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South Africa’s gambling industry has quietly become a R75 billion giant, a figure comparable to the Western Cape Government’s total annual budget. What started as a handful of casinos in the post-apartheid era has exploded into a sprawling ecosystem of sportsbooks, slot machines, and online platforms. Forty-two percent of South Africans now make monthly gambling payments, according to recently released Roots data, a higher proportion than those paying monthly insurance premiums or school fees.

Eighty20 Consulting, South Africa’s leading consumer insights and data science company, looks more closely at the impact of this relatively new expenditure on South African disposable income.

Who is gambling and what are they spending?

According to the Roots survey, online gambling now ranks among core monthly household expenses like medical aid, funeral cover and internet access. The demographic profile reveals a predominantly male activity that transcends traditional socioeconomic boundaries, particularly at the extremes – both wealthy and poor households are highly correlated with gambling, as are both highly educated and poorly educated individuals. Lottery ticket purchasers show a similar distribution but are much more evenly balanced by gender.

People rarely admit the full extent of gambling spending in surveys. The social stigma around excessive gambling creates clear incentive for underreporting, suggesting actual participation and spending are likely higher.

❝ While the gambling industry will point to the creation of 33,169 direct and 144,000 indirect jobs, and contributions of nearly R6bn in taxes and levies, concern about gambling’s societal impact is mounting.

Growing public concern

While the gambling industry will point to the creation of 33,169 direct and 144,000 indirect jobs, and contributions of nearly R6bn in taxes and levies, concern about gambling’s societal impact is mounting. Pick n Pay CEO Sean Summers recently suggested a ban on online gambling ads entirely, calling the industry ‘totally out of control.’   KLA, in partnership with YouGov, shows a significant shift: the proportion of South Africans who feel all gambling should be illegal has increased from 33% in 2021 to over 40% in recent years. Religious affiliation often correlates with opposition, with self-identified Christians or Baptists (38%) and Catholics (11%) most likely to support prohibition.

R1.5 trillion wagered

While survey data reveals who participates (and who condemns it), industry data shows the actual amounts spent. South Africans wagered R1.5 trillion ($80 billion) in 2024-25, up 36% from the previous year, according to the National Gambling Board.

This massive churn of money has led numerous surveys to find people claiming gambling winnings as an alternate income source. The logic is flawed but understandable. While the industry ultimately retained R75 billion, the remaining R1.425 trillion was redistributed as winnings. This recycling effect is critical: the average gambler experiences win alongside losses, creating the perception that gambling generates income rather than consuming it.

❝ Gambling doesn’t feel like pure expense because winners exist and are visible –  Hollywoodbets’ recent ad campaign celebrating millionaire winners is a good example.

Gambling doesn’t feel like pure expense because winners exist and are visible –  Hollywoodbets’ recent ad campaign celebrating millionaire winners is a good example. Unlike paying for groceries or rent where money simply disappears, gambling transforms expenditure into potential income in participants’ minds, with each payout reinforcing the belief that the next bet could tip the balance positively.

This income illusion is further reinforced by framing: many participants categorise gambling as entertainment spending, further obscuring the net financial loss. According to Statistics South Africa, gambling makes up 55% of household spending on recreation, sport, and culture (1.6% of total household expenditure). This growth in expenditure on gambling puts strain on discretionary spend, which might have otherwise gone to other forms of entertainment, be they restaurant meals, a trip to the cinema, video games or streaming services.

The online gambling explosion

The story is all about online gambling. The industry breakdown reveals a dramatic shift: sports betting – particularly online, now accounts for 70% of total revenue, nearly triple what casinos generate. Traditional casino revenue continues to decline.

Online gambling’s rapid growth stems from converging trends. The Covid lockdowns normalised digital transactions and entertainment. Smartphone access surged to 77% of households, making betting platforms universally accessible. The result: 81% of online bets now happen on smartphones and tablets. High inflation coupled with stagnant wages since Covid has pushed people toward increasingly risky financial behaviours: side hustles, over-extended credit and gambling as a perceived path to financial relief.

❝ According to Moneyweb, for the 12 months to March 2025, combined advertising spend by gambling and sports betting brands in South Africa could have been as high as R2.6 billion

The gambling industry has spent massively to fuel demand. Walk through any South African airport or watch a sports broadcast and the saturation is notable. According to Moneyweb, for the 12 months to March 2025, combined advertising spend by gambling and sports betting brands in South Africa could have been as high as R2.6 billion, with three brands, namely Hollywoodbets, Betway and World Sports Betting accounting for nearly half. That R2.6 billion exceeds what traditional heavy-spending sectors like telecommunications invested in the same period.

“Gambling now ranks alongside medical aid and internet access as a standard monthly expense for South Africans. But unlike those essentials, the R75 billion flowing into the industry comes with alarming social costs and represents money diverted from more productive sectors of the economy,” concludes Eighty20.

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