Online sports betting boom deepens financial strain on South Africans – BER

A new report by the Bureau for Economic Research (BER) released on Monday has warned that while online sports betting remains highly profitable, it is having a growing and troubling impact on consumer finances across South Africa.

The BER found that online betting has become the “national norm,” driven by the convenience of mobile apps and online platforms.

“This has fuelled record gambling turnover - R1.5trln was wagered in 2024/2025 (up from R1.1 trillion the previous year) – 0.8% of SA’s GDP,” the report stated.

“The concern is that South Africans are betting money meant for food and education, and getting deeper into debt, in an online frenzy that has swept this and many other parts of the world.”

However, the BER clarified that while the overall figures appear alarming, most of the R1.5trln turnover was not new money.

“Gambling turnover of R1.5trln constituted an eyewatering 31% of total consumer spending last year, but 95% of this money was consumers’ recycled winnings that had been bet again. Gambling operators took home only 5% of this as Gross Gambling Revenue (GGR).”

That 5%, however, still represents a surge in real profits. GGR rose from R52.3 billion to R75 billion over the past year — a 26.2% increase, following a 25.7% jump the year before.

“This is almost entirely due to the explosion of (mostly online) betting which, since 2020, has taken over from casinos as the dominant form of gambling in SA. As a result, GGR has almost doubled its share of total consumer spending from 0.9% in 2022 to 1.5% in the year ending March 2025.”

Despite this rise, BER noted that South Africans still spend proportionately more on beer than on gambling, according to Statistics SA data. Yet, the composition of spending is shifting — gambling now makes up 26.7% of all spending on recreation and culture, compared to 12.3% before the pandemic, even as that broader spending category has declined overall.

The report warned that gambling’s social toll is rising. The 2025 Old Mutual Savings and Investment Monitor found that 40% of working South Africans gamble frequently to cover expenses or pay off debt, up from 36% a year earlier.

One in five admitted having to borrow money, use credit, or sell assets to fund gambling, with the habit particularly common among lower-income earners.

Claire Heckrath, CEO of online research firm infoQuest, said surveys show that while overall gambling participation has dipped slightly, digital betting continues to expand, particularly among younger adults.

“A follow-up in April 2025 tracked key shifts over time, while also uncovering fresh insights into the evolving gambling landscape. Approximately 300 gamblers were interviewed in each wave of the study,” Heckrath said.

“Overall, gambling participation has seen a slight year-on-year dip – but the digital tables are turning. The National Lottery remains South Africa’s most popular gambling activity, but online gaming/betting and sports betting are rapidly gaining traction, particularly among younger gamblers aged 18–34.”

Professor David Spurrett, from the University of KwaZulu-Natal, cautioned that 24/7 access to betting via mobile phones makes gambling harder to control.

“It is easier to avoid going into or near a casino or betting shop than to do without your phone. Expansions in gambling access are often associated with increases in gambling-related harms,” he said.

“The prevalence of gambling advertising and sponsorship in sport is contributing to wide awareness of the possibility of betting on sports.”

Dr James Burger, from the South African Society of Psychiatrists, warned that gambling addiction is contributing to rising mental health challenges, including depression, substance abuse, domestic violence, and even suicide.

“In its 2024/25 annual report, the National Gambling Board (NGB) highlighted a 623% increase in calls to the National Responsible Gambling Programme (NRGP) toll-free helpline, increasing from 140,000 to over 1 million year-on-year,” Burger said.

“The report also noted an increase in problem gambling to 31%, up from less than 6% in 2017, and a 55% increase in referrals for counselling and treatment. Referrals for treatment amongst youth aged 18 to 35 shot up from 787 to 2034 in the past year.”

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