Online gambling in South Africa: figures on the rise

Online gambling in South Africa: figures on the rise
Online gambling in South Africa: figures on the rise. Image source: Pixabay

Statistics reveal that, after Egypt, South Africa is the second biggest market on the African continent when it comes to gambling, perhaps not surprising in a country where one in ten of the population is a gambler, spending an average of more than Rs 150 a month each.

And the industry continues to grow, both in terms of the 60 or so land-based South African Casinos which operate through the country, and online casinos.

Unfortunately there is a dark side to this growth, with mounting evidence that the number of people identified as problem gamblers – those who regularly bet and lose more than they can afford – has been on the rise since the Covid-19 lockdown.

Too many people are turning to online gambling to escape the harsh realities of their daily lives, with predictably negative consequences both for them, and their family and friends.

The Legal Situation

Historically, all forms of gambling were banned for a long time in South Africa, but, with the passing of the National Gambling act, physical gambling facilities began to open once again, open to both South African and foreign players.

Online gambling though is in a more ambiguous position, with an update to the country’s laws actually banning it. Certain online casinos do accept local South African players, although the prevailing legal advice is not to open an account,

Sports betting though is legal provided that the bookmaker is legal and holds the requisite licenses.

Having said that, it would be foolish to deny that many South Africans do bet online on all types of games, irrespective of the legality or not.

The Rise in Online Gambling

As elsewhere, one of the primary reasons for the growth of mobile gambling has been the investment by the government in the country’s communications infrastructure. High speed 3G and 4G coverage is now much more widespread in the country, meaning stable and reliable internet connections, even in rural areas.

There has also been a sharp rise in the number of South Africans who possess a smartphone. From less than 10 million people in 2014, that figure had increased to 22 million at the end of last year and is expected to increase to more than 26 million by the end of 2023. This growth, in part, is because smartphones have dropped in price in real terms, making them more affordable than ever.

These two developments have made online casinos much more accessible to the average man in the street.

In recent years, the South African economy has been on the rise, and, with more disposable income, people have tended to gamble more as well. Of course, this year’s economic progress has been drastically slowed by the global pandemic, but figures from elsewhere in the world, suggest that gaming is recession-resistant, and will continue to grow.

Not necessarily a good thing

This growth in online gambling is not necessarily a good thing, especially since the start of the pandemic and the government lockdowns. Sadly, too many people are turning to online casinos as a means of escaping what is happening in their daily lives, and those that were playing before are now spending more.

At the same time, campaigners cannot rule out a rise in illegal gambling activity, again partially in response to the privations of lockdown.

Like any addiction, gambling can become a dangerous and harmful cycle of dependence, which can threaten financial security, family relationships, and mental, physical, and mental health.

Those who believe that they have or may be developing a problem with gambling are advised to seek help from experts, which is available, usually free, and always confidential.