Online Gambling in South Africa Reduces Spending on Groceries

On January 27, Trade Intelligence published a study examining the impact of the iGaming sector on retail in South Africa, based on a survey of over 700 players from various online gambling and interactive betting sites. Key findings highlighted by iGN include:

Growth of the Online Gambling Market

Data from the South African National Gambling Board show that approximately R1.5 trillion was wagered in the gambling industry in 2024–2025, nearly one-third more than the previous financial year. Most of this growth is coming from the online gambling segment.

The total South African gambling market turnover for 2024–2025 is estimated at around $94 billion, representing a 33% increase compared to the previous year.

Impact on Household Spending

Reduced Grocery Expenditure

The study found that groceries and essential household items are the main category from which players divert money to online gambling. On average, respondents selected 2.2 categories where they might otherwise spend money, with groceries ranking first and fast food or takeaways second.

Player Motivation

The primary reason for participating in online gambling is to make money, rather than for entertainment or leisure. Nearly two out of three players said this was a “definite” reason for their gambling activity.

About half of the players responded “it depends” when asked whether they generally win or lose, while most of the remaining half admitted they lose more often than they win. Additionally, 25% of players do not track how much they spend, win, or lose.

Consequences for Households

Risk to Household Budgets

The combination of these findings highlights the dangers of online gambling: players attempt to “earn” money to buy groceries while simultaneously putting their household’s ability to afford basic necessities at risk.

Popular Games and Platforms

Games such as Aviator, Starburst, and Sugar Rush drive traffic to platforms like Hollywoodbets, Easybet, and Yesplay. Interestingly, many players do not even consider themselves “gamblers.”

Regulatory Measures and Taxes

Proposed Tax on Winnings

The South African Treasury is considering introducing a 20% tax on players’ winnings to curb problem gambling and its negative impact on household finances. Whether this will reduce