South Africans Spending Grocery Money on Online Gambling as Addiction Rises

A recent survey by Trade Intelligence has revealed a troubling trend among South Africans, who are increasingly redirecting funds from groceries and household essentials toward online gambling platforms. Conducted in late 2025, the survey gathered responses from 700 online gamblers who admitted to playing on a variety of gambling and interactive betting sites. Participants were provided with a list of ten categories where their gambling money might otherwise have been spent. Groceries, food, and household essentials emerged as the most common category by a significant margin, far ahead of other top choices such as fast food and discretionary purchases.

Contradictorily, nearly two in every three respondents reported that their motivation for gambling online was to win money in the hope of covering everyday expenses, rather than for excitement, entertainment, or escapism. Yet, almost half of those surveyed acknowledged that they lose more money than they win, and 25% admitted that they do not track how much they spend, win, or lose. “The combination of these two findings underscores the desperation inherent in online gambling,” said Nicola Allen, senior analyst at Trade Intelligence. “Players are trying to ‘make money’ to buy things like groceries, but they are simultaneously jeopardising their household’s ability to afford these basic essentials by gambling with grocery money.”

Data from the National Gambling Board indicates that approximately R1.5 trillion was wagered in South Africa’s gambling industry during the 2024/2025 financial year, representing nearly a third increase from the previous year. The majority of this expenditure was directed to online gambling platforms. “Interestingly, it is games like Aviator, Starburst, Sugar Rush, that are driving traffic to sites like Hollywoodbets, Easybet and Yesplay – players may not even consider themselves to be ‘gamblers’,” Allen added.

The impact of this spending has raised growing concern in South Africa, with the National Treasury considering a 20% tax on online gambling proceeds aimed at discouraging problem and pathological gambling and their adverse effects. Rise Mzansi Member of Parliament Makashule Gana told Newsday that Parliament is aware of the displacement effect resulting from online gambling addiction. “It’s no longer used as a form of entertainment. People think they can use online gambling to survive or to get out of poverty, but we know that the house always wins,” he said. “And for gambling houses, we know that it’s all about profit,” he added.

The R1.5 trillion figure comes from the National Gambling Board’s annual report for the financial year, presented to Parliament in October 2025. The bulk of this spending occurred in the betting industry, with South Africans wagering R1.1 trillion in bets over the year. This dwarfs casino turnover, which generated R293 billion, followed by slot machines, also known as limited payout machines, at R55 billion, and bingo at R28 billion.

The legality of online gambling in South Africa remains a grey area. A 2011 Supreme Court of Appeal ruling declared online gambling illegal. However, online sports betting is fully legal and represents the most commonly used form of online gambling. Legal lines blur when these licensed sports betting platforms offer “live” or “Vegas-style” games, which the National Gambling Board considers illegal. Operators argue that these are “fixed-odds betting events” that fall under their legal licence.

The Trade Intelligence survey findings mirror those of a National Gambling Board survey, which found that the primary reason for gambling among South Africans is the “chance to win large sums of money.” The second most cited reason, provided by 56% of respondents, was financial need, while another 14% reported gambling due to job loss.

A study by Nerilee Hing, Matthew Rockloff, and Matthew Browne, titled “A Bad Bet for Sports Fans: The Case for Ending the ‘Gambling’ of Sport”, also highlights how the gamblification of sports normalises betting among fans, including children. Although individuals under 18 are legally barred from online sports betting, the study argues that this normalization increases the likelihood that young people will gamble once they reach legal age.

“Would a tax on winnings curb spend on online gambling sites? Or would it just put further strain on household finances? This will no doubt be debated at length,” said Allen.

The survey underscores a growing concern that online gambling, intended by some as a way to make ends meet, is increasingly undermining South Africans’ ability to afford basic necessities, creating a cycle of financial risk and desperation.

By fLEXI tEAM