Calls to regulate gambling adverts

South Africa's online gambling generated over R59 billion in annual revenue, prompting calls for tighter rules to protect vulnerable groups

- Aarti Bhana

For many South Africans, online gambling has become a way out of poverty, prompting a surge that has left policymakers worried about the damage to livelihoods and leading to calls for stricter regulations around advertising in the industry.

Since the Covid-19 pandemic, sports betting and online gambling have outpaced traditional casino gambling, driven by the growing accessibility of online platforms.

It was initially primarily a recreational activity, but it has quickly become a means for economic survival.

Beneficiaries of government social grants and even some tertiary students funded through the National Student Financial Aid Scheme are using their allowances for online gambling and betting, research suggests.

"Some of our studies are suggesting that youth is gambling quite a lot, and there's a certain age that we're actually observing where they are actually gambling," acting chief executive of the National Gambling Board, Lungile Dukwana, said.

"It is a concern for us, and we are investing in education with some tertiary institutions."

Gross gambling revenue rose 25.7% to R59.3 billion during the 2023-2024 financial year, with betting contributing 60.5% with R35.9 billion, according to research published by the board last month.

Casinos generated 29.3% with R17.4 billion, while limited payout machines brought in 7% with R4.1 billion and bingo brought in 3.2% with R1.9 billion.

Betting saw the strongest growth at 51.2%, while casinos and bingo recorded minimal gains and limited payout machine revenue declined, the research showed.

The board said R1.1 trillion was wagered across the industry during the period, a 40% increase.

Approximately 14 000 formal jobs were created in the sector, with spillovers into advertising, telecommunications, and information technology services, according to Anchor Capital economist Casey Sprakes.