Africa’s online gambling growth is facing closer scrutiny as South African businesses and policymakers warn that betting spend is cutting into household budgets.
Gross gaming revenue across Africa is projected to reach $13.5bn in 2026, according to H2 Gambling Capital, more than double its 2023 level. Growth has been supported by smartphone use, mobile payments and weaker regulation in parts of the continent.
South Africa has become a key market in that expansion. Absa Bank data shows betting spend has increased by around 50% each year over the past three years, even as wider consumer spending has softened.
Shoprite Holdings CEO Pieter Engelbrecht told Bloomberg: “People are spending money in a black hole that could have spent on food.”
MTN Group also cited online gambling in its 2025 annual report, stating that prepaid mobile growth in South Africa had been affected by “the growing share of disposable income that is being spent on online gambling.”
The trend is raising concerns for lenders. Standard Bank research shared with Bloomberg found the average share of income spent on gambling doubled to 2% between 2021 and 2025.
Around 7% of people spend more than 100% of their income on gambling, relying on credit or other funds.
Absa CEO Kenny Fihla said gambling trends are a “huge predictor” of loan delinquency.
Fihla added: “This is a massive problem that quite frankly, we’re worried about.”
Operators continue to expand in the market. Super Group, which owns Betway and Spin, reported 27% revenue growth in Africa in 2025, largely driven by South Africa. Virgin Bet entered the country in March, while sports betting licenses have risen 40% since the 2020/21 financial year.
South Africa’s Treasury has opened consultation on an online gambling tax, citing social costs including financial stress, family hardship and mental health impacts.
Sun International CEO Ulrik Bengtsson said licensed, tax-paying operators should be viewed as part of consumer protection, contrasting them with offshore platforms targeting South Africans outside local regulation.
The debate around gambling taxation has intensified across Africa in recent months, with South Africa, Malawi, Zimbabwe and Senegal all introducing or proposing new levies on operators and player winnings as governments seek additional revenue and tighter controls on online betting activity.
South Africa’s gambling sector now represents 54.5% of all leisure-related consumer spending, according to the country’s statistics agency
