The money lost during play points to a sustained erosion of income, economicaffordability and financial inclusion among active gamblers.
Image: Supplied
The online gambling landscape in South Africa has drastically changed overthe past five years.
As the leader of one of South Africa's responsibleshort-term credit providers and CEO of FASTA, I have watched with mounting concern as more people gamble their income away in the vain hope of makingit through the month.
It is our view that gambling is no longer a harmless recreational activity; it has become a mainstream and highly saturated economic crisis.
The money lost during play points to a sustained erosion of income, economic affordability and financial inclusion among active gamblers.
The total value of bets placed in South Africa, according to the National Gambling Board (NGB), reached approximately R1.5 trillion for the 2024/2025 financial year.
This is a substantial increase of over 31% from the previousyear.
The 'Betting to Break Even' phenomenon
Fuelled by increased smartphone penetration, gamified digital accessibilityand aggressive advertising, online betting has surged.
Millions of South Africans are slowly being left more vulnerable to economic exclusion, driven by the rising attraction of hope within online gambling.
Yet aggressive gambling ad campaigns celebrating millionaire winnershighlight the rare success story.
Online platforms comprised of 60.5% of all gross gambling revenue for the2024/25 financial year across all provinces, according to the latestpublished report by the NBG.
To add further concern, economic and household findings from a 2025 Statistics South Africa report highlighted categories of distressedhouseholds spending up to 55% of their gross disposable monthly income ononline betting, reframed as "entertainment".
The National Treasury noted this increased risk of gambling addiction andassociated social harms, prompting them to publish the draft national onlinegambling tax discussion paper in November 2025.
In response to the latest data published by the NGB, the South African National Treasury proposed a 20% online gambling tax on an alreadyvulnerable segment in a bid to decrease the risk of gambling addiction.
What does this mean for the South African household already under the grip ofgamified gambling?
FASTA's review of recent transactional data of its customers paints the samepicture.
This data points to a sharp increase in gambling spend, losses, andfrequency. A significant concern is the increase in gambling losses amongthis group.
For the average gambler, the frequency and intensity of play arereaching unsustainable levels. What we're seeing isn't just a rise in thenumber of gamblers, but a steady increase in both spending per person andthe frequency of play.
In August 2025, the average monthly gambling loss accounted for 24.3% of the players' salaries.
In certain cases, gambling losses wager more than half oftheir monthly earnings.
Banks are reporting similar trends.
What is more alarming is that creditcards are emerging as the preferred payment method for online gambling.
Absarecently reported that online gambling's share of total credit card spendrose from 26% in 2022 to 58% in 2024.
This also came through in an annual survey undertaken by Old Mutual Savingsand Investment Monitor, revealing that 36% of their respondents who gamblesaid they gamble to pay off their debts and to cover their expenses.
Thisfigure climbs to 41% for those earning R8 000 to R15 000 per month.
This trend describes a growing segment of the population that is no longergambling for leisure but as a desperate and deeply impaired strategy tosupplement a household budget broken by inflation.
This has realimplications for household cash flow and financial resilience.
Of our 7,700 credit-active consumers surveyed, nearly 74% of respondents describe their monthly cost of living as higher than a year ago, with 31.8%saying it is 'significantly higher'.
This fundamental shift has made it harder to regulate and leaves consumerswith far less protection and a significant reduction in "borrowing power".
Our (FASTA) data indicates that prior to October 2023, average net gamblingoutflows among customers were approximately R50 per month.
By October 2025,this had increased materially to around R800 per month in net outflows.
Access to credit is often a gateway to economic freedom. It enables homeownership, small business creation, asset building, and the ability to buildintergenerational wealth.
While a weekly bet of R200 may appear modest, it equates to roughly R800 per month in reduced disposable income. From an affordability perspective, thatR800 is treated as a recurring expense.
Depending on interest rates and loantenor, this could reduce a qualifying home loan amount by well over R100,000.
In other words, the losses incurred in online gambling directly impact aconsumer's ability to access credit which fuels economic growth across theglobe.
This shows how serious the true financial predicament of SouthAfricans is right now.
The escalating cost of living, with salaries notmatching inflation, is trapping millions of citizens in a financialstronghold to subsidise their earnings.
While the National Treasury remains focused on the proposed online gamblingtax, I would argue that the conversation must move beyond mere revenuecollection.
I agree wholeheartedly that South Africa must confront this "taxation ofdesperation". I just don't think this is tackling the heart of the issue.
As the nation looks at the goals set out in SONA 2026, I would stronglyadvocate for a ban on gambling altogether.
While the gambling industry will point to the creation of direct and indirect jobs, the social and economiccosts now far outweigh the tax revenue of nearly R6bn.
When President Cyril Ramaphosa delivered his State of the Nation Address(SONA) on Thursday 12th February, he outlined a path for economic recoveryand social stability for the country.
Considering the clear emphasis oneconomic recovery, job creation and easing the cost of living, I wouldstrongly advocate for a far more decisive stance on gambling.
If we are serious about protecting disposable income and restoring realeconomic mobility, then this shadow pandemic must form part of that nationalconversation.
Gambling is quietly eroding affordability, increasingfinancial vulnerability and undermining the very economic freedom that SONA seeks to advance.
Kevin Hurwitz is the founder and CEO of FASTA.
Kevin Hurwitz is the founder and CEO of FASTA.
Image: Supplied.
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