African Businesses Feel the Pinch as Customers Flock to Online Gambling

African businesses are now competing for discretionary spending against a new sector – online gambling.

As it proliferates, regular businesses, whether entertainment providers, phone companies, or even grocery shops, are seeing customers increasingly willing to spend on games of chance rather than perishables, a good flick, or faster internet.

“People are spending money in a black hole that could have been spent on food,” confirmed Pieter Engelbrecht, chief executive of Shoprite Holdings, arguably Africa’s largest grocer. The African gambling market is projected to hit $13.5 billion this year, according to research by H2 Gambling Capital.

This trend is particularly noticeable in South Africa, the continent’s largest economy, which has seen betting volumes rise by roughly 50% annually over the past three years.

Kenny Fihla, CEO of Absa, warned that clients are becoming heavily indebted and have less disposable income available to spend elsewhere.

“This is a massive problem that, quite frankly, we’re worried about,” Fihla said, as cited by The Japan Times.

Businesses and Policymakers Feel the Pressure

The ripple effects of gambling growth are being felt across multiple sectors, with Woolworths Holdings also warning about reduced discretionary spending.

“Because gambling taps into the consumer’s discretionary wallet, there are parts of our business that are more vulnerable,” CEO Roy Bagattini explained.

Standard Bank said the average share of income spent on gambling reached 2% between 2021 and 2025, underscoring the sector’s rapid regional growth.

The rapid expansion of online betting has also intensified concerns about whether existing consumer protections are equipped for a digital-first gambling environment.

With smartphone penetration continuing to rise across Africa, policymakers are increasingly facing pressure to balance tax revenue and industry growth against mounting concerns over financial harm, household debt, and the long-term social impact of widespread gambling accessibility.

Concerns over the rise of gambling in Africa have been raised repeatedly in recent years. Last year, a social impact practitioner in South Africa said that 41% of low-income earners turn to gambling in an attempt to help pay their bills.