Desperate South Africans are risking it all to make ends meet
South Africans are increasingly turning to gambling as a way to make ends meet – and the rise of new digital channels to do so should be raising major red flags.
According to data from financial planners Olemera, South Africans have spent a massive R1.1 trillion on gambling in 2024 so far, already 40% more than in 2023.
One of the biggest drivers of gambling is sports betting, which has grown into a R420 billion industry in 2023, and set to account for even more in 2024.
The National Gambling Board’s 2022/23 national gambling statistics showed that sports betting has significantly grown its share of the gambling industry in South Africa over the past decade, from under 10% in 2009/10 to over half in 2022/23.
However, more worrying than the numbers themselves is the attitude towards gambling that goes along with it.
A recent survey conducted by online sports betting platform Bettabets almost half of all gamblers are doing so in the hope of meeting rising cost-of-living expenses such as school fees and rent – with 70% saying they gamble to supplement their income, rather than doing so for entertainment purposes.
“And when they do enjoy a gambling win, only 27% say they ‘always’ set aside a portion of their winnings for savings or investment purposes. Mostly, they spend the money immediately,” the group said.
“With South Africa having one of the lowest savings rates in the world, financial literacy is not one of our strong suits. And while gambling for fun and entertainment by a responsible adult is acceptable, betting to meet your monthly expenses or pay off other debts is irresponsible, as it may become and endless cycle,” it said.
Gary Walker, Managing Director of Olemera, many ‘problem gamblers’ see gambling as a path to financial security or success, often leading to risky behaviour and overlooking vital practices like budgeting.
For now, ‘problem gamblers’ are considered as being in the vast minority, with the South African Responsible Gambling Foundation pegging it at about 2.7% of the population.
1.5% of the population are considered “pathological or compulsive gamblers”. However, even with this low figures, this represents hundreds of thousands of South Africans.
Maseabata Mdee, a clinical psychologist from Randburg, said the psychology of gambling addiction is multifaceted and complex.
“While economic factors such as financial strain, unemployment, and poor financial literacy may play a role, there are also deeper motivations for gambling. For some, obtaining money becomes a primary goal, which can heighten the risk of problem gambling.”
Taking gambling online poses an even greater risk of breeding excessive gambling due to ease of access, Mdee said.
“(Online gambling) has effectively removed natural barriers like the need for transport or physical proximity to betting venues. Today, gambling is just a click away, and this accessibility can fuel addictive behaviours,” she said.
In South Africa, about 80% of sports betting is done online, with wagers made with just a couple of clicks on a computer or mobile device.
Well-known gambling companies such as Betway and Hollywoodbets dominate online betting in the country, as well as advertising and sports sponsorship.
There are various reasons given for the boom in sports betting in the country.
“One of the biggest factors in the growth of sports betting is simply increased awareness and visibility,” wrote Head of Yield at Sportingbet, Retief Uys.
Sports betting companies now advertise heavily during big sporting events, sponsor major teams and tournaments and even hold the naming rights for certain stadiums.
Notably, the newcomer SuperSportBet is the result of a partnership between Nigerian betting company KingMakers and MultiChoice, which launched in January and specifically targets sports fans.
This comes as MultiChoice notes that around 77% of DStv subscribers are said to be active betters or engage in match predictions – hence why they want to be their first point of reference in this regard.
KingMakers said that Africa is the fastest-growing gambling market in the world. Africa’s Gross Gaming Revenue (GGR) is expected to rise by 17% by 2027, beating Latin America and Asia and the Middle East, which are set to see growth of 13% and 7%, respectively.
Olemera’s Walker said that it is imperative that gamblers do so responsibly.
“With so much money at play, it’s essential for South African punters to understand how to gamble responsibly, manage their finances, and avoid the trap of relying on gambling to solve financial woes,” he said.
“This way, they can keep gambling as a source of entertainment without it turning into a cycle of debt and addiction.”
If you or someone you know is struggling with gambling addiction WhatsApp/SMS HELP To 076 675 0710 or email to [email protected]
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