African Governments Tighten Grip on Gambling as Addiction Surges

JOHANNESBURG – A rapid rise in online gambling across Africa is pushing governments to increase taxes and tighten regulation, as policymakers try to contain addiction while boosting strained public finances.

From South Africa to Zimbabwe and Senegal, authorities are introducing or expanding levies on betting operators. The shift reflects growing concern that gambling is evolving into a major social and economic risk.

In South Africa, the continent’s largest gambling market, regulators estimate that nearly two-thirds of adults now participate in online betting, up from about 30% in 2017. The scale is substantial. Bettors wagered roughly R1.5 trillion in the 2024/25 financial year, highlighting both the industry’s growth and the state’s interest in capturing more revenue.

Government is now weighing a 20% national tax on online gambling profits, a move expected to more than double annual revenue from the sector to around R10 billion. Similar tax increases have already been rolled out in Zimbabwe, Malawi and Senegal.

Officials argue the measures could help curb excessive gambling while creating fiscal space. But the effectiveness of taxation as a deterrent remains disputed.

Casinos are always full as more and more people are turning to gambling to supplement their salaries

Sibongile Simelane-Quntana of the South African Responsible Gambling Foundation said the surge reflects deeper economic pressures.

“We’re trying to gamble ourselves to prosperity,” she said, noting that more than 4,600 people sought help for gambling addiction in 2025, up from 2,600 the previous year.

Botswana’s fast-growing market

In Botswana, the gambling sector is expanding quickly, driven by mobile betting. Regulators expect gross gambling revenue to exceed P1 billion by early 2026, more than four times the level recorded two years ago. The number of registered bettors is projected to surpass 700,000.

Authorities there are increasingly focused on balancing economic gains with social safeguards, as the industry becomes a growing contributor to jobs and state revenue.

Rising concerns in Eswatini

In Eswatini, gambling has long been linked to tourism and economic activity, but the rapid shift to digital betting is raising fresh concerns.

Recent estimates suggest around 385,000 emaSwati are registered gamblers, nearly a quarter of the population. The government reported gambling-related revenue of about E26.1 million in 2025, underlining the sector’s growing economic role.

But the social cost is becoming more visible. Psychologist Ndo Mdlalose said online platforms are accelerating addiction because of their accessibility and low visibility.

“Digital gambling has worsened the situation because most people are intensely addicted and can easily get away with it. It is not an obvious habit like substance abuse,” she said.

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Mdlalose warned that many people now treat gambling as a primary source of income despite the risks.

Online gambling has grown across Africa in recent years.

“Online gambling has become so widespread that people have resorted to it as a major source of income. Sadly, gambling is extremely risky yet very hard to quit,” she said.

A 2025 study in Eswatini found that rising smartphone use and a young, digitally active population are driving the boom. Lawmakers have since moved to tighten regulation, with the Eswatini House of Assembly approving measures to strengthen oversight of online gambling.

Authorities have also stepped up enforcement. Police recently arrested 88 foreign nationals in Mbabane over an alleged illegal online gambling and fraud operation, seizing computers and other equipment.

Industry resistance and policy dilemma

The push for higher taxes is facing resistance from betting companies, which warn that excessive levies could drive gamblers դեպի unregulated platforms.

Industry groups argue that combined taxes could approach 40% in some jurisdictions, making legal operators less competitive.

“There’s a real risk that legal operators become less competitive, pushing users underground,” stakeholders have cautioned.

Across the continent, the human cost is becoming harder to ignore. In Senegal, support groups report rising cases of compulsive gambling linked to job losses and financial distress.

Experts say taxation alone will not solve the problem.

“Today we all agree that we cannot treat or cure addiction through taxation,” said Seydina Mohamed Moustapha Gueye, who works with gambling support groups in Dakar.

A growing policy challenge

The expansion of online betting, fuelled by mobile access and digital payments, has transformed gambling into one of Africa’s fastest-growing industries.

Governments now face a difficult balancing act: how to regulate and tax the sector without pushing it underground or deepening the social harm already taking hold.