GOOD Statement by Sarah Mabotsa, GOOD Tshwane Councillor:
Today, I joined the picket at the Department of Trade, Industry, and Competition to lobby for increased oversight and regulation of the online gambling industry. The reasons for the call for increased regulation are due to the rapidly escalating losses incurred by people, especially lower-income earners and the youth, arising from illegal online gambling. Better regulation of the industry can increase job creation, protect vulnerable members of society, enhance tax revenues, and support transformation.
Enhancing job creation
The value of the gambling industry is large – at R75 billion in 2024/25, according to the latest National Gambling Board’s annual report. Some components of this industry are very important job creators. For example, more than 10,000 people are directly employed in the gambling industry in Gauteng, which has a gross gambling revenue (GGR)of R13.5 billion. This is the largest number of people employed in the sector for any province.
The value of the gambling industry in the Western Cape Province, at R23 billion, is far higher than Gauteng’s R13 billion, yet in the Western Cape, the sector employs less than 4200 people. The Western Cape generates R10 billion more in revenue but creates 6,000 fewer jobs than Gauteng.
There are thus mechanisms and regulations required to limit profit and enhance job creation, which could be implemented to increase employment opportunities.
Protection from illegal online betting
It is the online betting industry – a sub-component of the gambling sector – which is particularly concerning. The online betting industry has shown a massive 590% growth within 5 years, increasing from R8.8 billion during the 2019/20 financial year to R52 billion in 2024/25. This component of the industry dwarf’s revenue from job-creating casinos (R17 billion), slot machines (R4.1 billion), and bingo (R1.7 billion).
Reports and studies show that the typical South African bettor is often unemployed or earning between R5,000 and R15,000 a month and is between the ages of 26 and 35, but even children as young as ten years old are being drawn into online gambling. This rapidly rising problem is thus predominantly affecting the youth. Money needed for food, housing, electricity, and education is being wasted on online gambling platforms.
I join the Congress of South African Trade Unions (COSATU), Rise Mzansi, and other civil society groups in their calls for increased regulation of this economic sector.
Gauteng residents are reminded that online gambling is illegal. The South African Bookmakers’ Association has stated that illegal online gambling is costing the economy more than R50 billion a year. As the majority of these online gambling sites are unlicensed, there is no accountability, taxes, or protection from exploitation. Money that could have funded food, jobs, and social investment is being siphoned off to overseas bank accounts.
I support the implementation of proposed regulations, as already adopted by countries such as Australia, the UK, and Finland, which have achieved a decline in illegal gambling traffic. Block the IP sites, insist on payment filtering to curb illegal transactions, and prosecute illegal operators, influencers, and affiliates who promote these illegal platforms online. As very young children are reportedly becoming involved in online gambling, I also appeal to parents to monitor and help guide our youth.
Enhancing transformation
My further concerns relate to the lack of transformation in some components of the industry. Whilst B-BBEE levels are generally good, averaging 1.7 for casinos (and in Gauteng the median B-BBEE level is 1), for Totalisator gambling companies, the average South African B-BBEE scores is just 4,5, with the Western Cape’s Kenilworth Racing (4Racing) scoring the worst of any company involved in the industry, with a level 8 B-BBEE being recorded for 2024/25.
The DA-run Western Cape is also the province where the greatest revenue (R23 billion of the national R75 billion) of gambling is generated, but with comparatively far lower job creation and very low B-BBEE transformation scores of companies involved. Gambling businessman Martin Moshal – the biggest individual political party donor in South Africa – has reportedly donated at least R103 million to political parties, with almost half (R45 million) going to the Democratic Alliance.
Economic sectors must contribute not only to our country’s growth but also to the social development of our people. Where this does not happen willingly, the government must step in to regulate and enforce these actions.
Through enhanced regulation and control measures, we can promote job creation, enable responsible gambling that protects vulnerable communities, enhance tax collection, and accelerate industry transformation.
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