Gambling takes its toll on KZN's vulnerable

AS gambling tightens its grip on the KwaZulu-Natal's gambling population, there are growing calls for more stringent regulations, especially for online gaming.

Gamblers Anonymous in KwaZulu-Natal has urged the government to take lessons from countries that do not allow online gambling. However, some members of the legislature argue that gambling is an economic activity and should be regulated rather than banned.

The discussion on this matter was reignited last week when members of the Economic Development Portfolio Committee in the provincial legislature expressed concern about the impact of gambling on the province's residents. The committee met with the KwaZulu-Natal Economic Regulatory Authority (KZNERA) to address this issue and several others.

The KZNERA revealed that it had generated close to R700 million from gambling activities over the past year. While committee members appreciate the revenue generated, they are extremely worried about the negative impact of gambling on the health of gamblers. They noted that ten individuals now require treatment as a result of their gambling activities.

The presentation from the board indicated that in the 2024-2025 financial year, the gambling industry generated R730 million in taxes. Of this amount, R689 million accrued to the provincial revenue fund, while R41 million was allocated for distribution to beneficiaries. It was reported that by the end of July, R236 million had been generated, with R223 million going to the provincial revenue fund and R13 million allocated for distribution.

The board acknowledged that the issue of online gambling presents a significant challenge, but noted that it is complicated by the fact that 15,000 jobs have been created through its growth.

Mafika Mndebele, chairperson of the committee, highlighted numerous issues regarding the gaming industry, including the lack of transformation.

"I believe the industry is still lagging; the transformation is low, and in the gambling sector, the reality is that profit margins are too high. We need to address this. While we may appreciate the R730 million generated, we must consider how it destroys families and how individuals become addicted to gambling without receiving counselling and support," said Mndebele.

He emphasised the need for a follow-up meeting with the board to receive a detailed briefing on the impact of gambling on the population. "We need a follow-up meeting in that regard," he added.

Committee member Hannah Lidgett called for gambling to be properly regulated rather than prohibited.

“Prohibiting gambling or poorly regulating it is likely to lead to illegal gambling outlets, loss of tax revenue, and exploitation of vulnerable individuals. Proper regulation means gambling contributes to the economy (jobs, provincial revenues, tourism) while ensuring consumer protection."

Merlin Rangasami of Gamblers Anonymous in Durban described the situation as increasingly dire.

"The people that come to us most of the time are totally financially broke. Compulsive gambling has affected everything they have; they have gambled away everything they can and can no longer obtain money from banks. They are often compelled by their families to seek help."

He noted that the relapse rate is very high. "For instance, for every 100 people that join, only six stay through the course," he said.

The situation is particularly concerning due to online gambling. "In the past, you needed to get into your car and go to a casino to gamble, but because of online gambling, that is no longer the case. You can gamble all your money while seated in the toilet."

Rangasami added that many individuals begin gambling in an attempt to supplement their income, unaware that they are creating an even bigger problem. He also mentioned that underage children are gambling.

"There are security checks on these gambling websites, but I do not know how effective they are. We have heard horror stories where underage children are registering accounts under their parents' or siblings' names."

He suggested that the government should consider restricting online gambling, noting that other countries without it are performing better in this area.