The rapid increase gives you an idea of the growing influence the industry is having on everyday existence. Gross gambling revenue reached R59.3 billion in the 2023/24 fiscal year, as per the latest annual report published by the National Gambling Board of South Africa in 2023. The figure is up 25.7% compared with the previous year and is close to three times the R23.3 billion yielded three years earlier.

Changing spending patterns

The increase in gambling spend is evidence of priorities shifting among households. The current 12th highest spend among households is on gambling and is after beer, as Statistics South Africa shows. Gambling is the clear leader in the recreation, sport, and culture cluster, which contributes more than half of the spending in the cluster. The cluster contributions dwarf the budgets at the household level, with an overwhelming impact on South Africa’s economy. Perpetua, an investment management firm, also pointed out that gambling contributes approximately 1% of South Africa’s GDP, generating R4.8 billion for the public purse and sustaining more than 32,000 jobs.

South Africa’s online gambling explosion

Online gambling primarily propels the growth. Sports betting is at the forefront, constituting 61%, followed closely by Lotto at 53%, and slots at 52%. Gambling has evolved from an uncommon activity to a weekly, and for numerous individuals, even a daily ritual. The Old Mutual’s Savings and Investment Monitor disclosed that 62% of gamblers engage in play at least once a week, with nearly 40% participating even more frequently. Men and individuals aged between 30 and 49 exhibit the highest levels of involvement in these activities.

This transformation is clearly visible from the growth of online and bookmaker services, which produced R152.6 billion in 2023, an increase from R10.1 billion in 2018. In contrast, traditional casinos, previously the frontrunners, have experienced a stagnation in their market share. Instead, betting platforms and online services have emerged as the leaders in the industry, seizing a considerable segment of the market and reshaping the gambling landscape in South Africa.

Effect on households and risks

The increasing accessibility of online gambling has enormous consequences. The report by Old Mutual finds that almost half of the working gamblers now play frequently, with the aim of meeting expenses or settling debts. Nevertheless, this industry also holds some risk.

 The National Gambling Board warns that “of all gambling strategies, knowing when to quit may be best.” Regardless of this advice, many find that they are unable to stop their gambling activities because the promise of instant wealth and easy triumphs remains so strong.

With online gambling being pursued by half a million people and numerous physical casinos remaining in operation, the industry’s effect shows no signs of abating. However, the rising costs related to gambling create concerns over the financial stability of households. As gambling continues to take up an increasingly large part of budgets in households, the prospects of financial stress as well as more pressure on families remain an overriding issue.

Overall, the rise of online gambling in South Africa suggests further fundamental changes in consumer patterns and access to the internet. While significantly contributing to the economy, at the same time, it also poses issues that households and the regulating authorities will have to face in the upcoming years.