The Credit Association of South Africa (CASA) has warned consumers against using credit or money meant for household essentials to gamble, as new research from the Solidarity Research Institute (SRI) highlights the scale of online gambling in South Africa and its potential impact on household finances.
According to the SRI report, Online Gambling in South Africa, online gambling grew by 390% between 2021 and 2025, driven in part by increased accessibility through mobile phones and widespread advertising.
“Never use funds to gamble that are designated for necessities like rent, food, transport, or utility bills,” warns Leonie van Pletzen, CEO of CASA. “Avoid using credit cards, loans, or borrow from friends and family to fund gambling, as it increases the likelihood of long-term debt, and severe financial distress.”
“As financial pressure on South African households continues to mount, consumers are being forced into finding alternative ways to pay the bills, or service their existing debt,” states van Pletzen. “Many are turning to online gambling, as it is portrayed as an opportunity to earn extra income.”
A common misconception is that placing larger bets with borrowed money offers a quick way to repay existing debt or achieve financial freedom. Van Pletzen warns that the approach can leave consumers in a worse financial position.
“Using credit to gamble creates a dangerous cycle,” she says. “When people use money they do not have in an attempt to recoup their losses, they risk accumulating high-interest debt as a result.”
How gambling can affect financial standing
Irresponsible gambling does not directly affect a consumer’s credit score. However, the financial consequences can damage a person’s credit record and longer-term financial standing if gambling losses lead to missed repayments or defaults.
“When using money you don’t have, or relying on credit cards or loans to fund gambling, it may lead to the inability to make on-time repayments,” explains van Pletzen. “Default payments are reported to credit bureaus, which ultimately affects your credit history.”
“Chasing losses with borrowed money rapidly multiplies debt, and may result in damage to your credit score,” she says. “This can also lead to potential legal or financial consequences.”
“Applying for new credit cards, personal loans, or alternative lines of credit to cover losses can also result in hard enquiries on your credit report, which can temporarily lower your score,” she adds.
CASA identifies two key risks associated with using credit to gamble:
- Escalating debt cycles: Chasing losses with borrowed money can increase debt, resulting in missed bill payments, a damaged credit record and potential legal or financial consequences.
- Increased risk of gambling harm: CASA points to a strong correlation between gambling with credit and the onset of problem gambling or gambling disorder.
“The significant increase in online gambling is deeply concerning, as it means that more ordinary South Africans are losing their hard-earned money,” says van Pletzen. “Households are already struggling to keep up with rising costs and inflation, and when using credit to gamble, their families bear the consequences.”
The scale of online gambling in South Africa
The SRI report, authored by economic researcher Theuns du Buisson, places the growth of online gambling in a broader economic and social context. In its press release, Solidarity describes an industry that is flourishing while households face mounting financial pressure.
According to the report, online gambling in South Africa grew by 390% between 2021 and 2025, driven in part by the accessibility of mobile phones and the volume of gambling advertising.
In the 2024/25 financial year, approximately R1.5 trillion was wagered across the entire gambling industry, with nearly three-quarters of this taking place online. The report cautions that the figure includes repeated wagers using the same funds. Someone who wagers R100, wins R120 and bets the winnings again, for example, contributes R220 to total wagers, despite initially putting in only R100.
Gambling operators retained R74.5 billion in gross gambling revenue after paying out winnings, according to the report.
Du Buisson said the figures reveal a problem that goes beyond the sums involved.
“We are talking about an industry that is growing at an astonishing rate, but the cost involved cannot be measured merely in rands and cents.
“Behind these figures are ordinary South Africans losing their hard-earned money, households already struggling to keep their heads above water, and families who have to bear the consequences.
“The gambling industry wins all the way, at the expense of South African families. This is the reality revealed by this report, and it is one for which we need immediate answers,” he said.
Statistics South Africa figures cited in the report provide another perspective on gambling’s place in the economy. In 2023, gambling and betting accounted for R191.4bn, or 34.4%, of revenue generated in the personal services sector. Healthcare services accounted for R199.7bn.
The report also analyses household spending on recreation, sport and culture, finding that gambling accounted for 54.5% of expenditure in that category.
These figures measure different aspects of gambling activity and spending, rather than the same pool of money. Together, they illustrate the scale of the industry and the extent to which gambling features in South Africans’ spending patterns.
When gambling becomes a way to make ends meet
The SRI report raises concerns about the portrayal of online gambling as a way to supplement household income, particularly when people are already under financial pressure.
Du Buisson says the speed and convenience of mobile gambling make it readily accessible, while its presentation as a potential source of income can make it especially appealing to people struggling to pay their bills.
“The casino is no longer located in a building you have to drive to; it is in your pocket. You can wager money anytime, anywhere, with just a few taps on your phone.
“What makes it even more dangerous is that gambling is increasingly portrayed as an opportunity to earn extra income.
“For someone already struggling financially, the promise of quick money can be particularly tempting. But gambling is not a way to earn an income; it can actually destroy the very money a family relies on,” he said.
The report cites international research linking online gambling to a two- to fourfold higher likelihood of problem gambling than other forms of gambling. It also discusses research from several countries indicating that only a minority of gambling accounts or profiles are profitable, although the findings vary by country and study.
The financial consequences can extend beyond the person placing the bets. Preliminary research by the National Gambling Board indicates that people are increasingly taking out reckless loans and even using social grants to gamble.
The report also highlights the role of advertising and sponsorships in making gambling appear commonplace. Solidarity wants stricter controls on gambling marketing, better enforcement of existing bans on illegal online casinos, and greater protection for young people and other vulnerable consumers.
Hannes Noëth, executive director of Solidarity Helping Hand, says the effects on families can be severe when money intended for basic necessities is lost to gambling.
“When money intended for food, school fees, rent, or electricity is gambled away, it is not only the person who placed the bet who loses.
“It also affects the children who have to do without necessities and the family that must try to repair the financial and emotional damage. It impacts marriages, children, family relationships, and ultimately entire communities,” he said.
Solidarity argues that the industry’s growth requires an urgent review of its regulation and marketing. Its proposals include tighter controls on gambling advertisements, better protection for vulnerable consumers and more effective regulation of online gambling platforms.
The report does not call for an outright prohibition on all gambling. Instead, it argues for stronger regulation to counter the normalisation of gambling and for better public understanding of the likelihood of making money from it.
CASA’s advice to consumers
CASA’s immediate concern is that consumers may turn to borrowed money to gamble, even as many households struggle to meet their financial obligations.
“Instead, consumers should focus on managing their household expenses responsibly by cutting down on unnecessary spending, and reducing risks like using credit for gambling,” says van Pletzen.
“Our message is simple: Do not spend what you cannot afford to lose.”
