Momentum Group Foundation has warned about gambling revenue increasing with more financially strained consumers turning to gambling.
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Momentum Group Foundation has warned about gambling revenue increasing with more financially strained consumers turning to gambling.
Salem Nyati, Consumer Financial Education Specialist at Momentum Group Foundation said that most South Africans aren’t gambling more because times are good, they’re gambling more because money is tight. “South Africa’s gambling industry generated a record R75 billion in gross gambling revenue in 2024/25, while the betting segment alone had already grown dramatically from R8.8 billion in 2019/20 to R23.7 billion by 2022/23. Concerningly, 39% of online punters say they are gambling more than they were a year ago according to Trade Intelligence research, while the National Responsible Gambling Programme (NRGP) recorded a 55% increase in people seeking help.”
Nyati added that, more concerningly, some consumers admit that they are now prioritising betting over essentials like groceries. “In an economy increasingly defined by rising food prices, mounting debt pressure, shrinking disposable income, and high unemployment – of which a large portion resides in the youth segment – online betting is increasingly being perceived as a shortcut to financial relief.”
Nyati said that the problem is not only the scale of online gambling; it’s also the mindset slowly forming around it – particularly among financially vulnerable consumers and younger South Africans increasingly exposed to betting culture online and among the adults in their lives. “And that is, that it’s glamorous, easy, and pays off fast. Social media is flooded with stories of overnight wins, “big hits,” and high-risk lifestyles. Casinos employ tactics to make wins seem even more alluring, with ringing bells and overtly luxurious surroundings.
“Betting apps are available 24 hours a day. Deposits happen instantly. And when it comes to online gambling, there is almost no friction left in the process – a quick dopamine-inducing game, a smartphone, and an “approve payment” tap on one’s banking app are now all it takes,” said Nyathi.
Nyathi added that what gets forgotten in that environment is that gambling platforms are not designed to create financially secure consumers; they are designed to keep people playing. “And the longer people chase losses, the worse financial decisions tend to become over time. Understanding the dangers does not mean people will stop gambling overnight; realistically, many won’t.”
Nyathi said that the moment gambling starts eating into essentials such as rent, transport money, groceries, school fees, or debit orders, it stops being entertainment and starts becoming financially dangerous, as betting should never become part of a household survival plan. “Whether it is credit cards, overdrafts, loans, or borrowed money from friends, family, or, debt-funded gambling often creates a destructive cycle where consumers gamble not because they are enjoying it, but because they feel trapped and desperate to recover their losses.”
Nyathi said that according to H2 Gambling Capital, approximately one in every six rands is being spent with offshore operators that are essentially beyond the reach of SA regulators, meaning they pay no local tax and are unlikely to be invested in any South African consumer protections. “There are reportedly more than 2,000 unlicensed offshore gambling platforms targeting South African consumers.”
Nyathi added that part of what makes gambling appealing to some is the adrenaline rush – the feeling that one clever move could dramatically change your financial position. “But there is a big difference between calculated risk and reckless risk, and for those drawn to the idea of making their money “work harder,” there are healthier and more sustainable ways to channel that risk appetite. This does not mean throwing your life savings into speculative investments or crypto trends overnight – rather, start small, stay realistic, and consult with a qualified professional, such as a financial adviser, who will partner with you to help you build and protect your financial dreams.”
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