South Africans grappling with financial hardship are increasingly resorting to gambling in vast numbers, with research indicating that up to half of social security grants allocated to younger demographics are expended on wagers, according to a study by Experian and Vault22. Unemployment and restricted credit access have compelled many to pursue alternative income streams, transforming gambling from mere leisure into an apparent lifeline.
Jaco van Jaarsveldt, head of commercial strategy and innovation at Experian, observed that participants in gambling display elevated financial strain compared to abstainers. Drawing from 55 million consumer profiles and 800,000 transactional entries from Vault22, the analysis unveils a stark association between betting and economic duress, as detailed in the Experian Africa Gambling Insights 2025 report.
One particularly vulnerable cohort—those barely affording essentials—has witnessed a sharp escalation in distress, dedicating up to forty per cent of gross earnings monthly to bets. Certain segments channel half their South African Social Security Agency disbursements into gambling, potentially undermining the government’s welfare framework for the impoverished.
Middle-income groups mirror this trend, allocating thirty-eight to fifty per cent of income to wagers—exceeding grocery expenditures by thirty per cent. Even wealthier strata commit ten to twelve per cent, albeit with greater restraint. This dossier merits scrutiny by policymakers, illuminating the dire circumstances prompting such coping mechanisms.
Prominent firms including Pick n Pay, Capitec, and Famous Brands have spotlighted gambling’s debilitating effect on consumer outlays. A nexus exists between joblessness and betting, with consumers enduring pressure despite 1.25 percentage point interest rate reductions and inflation steadying at 3.4 per cent.
Credit demand surpasses pre-pandemic highs, yet lenders remain cautious amid entrenched betting patterns. Consequently, individuals pivot to gambling or online trading for supplementary funds. National betting outlay reached R1.5 trillion last fiscal year—nearly twenty per cent of gross domestic product—surpassing combined allocations for education, social development, and health.
Statistics reveal gambling constitutes 1.6 per cent of household budgets and fifty-five per cent of recreation, sport, and culture spending, according to Statistics South Africa’s September Stats Biz. The National Gambling Board documented R74 billion siphoned annually, predominantly to platforms like Betway and Hollywoodbets, while endorsing a Supreme Court of Appeal verdict deeming casino-style offerings unlawful for Gauteng bookmakers—a stance it extends nationwide, as reported by MyBroadband.
Despite this, some operators like Hollywoodbets and Betway have signalled non-compliance, citing the ruling’s provincial scope. Gambling revenues have ballooned post-Covid, with gross yields expanding over twenty-five per cent annually, per Codera Analytics data. Online entities yield minimal employment or societal gains, contrary to their promotional narratives.
The Experian-Vault22 probe dissects behaviours by affluence tiers: the money-conscious majority (forty-two per cent) averages twenty monthly bets at R186; the laboured living segment (twenty-four per cent) twelve at R164; while affluent aspirational achievers and luxury livers wager R3,739 to R5,897 on eleven bets. Generation X (aged forty-five to sixty) has nearly doubled spending recently.
Online revenues now dominate sixty per cent of gambling intake. Van Jaarsveldt advocates education over prohibition to avert underground proliferation, stressing the house’s inevitable advantage. Unbridled expansion risks eroding household stability, necessitating regulatory reforms, literacy drives, and responsible practices for sustainable economic contributions, as argued by Anchor economist Casey Sprake in a recent briefing.
South Africa’s gambling surge, amid thirty-three per cent unemployment and R500 billion in household debt, has prompted parliamentary debates on advertising bans, with illegal platforms proliferating to over ninety, according to Trade Minister Parks Tau’s disclosures. Without intervention, this R75 billion industry could exacerbate inequality rather than alleviate distress.