South Africans spend R1.1 trillion on gambling: is this a crisis, an economic boon or a social catastrophe?

DOMESTIC VIOLENCE

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FOR the year ended March 2024, South Africans spent a staggering R1.1 trillion on gambling, a figure that dwarfs the budgets of key government departments like health and education. Lotteries, casinos, sports betting, and online gambling are responsible for this spike in betting.

While there is a national debate on this, with many pondering whether gambling activities could be defined as an economic lifeline for the poorest South Africans or is it a societal time bomb. The nation currently records a technical official unemployment rate of 32.9% (while economists argue that the actual rate is higher).

Inflation has been rampant over the last 5 years and is squeezing household budgets, while fuel prices and runaway transport costs add to the burden. Several South Africans are turning to gambling as a desperate escape from poverty. However, this pathway is accompanied by deep consequences.

There are deep costs associated with this choice, not only losing one's money but also the social issues that accompany gambling:

The economic impact

Could gambling boost GDP, or is it considered a drain on household incomes, where the R1.1 trillion gambling boom is a mystical economic mirage or possibly an economic disaster, and what is gambling’s real contribution to the South African economy?

@ Tax revenue records confirm that the gambling industry contributed R3.5 billion in tax revenue in 2023 (according to the National Gambling Board).

@ Employment within the sector accounts for over 100 000 jobs depend on casinos, bookmakers, and online platforms.