expectations of winnings while downplaying addiction risks.

The MP said his party “will continue pressing for Parliament and the Executive to take the gambling crisis seriously.”

“We also remain committed to advancing gambling reforms, which will, inter alia, see the regulation of gambling advertising and the introduction of a gambling sin tax – as is the case with the liquor and tobacco products.”

Regarding oversight, the National Gambling Board (NGB) is empowered by the NGA to oversee licensing and monitor licensees.

It is mandated to enhance broad-based public education, address illegality in the sector, and monitor socio-economic patterns of gambling activity within the country.

However, Daily Maverick reported in December 2024 how the explosion of gambling in South Africa “is happening at a time when the NGB does not, in fact, have a board — and has not had a board for a decade.”