The Rising Tide of Online Betting in South Africa: What It Means for Microfinance

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• 09/10/2025
• The Rising Tide of Online Betting
• ACPAS

The Rising Tide of Online Betting in South Africa: What It Means for Microfinance

Online betting is booming in South Africa. With the rise of mobile devices and fast internet, it's never been easier to place a bet, and millions of South Africans are doing just that, every day.
But while this fast-growing industry is creating business opportunities, it's also raising big questions for lenders, especially those in the microfinance space.

A Nation Betting More Than Ever

South Africa is now one of the fastest-growing online gambling markets on the continent. Sports betting is especially popular, with most users being young men between 18 and 34, many from lower-income backgrounds.

The numbers are staggering:

• 81% of bets are now placed online.
• Total wagers reached R761 billion by March 2024 (though most of this includes recycled winnings and bonuses).
• Actual deposits (the real money being spent) sit at around R115 billion, or 3% of household disposable income.
• In 2024 alone, South Africans lost about R36 billion to betting, and this was expected to rise by another R15 billion by March 2025.

Much of this growth is driven by mobile access, aggressive advertising, and the lure of easy money. But behind the flashy promotions and influencer endorsements, the impact on household finances is becoming harder to ignore.

Who's Betting, and Why?

Recent studies show that around 1 in 10 South African adults use online betting platforms. Among them:

• 70% say they bet to supplement their income
• 60% use non-discretionary funds, like money meant for essentials
• 16% borrow money to place bets
• 1 in 3 SASSA grant recipients are placing online bets

In many cases, betting isn’t seen as entertainment, it’s seen as a way to make ends meet. That’s where the risks really start.

Who's Winning?

On the business side, online betting is a goldmine:

• Hollywoodbets and betway dominate the space, taking in 75% of all deposits
• Gross Gaming Revenue (GGR) is growing 20–40% annually
• Players see high returns (around 95%), which keeps them playing, and spending

Even retailers and voucher providers are benefitting. Usage of OTT vouchers (from Capitec, Pep, and others) has doubled in just two years, making it easier than ever to load funds into betting accounts.
But while businesses win, many consumers lose both financially and emotionally.

Betting Is Shaping Consumer Habits

Bettors tend to spend at:

• Quick-service restaurants like KFC and Chicken Licken
• Value retailers such as Mr Price and Ackermans
• Budget grocery stores like Shoprite and Boxer

These spending patterns show how betting is becoming part of everyday life, often at the cost of saving, investing, or building long-term stability.

A New Challenge for Microfinance

Microfinance institutions (MFIs) exist to help people meet essential needs; rent, school fees, groceries, and small business funding. But with the rise of online gambling, more borrowers are using loans for betting, directly or indirectly.
Some worrying trends include:

• Missed repayments after major sporting events
• Spikes in loan applications before big tournaments
• Increased loan stacking across multiple lenders
• Borrowers using new loans to repay betting losses

This kind of debt spiral is hard to break; and puts both clients and lenders at risk.

Betting Adds New Layers of Credit Risk

Standard affordability checks often miss gambling activity, especially when clients use cash-based platforms or alternative wallets. Even with bank statement analysis, many transactions are hard to trace, especially if bettors are hiding their habits.

This makes it harder for MFIs to assess risk accurately, increasing the chances of over-indebtedness and loan defaults.

What Can Be Done?

While online betting isn’t going away, there are steps the industry can take to reduce its negative impact:

• Smarter Credit Vetting
  Use technology that detects signs of frequent betting from client statements or mobile wallet data.
• Financial Education
  Teach clients about responsible money management, including the risks of gambling with borrowed funds.
• Debt Counselling Support
  Partner with counselling services to help borrowers already caught in a debt trap.
• Regulatory Collaboration
  Work with the National Gambling Board and other regulators to encourage transparency and better oversight.

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A Shared Responsibility

At ACPAS, we believe technology can be a key ally in this space. With smarter loan management tools, data-driven insights, and proactive risk monitoring, MFIs can continue to support the communities they serve, even in an increasingly digital and unpredictable world.

Contact us today! Let’s help you work smarter, not more expensively.

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