The Congress of South African Trade Unions (Cosatu) has raised concern over the rapid rise of unregulated and illegal online gambling, warning that it is driving thousands of South Africans into poverty and despair.

Zululand Observer reports that Cosatu parliamentary co-ordinator Matthew Parks said gambling and betting were highly addictive and, when left unchecked, had trapped millions in a cycle of debt and hopelessness.

He expressed these sentiments during the recent National Assembly debate on the gambling crisis.

“South Africa has seen an explosive growth in online gambling and betting over the past few years. Many have lost everything. Others have resorted to suicide,” said Parks.

He said many online gambling platforms are operating illegally, with sports betting being a notable exception. The surge, Parks added, has been fuelled by unregulated online advertising and the ease of access to gambling platforms at any time, often with little age verification or oversight.

According to industry estimates, the gambling sector generated R1.14t in turnover in 2024, with South Africans spending an average of R4b per day. Reports further indicate that up to 83% of gamblers are now in debt as a result of their gambling habits.

Parks expressed concern over the growing number of social grant beneficiaries and National Student Financial Aid Scheme-funded students turning to gambling, saying these funds should be used to meet essential needs and support economic growth.

“There is space for responsible gambling and betting in society, but it must be well regulated, transparent and accountable,” he said.

While the National Gambling Act provides a framework for regulation, Cosatu believes it must be urgently strengthened to address the boom in online gambling and its advertising.

Rise Mzansi MP Makashule Gana, who serves on the Portfolio Committee on Trade, Industry and Competition, called for tighter regulation to protect vulnerable citizens.

“Gambling used to be a form of leisure, but not anymore. Today, we see many South Africans gambling with money they simply cannot afford to lose. Social grant recipients are gambling away funds meant to put food on their tables, and students are gambling away their National Student Financial Aid Scheme allowances, risking their education and dignity,” said Gana.

A recent National Gambling Board report showed a significant rise in gambling activity, with South Africans wagering over R1.5t during the 2024/25 financial year, up from R1.1t the previous year.

Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel.

Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal.