South Africa's gambling industry has grown rapidly, with turnover reaching R1.5 trillion in the 2024/25 financial year, despite high unemployment and financial strain on households. This expansion, driven largely by online betting, reflects coping mechanisms rather than economic confidence. Problem gambling rates have risen sharply, straining mental health services.
The gambling sector in South Africa experienced significant growth in the 2024/25 financial year, with total turnover climbing 31.3% to R1.5 trillion from R1.14 trillion the previous year. Gross gambling revenue rose 26.2% to R75 billion, outpacing the broader economy. Betting now dominates, comprising 70% of gross revenue at R52.3 billion, up from R5.2 billion in 2020/21, with online platforms accounting for 85.5% of betting activity after a 550% increase over four years. Casinos, by contrast, have declined 4.1% annually.
This boom occurs against a backdrop of economic distress. Unemployment stands at 31.9% in the third quarter of 2025, with youth rates at 58.5%; 34% of young people are not in employment, education, or training, and 58.7% of unemployed youth have never held a job. Surveys indicate 56% of bettors gamble out of financial need, and 40-41% of those earning R8,000 to R15,000 monthly use it for expenses or debt management, up from 36% last year. Lower-income households allocate up to 40% of income to gambling, making it the 12th largest household expense nationally at 1.6% of spending.
Problem gambling has surged, from 6% in 2017 to 31% in 2023, affecting nearly one in three gamblers and roughly two million people. Annual adult participation doubled to 65.7%. Helpline calls to the National Responsible Gambling Foundation jumped 623% to 1.1 million, with treatment referrals up 55% to 4,166, particularly among 18- to 35-year-olds. Callers report financial ruin (32%), inability to stop (40%), and co-occurring issues like depression or substance abuse.
The sector generated R5.8 billion in taxes and supported 33,169 direct jobs, but critics argue it taxes desperation from vulnerable groups reliant on social grants of R370-390 monthly. Advertising hit R2.6 billion, led by Hollywoodbets (R775 million). Outdated laws from 2004 leave regulation fragmented, with a proposed 20% online tax aiming for R10 billion in revenue but risking offshore shifts.
This trend, accelerated by the pandemic, signals deeper economic exclusion rather than prosperity.
