Billions of Rands intended for food, school fees, rent, and other essentials are being diverted into online wagers that players hope will see them hit the big win – isomething that almost never happens, and which leaves households increasingly financially stressed.

A new report by the Solidarity Research Institute warns that the growth of online gambling is changing household spending patterns, while problem gambling is damaging relationships, undermining financial security, and contributing significantly to declining family wellbeing.

The report, Online Gambling in South Africa, says the financial scale of this industry is substantial. During the 2024/25 financial year, South Africans wagered approximately R1.5 trillion across the gambling industry, with almost three-quarters of that amount bet online. After payouts to players were deducted, gambling operators retained R74.5 billion.

The report cautions that the R1.5 trillion includes monies wagered repeatedly, meaning it should not be interpreted as the amount lost by gamblers. Nevertheless, online gambling grew by 390% between 2021 and 2025, demonstrating the increasing tempo of the spend.

Household spending figures also illustrate the scale of the industry. According to the report’s analysis of Statistics South Africa data, gambling accounted for R191.4 billion, or 34.4%, of household spending on services in 2023. Only healthcare services attracted more expenditure. Gambling spending was three times the amount spent on education and ten times that spent on other forms of entertainment.

Statistically speaking, South Africans were more likely to be pulling the virtual levers on a digital one-armed bandit than on taking their children to a zoo or movie.

Gambling is also competing with the everyday needs of households.

Drawing on National Treasury data, the report links problem gambling to reduced productivity, family difficulties, and criminal activity. It also identifies stress, damaged relationships, domestic violence, and mental health problems – in extreme cases, even suicide – among the potential consequences.

Preliminary research from the National Gambling Board indicates that some gamblers are taking out reckless loans and using social grants to finance their betting. This needs to be understood both as personal psychological responses to gambling, and the difficulties of the existing economic context in South Africa.

The report says: “The appeal of online gambling therefore often stems from households grasping at straws to make ends meet. In at least 80% of cases, this will not work.”

That vulnerability is compounded by the accessibility of online platforms, which allow people to place bets on their phones at almost any time. The report cites international research suggesting online gambling is two to four times more likely to lead to problem gambling than other forms of gambling.

It also challenges the notion that betting can be a dependable way to supplement household income. Citing research from Australia, the report says only 1.8% of gamblers studied made a profit, while other international studies have found similarly low proportions of winning players.

“By presenting gambling in many communities as a way to make money quickly, high-risk behaviour that can have devastating consequences is being normalised,” the report says.

The industry’s expansion, meanwhile, has been accompanied by a proliferation of advertising across television, sporting events, billboards, and digital platforms, making gambling increasingly difficult to avoid.

The report argues that South Africa’s regulatory framework has failed to keep pace with the industry. Although online sports betting is legally subject to licensing requirements, online casino games remain illegal. The report says such games continue to be offered and advertised, despite the prohibition.

It recommends stricter enforcement of existing laws against illegal online casinos, action against those advertising prohibited gambling activities, and limits on advertising for legal betting. The government should also consider prohibiting sports stars from appearing in gambling advertisements, given their influence on younger audiences.

The report further argues that a gambling tax would be effective only if accompanied by stronger regulatory oversight and measures to prevent foreign operators from continuing to serve South African customers outside the regulatory framework.

Finally, it calls for public education about the actual likelihood of making money through gambling, rather than allowing betting to be promoted as a quick route out of financial hardship. Ultimately, when household money is lost, families are left to absorb the financial and emotional damage.

The Common Sense has written here on the issue of gambling in South Africa.