Online gambling in South Africa has surged in recent years, leading to alarming rates of problem gambling, particularly among the youth. According to a study, nearly 39% of South Africans engage in gambling, with a significant portion being young individuals. This demographic is particularly vulnerable, with the rate of gambling addiction growing alongside an increase in unemployment and economic hardship. 

In 2023 alone, the gambling industry generated an estimated R23.7 billion in revenue, a stark rise from R8.8 billion in 2019/20. An increase in gambling-related problems, including financial instability and mental health issues, has accompanied this boom.

Unsurprisingly, the industry has invested heavily in marketing itself in sports and on television. In recent weeks, Betway replaced DStv as the title sponsor of the Premier Soccer League. Cricket South Africa recently announced Dafabet as its shirt sponsor, leading to social media jokes about what Hansie Cronje must be thinking about that particular deal. 

In response to these growing concerns, the Democratic Alliance has attempted to introduce new regulations through the Remote Gambling Bill. This legislation aims to curb the rise of online gambling by imposing stricter regulations on remote gambling operators. The DA’s efforts are seen as a necessary step towards addressing the lack of comprehensive regulation in the rapidly expanding online gambling sector, which has left many young South Africans unprotected against the risks of addiction.

Complicating the regulatory landscape is the position of the newly appointed Minister of Sports, Arts, and Culture, Gayton McKenzie, who advocates for legalising sports betting. McKenzie has argued that legalised sports betting could benefit the sports industry financially, stating, “We should embrace this and find ways to harness it to support our sports teams and events.” 

His stance highlights the tension between the potential economic benefits of a regulated gambling industry and the social risks associated with increased gambling opportunities.

Policymakers in South Africa face significant challenges in balancing the gambling industry’s economic benefits with the need to protect vulnerable populations. The industry’s growing influence within the government, bolstered by allies like McKenzie, complicates efforts to implement stricter regulations. As the debate continues, the future of online gambling regulation in South Africa remains uncertain, with policymakers needing to weigh the financial gains against the potential social costs.

The simple fact is online gambling needs to be regulated and monitored closely. It can’t continue to be a Wild West that nets billions for a few while destroying the lives of many forever.