The National Gambling Board (NGB) has warned against the temptation to gamble in the hopes of a financial windfall.
January often puts financial strain on households dealing with the aftermath of festive season overspending. Adding to the strain are rising petrol prices, a weak rand and fluctuating global oil prices, all of which drive up the cost of living.
According to Caroline Kongwa, accounting authority at the NGB, gambling should never be considered a source of income or a way to make ends meet.
“This mindset is fraught with danger, as gambling is never a ‘sure thing’ but rather a risk taken with money that consumers can often ill afford to lose,” she said.
South Africans face significant economic challenges as 2025 unfolds. Petrol prices are set to increase by up to 81c a litre in February, while diesel prices are expected to rise by 89c. The rand, which traded at R17.60/$ in December, has weakened to R19.23/$ by mid-January, and the cost of the average household food basket continues its upward trend.
The Pietermaritzburg Economic Justice & Dignity group has reported that the cost of the average household food basket rose by R22.34 from R5,361.04 in November 2024 to R5,383.38 in December 2024. The cost increased by R145.18 from R5,238.20 in December 2023 to R5,383.38 in December 2024.
It is important that South Africans realise that gambling is a leisure pursuit similar to going to the movies or dining out.
— Caroline Kongwa, accounting authority at the NGB
The NGB said January is financially challenging as early December pay cheques are quickly spent during the holidays, leaving households short of funds. This has raised concerns that desperate individuals may turn to gambling in the hope of making quick money, often borrowing to sustain the habit, which worsens their financial difficulties.
“It is important that South Africans realise that gambling is a leisure pursuit similar to going to the movies or dining out. Healthy financial management is key and money for gambling as a form of entertainment should only be set aside from a household budget once all bills, financial commitments and basic needs have been met,” said Kongwa.
Despite these risks, South Africa's gambling industry continues to grow. In the 2023/24 financial year, legal bets totalled R1.1-trillion, a 40% increase from the previous year. Two-thirds of these bets were placed on horse racing and sports betting.
According to Statista, revenue in South Africa's online gambling market is projected to reach $431m (R8.15bn) in 2025, with a compound annual growth rate of 4.71% from 2025 to 2029. By 2029, the market is expected to have 1.5-million users.
The NGB urged individuals struggling with gambling addiction to seek help, despite the stigma associated with the issue. Addiction can have severe financial and emotional consequences for gamblers and their families, she said.
“When gambling behaviour spins out of control, the habit can start affecting the financial and mental wellbeing of the gambler and his/her family. The only recourse is for the person to admit to their problem and seek help. Unfortunately, the social stigma of addiction as well as shame and embarrassment on the part of the gambler often stops them from accessing treatment.”
Capitec, South Africa's largest bank by customer numbers last year, said the surge in sports betting is something the country has to have a conversation about.
The lender, which has about 23-million clients, said based on its data, sports betting had taken root in South Africa, with more people looking to lay their hands on extra money.
Data from the National Gambling Board shows sports betting in 2022/23 accounted for more than half of all betting activities in South Africa, up from 10% in 2010.
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