The proliferation of online gambling has dire consequences

In a response to questions raised in a parliamentary committee meeting recently, Police Minister Senzo Mchunu, who is currently on special leave, stated there had been 36 illegal online gambling cases that had been reported to the police over the past five years.

The online gambling industry made profits amounting to R59,3 billion, with a trillion worth of wagers recorded last year. This represents the highest record of profits made, indicating an increase in the prevalence of gambling in South Africa. This is largely attributed to the boom in online betting platforms and the increasing presence of gambling adverts in public spaces and on social media.

The growth of smartphone proliferation in the market means younger audiences are connected to the internet and remain exposed to different forms of online harm. In South Africa, sports betting, particularly, has attracted younger online audiences.

Research by an organisation called InfoQuest revealed that online gaming, sports betting and online slot machines are popular favourites among age groups between 18-34 years old.  This manner of accessibility means that previous gambling trends, which were situated in casinos, have moved online, making gambling available at the click of a button.

It is important to note that online gambling in South Africa is illegal except for sports betting, usually limited to sports events and horse racing. Forms of gambling which are legal include casinos, bingo, limited payout machines, and wagering.

The current piece of legislation, which regulates gambling, has not been updated to account for the proliferation of other forms of online gambling, which have seen an upsurge in the last few years. This means vulnerable audiences, such as children under the age of 18, are constantly bombarded with gambling adverts on social media.

While the National Gambling Act outlines measures to be undertaken when operators and users are found to contravene the law, gambling which occurs in designated areas is much easier to control, making online gambling relatively harder to control as the online space is much more complex. 

The complex nature of online gambling is seen in how gambling operators are using loopholes to market sports betting on online platforms, since sports betting advertising is legal. This is evidenced in the thousands of adverts one comes across on social media platforms such as X (formerly Twitter) and the use of paid influencers promoting different forms of gambling on their profiles.

Through research done by the Centre for Analytics and Behavioural Change, 51 profiles that were analysed contained links and posts mentioning Easybet, an online gambling operator. While gambling advertising remains legal, the likelihood of advertising on platforms such as X reaching vulnerable audiences is high.

These adverts are not limited to social media, but television, radio, and public spaces alike. There has been a noticeable increase in gambling advertising in areas previously dominated by alcohol and fast food companies. This presents a concerning trend.

While the National Gambling Act was instituted in 2004, and amendments to the Act followed in 2008, much less progress has been made on regulating the ever-advancing gambling space. The last set of amendments made was through the National Gambling Amendment Bill introduced in 2018, which was later rejected by the National Council of Provinces (NCOP) in 2021 and referred to the Parliament's Mediation Committee.

Since then and over the last 2 years, there have been growing calls for the regulation of online gambling. Rising statistics on the uptick of gambling and said consequences have been brought to the fore. As a result, the  Remote Gambling Bill was introduced in parliament in 2022  with efforts to regulate the surge of online gambling.

The bill, which sat before parliament for about 3 years, unfortunately, lapsed as a result of the dissolution of the 6th administration and was only revived late last year. In recent months, political parties such as RiseMzansi have also expressed concern over the surge of online gambling and advertising, which poses different socioeconomic challenges.

In a series of questions directed to the current Minister of Trade, Industry and Competition (DTIC) on various issues of concern regarding the consequences of the rise in the unmitigated exposure to gambling, DTIC, the department responsible for ensuring that gambling practices do not pose any harm, and operations are within the ambits of current regulatory frameworks, acknowledged that most operators have been in violation of current legislation on advertising.

It was emphasised that gambling operators fail to highlight the addictive nature of gambling and its consequences, and that advertising to minors is completely unacceptable.  

These regulatory issues underscore a complex system in which various departments must collaborate to regulate and monitor the industry against harmful practices. DTIC also works with organisations such as the National Gambling Board and the National Gambling Policy Council, which sit at the important nexus of both protecting patrons and ensuring policy is updated to keep up with emerging gambling trends; however, both these entities seem to be insufficiently attending to this looming crisis. The Gambling Policy Council last met in 2018.

South Africa is currently plagued with a massive youth unemployment crisis, about 45.5% of those between 18-35 are without formal employment.

Age groups above 35 are also reporting discriminatory practices hindering them from acquiring employment. It is not rare to find 30-year-olds who have never been formally employed; that is how dire the unemployment crisis is.

The rise in online gambling is situated within this context, where the majority of those without economic opportunities are lured to betting as a means to make money and escape unbeatable socioeconomic conditions driven by the lack of redress in terms of economic inequality. 

The government has to heed the call to regulate online gambling as the plateau of this phenomenon will send vulnerable communities to further destitution, financial crises and a decline in mental and physical health. Already, community organisations such as Winners Without Gambling International and activists are signalling a stark reality as they try to remedy the consequences of problem gambling.

They report an increase in NSFAS recipients seeking rehabilitation after gambling their allowances on platforms such as Betway. They are also seeing a rise in gambling by women. These realities have far-reaching consequences, especially if the government continues to allow the mass profiteering by the gambling industry at the expense of vulnerable communities. 

To mitigate the harmful consequences of problem gambling, this phenomenon is characterised by excessive gambling leading to impacted personal relationships, finances and declining physical and mental health. The government has to move urgently to implement a sound Bill that regulates online gambling. This includes strengthening the advertising regulatory framework to minimise the loopholes that these operators are taking advantage of.

Beyond this, funds have to be allocated to support organisations and fund treatment programmes that are already working to mitigate gambling addiction with limited resources. 

The National Gambling Board, which functions as an oversight body, cannot fully perform its mandated functions, such as ensuring the evaluation of gambling licenses and overseeing the gambling industry as a whole.

This oversight body has been without board members for over 10 years. This signals the lack of urgency by the government to ensure this sector is regulated accordingly. Now more than ever, concerted effort from different stakeholders is needed to shield vulnerable communities from the rising scourge of gambling.

Thabisile Miya is a member of the Activate Change Drivers Writers Hub Master's candidate in the field of governance and public policy at the University of the Witwatersrand.