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National Gambling Board data shows about R1.5 trillion was wagered in SA’s gambling industry in 2024–2025.
South Africans are diverting money they are supposed to spend on groceries to try their luck on online gambling.
This is one of the biggest findings from a study conducted by Durban-based market research firm Trade Intelligence.
The online survey attracted 700 respondents in December, revealing that the recent surge in popularity of online gambling has highlighted its dark side.
According to Trade Intelligence, grocery spend is taking the biggest – or at least most widespread knock – from funds being diverted into online gambling.
“We provided a list of 10 categories where online gambling money might otherwise have been spent, and respondents selected an average of 2.2 of these categories, with ‘groceries / food and household essentials’ the most chosen category, and fast food and takeaways a distant second,” says the firm.
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Data from the National Gambling Board shows that about R1.5 trillion was wagered in South Africa’s gambling industry in 2024–2025, nearly one-third more than the previous financial year. The bulk of it – as well as the growth impetus – appears to be coming from online gambling.
Trade Intelligence notes the main motivation to engage with online gambling sites isn’t excitement, entertainment or escapism – it’s to win money.
The research found that nearly two out of three players said this was “definitely” a reason why they play or gamble.
While half of these players say “it depends” when asked whether they generally win or lose, Trade Intelligence says most of the other half admit they lose more than they win; 25% don’t keep track of what they spend, win or lose at all.
“The combination of these two findings underscores the desperation inherent in online gambling. Players are trying to ‘make money’ to buy things like groceries, but they are simultaneously jeopardising their household’s ability to afford these basic essentials by gambling with grocery money,” it says.
Interestingly, games like Aviator, Starburst, Sugar Rush, etc, are driving traffic to sites like Hollywoodbets, Easybet and Yesplay, it says.
Recognition of the impact of online gambling is coming from many quarters, including CEOs of retail companies (warning of significant spend being diverted) and the South African government.
In a bid to clamp down on problem gambling, in November, National Treasury said in a discussion paper released for public comment that it wants to increase the amount of tax online betting companies pay, regardless of whether they are legal or not.
National Treasury said the proposed tax aims to reduce the proliferation of online gambling activities. “The main objective of the reform would not be to raise further revenue, but rather to discourage problem and pathological gambling and their ill effects,” it said.
The discussion document proposes a new 20% national tax on gross gambling revenue – the amount bet minus winnings – for all online betting and interactive gambling operators.
Licensed bookmakers, which already pay value-added tax (VAT) and provincial gambling taxes totalling about 18% to 19% of their gross gaming revenue, would have to pay this new tax on top of existing charges. National Treasury estimates the extra tax would “translate into over R10 billion in additional revenue for national government”.
Pick n Pay CEO Sean Summers recently urged South African regulators to tighten controls on online gambling advertising, warning that the rapid growth of digital betting promotions is outpacing existing regulatory safeguards.
Summers said the scale and visibility of online gambling ads across digital platforms pose risks to consumers and vulnerable groups, and argued that stricter oversight is needed to curb aggressive marketing practices in the sector.
*The South African Responsible Gambling Foundation offers free, confidential counselling and treatment for people affected by problem gambling. Contact details for Gamblers Anonymous are here.
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