Online gambling drains grocery money as MP warns of social fallout

South Africans are increasingly spending money meant for food and groceries on online gambling, with the trend hollowing out household budgets and deepening poverty.

The warning comes amid figures suggesting as much as R1.5 trillion was wagered in a single financial year, while returns to gamblers amounted to only a fraction of that.

Rising online betting, especially on sport, is no longer a leisure activity, but a desperate attempt by struggling households to escape high living costs, MPs have heard.

‘It has stopped being entertainment’

Rise Mzansi Member of Parliament Makashule Gana says gambling has shifted from occasional entertainment to a coping mechanism for poverty.

“It has stopped being entertainment. People are gambling to escape poverty and the high cost of living. While a few may win, the majority lose,” he said.

Gana says spending meant for food, transport and other necessities is being displaced by betting, with addiction adding pressure on families, workplaces and the public health system.

Call for tougher regulation

Gana argues that ‘harmful goods’ such as gambling should be regulated and taxed more aggressively, similar to alcohol and tobacco.

He wants limits on gambling advertising exposure, a national online gambling tax, and a crackdown on unlicensed offshore operators masquerading as South African companies.

“These companies are not here to make South Africans rich. They are here to extract and maximise profit,” he said.

Credit cards, influencers and ‘soft locks’

Among the proposals is a ban on gambling with credit cards and overdrafts, tighter cooperation with banks, and outlawing the use of social media influencers to lure users.

Gana also suggested mandatory ‘soft locks’ that temporarily block gamblers after heavy losses.

“If you’ve gambled away your salary, the system should lock you out. Go sleep on it and think again,” he said.

Free choice or state responsibility?

Some callers questioned whether the government should intervene at all, arguing that adults should be free to spend their money as they choose.

But Gana insists addiction ultimately becomes a state problem.

“When people gamble their social grants or student funding, they come back to the state for help. That’s why regulation is necessary,” he said.

He warned that unchecked gambling addiction can fuel violence, job losses and mental health crises, with consequences far beyond individual choice.

For more details, listen to Gana using the audio player below: