The R1.5 trillion industry that is keeping South African families poor

South Africans are increasingly taking out risky loans and social grants to spend on online gambling, placing them under growing financial strain as the industry continues to thrive.

This is the warning from civil society organisation Solidarity, based on findings from a new research report by the Solidarity Research Institute (SRI).

According to the report, online gambling in South Africa grew 390% between 2021 and 2025, driven by increased accessibility on mobile phones and widespread gambling advertising.

Approximately R1.5 trillion was wagered across the entire South African gambling industry in the 2024/25 financial year, with nearly three-quarters of this taking place online.

Of this, gambling operators retained R74.5 billion in gross gambling revenue after paying out winnings. Solidarity noted that these figures are inclusive of repeat wagers using the same funds.

SRI researcher Theuns Du Buisson, who wrote the report, said the findings demonstrated the tightening grip of gambling on South African households’ money.

“We are talking about an industry that is growing at an astonishing rate, but the cost involved cannot be measured merely in rands and cents,” Du Buisson said.

“Behind these figures are ordinary South Africans losing their hard-earned money, households already struggling to keep their heads above water, and families who have to bear the consequences.”

Du Buisson’s report draws on preliminary research from the National Gambling Board (NGB), which flagged a growing use of loans and social grant funding for online gambling.

In its strategic plan, the NGB said problem gambling had risen from 6% in 2017 to 31% in 2023, requiring urgent intervention in promoting responsible gambling initiatives.

According to Du Buisson, international research studies have consistently shown that online gambling is two to four times more likely to lead to problem gambling than other forms.

“The casino is no longer located in a building you have to drive to,” Du Buisson said. “It is in your pocket. You can wager money anytime, anywhere, with just a few taps on your phone.”

Stemming the tide of gambling in South Africa

Solidarity has said it will use the findings of the report to push for stricter regulations on both online gambling platforms and gambling advertising.

These include tighter restrictions on gambling marketing, stronger enforcement of existing bans on illegal online casinos, and greater protection for young people and vulnerable individuals.

Du Buisson said Solidarity’s involvement in the issue was an extension of its mandate to protect the interests of working South Africans.

“We fight every day for our members’ jobs, their salaries, and their social security,” Du Buisson said. “However, it is of little use if people work hard to earn an income, only to see it wiped out by gambling losses.”

“We want to protect not only what people earn, but also what they can build for their families with that income.”

Du Buisson pointed out that gambling is being increasingly promoted as an opportunity for South Africans to earn extra income.

While he said the promise of extra money would be particularly enticing for someone already struggling financially, he stressed that gambling was more likely to make the situation worse.

Hannes Noëth, Executive Director of Solidarity Helping Hand, said the real danger of online gambling lies in the consequences it can have beyond the gambler.

He said the family cost of the problem needed careful consideration, as money intended for food and other essentials was increasingly being redirected towards gambling.

“When money intended for food, school fees, rent, or electricity is gambled away, it is not only the person who placed the bet who loses,” Noëth said.

“It also affects the children who have to do without necessities and the family that must try to repair the financial and emotional damage. It impacts marriages, children, family relationships, and entire communities.”

Sun International recently announced the launch of a Responsible Gambling Charter, setting out key commitments from the company for the promotion of responsible gambling.

These include not playing gambling advertising during certain times, promoting player education, and preventing gambling on NSFAS and SASSA grants.