Online gambling revenue soars in KwaZulu-Natal as fears over addiction grow
Employment numbers have also grown too, with the industry now supporting around 15,000 jobs.
South Africa.- The KwaZulu-Natal provincial government is under increasing pressure to tighten laws governing online gambling as concerns mount over the industry’s growing reach and potential societal ills. While the sector remains a major source of income and employment, critics warn that the costs—emotional, financial and public health—are often overlooked.
Members of the Economic Development Portfolio Committee met last week with the KwaZulu-Natal Economic Regulatory Authority (KZNERA) to examine the impact of gambling, particularly online gaming, on residents. KZNERA reported generating close to R700 million (€34.1m) from gambling over the past year, with about R730 million (€35.6m) raised in taxes during 2024-2025: While R689 million (€33.6m) went into the provincial revenue fund, R41 million (€2m) was set aside for distribution to beneficiaries.
By the end of July alone, revenue had reached R236 million (€11.5m), of which R223 million (€10.9m) went to the provincial revenue fund and R13 million (€633,000) was allocated for distribution.
Employment numbers have also grown, with the industry now supporting around 15,000 jobs.
On one side of the debate, Gamblers Anonymous in KwaZulu-Natal and other advocacy groups are urging the government to follow the lead of places where all forms of online gambling are outlawed. They argue the ease of access has dramatically increased harm.
Relapse rates among those seeking help are also high: for every 100 people who join support programmes, only about six complete the course. Stories include underage individuals registering gambling accounts under the names of parents or siblings, and people burning through their savings and credit. As one advocate put it: “The people that come to us most of the time are totally financially broke.”
On the other hand, some legislators believe that gambling cannot simply be banned; they see it as an economic activity that should be regulated to protect people while allowing the government and trusted operators to benefit. Committee member Hannah Lidgett warned that banning or poorly regulating gambling could push people into illegal gambling, reduce tax revenue and expose vulnerable people to even worse exploitation. She believes regulation with proper consumer protections and oversight is the better path.
In recent months, province-level leaders have echoed the call for stronger regulation. KwaZulu-Natal’s MEC for Finance, Francois Rodgers, has said that because South African legislation lacks clear rules around online gambling, the province cannot reliably tax that sector. He is backing the Remote Gambling Bill introduced by the Democratic Alliance, which would aim to establish licensing, taxation and consumer protections for online gambling operators.
Meanwhile, national authorities are pushing to crack down on illegal online operators. The National Gambling Board has identified at least 90 websites operating illegally, many licensed overseas, and is working with internet service providers, law enforcement and provincial bodies to block or remove these sites and penalise operators.
What appears clear is a tension between revenue and regulation. KwaZulu-Natal earns hundreds of millions of rands in gambling taxes, provides thousands of jobs, but also sees growing signs of harm: addiction, underage participation and financial ruin. Advocates argue that unless regulation is strengthened—and unless treatment, counselling and support services are scaled up—many of the benefits may be outweighed by long-term costs.
The Committee Chair, Mafika Mndebele, has demanded a follow-up briefing on the social impact of gambling, especially online. He said: “We need to consider how it destroys families and how individuals become addicted to gambling without receiving counselling and support.”
