Prohibitionist Responses To Gambling Risk Pushing Activity Underground

Gambling is not going to disappear, nor should it. But the current trajectory – where technology, advertising and financial ease conspire to expose the most vulnerable to sustained harm – is untenable

Photo by Heather Gill on Unsplash

Written By: Mukundi Budeli

South Africa is waking up to a new, pervasive social‑health problem: gambling has moved from the margins into the fabric of everyday life. Where once placing a bet required travel, cash and the oversight of a community, the transaction now happens on a phone in private, during a lunch break or at the kitchen table. The speed, ubiquity and glamour of online gambling, amplified by relentless advertising and celebrity endorsements, have normalised risky behaviour and made addiction easier and less visible. The consequences are real and broad – not only financial harm to households but rising mental‑health problems, family breakdowns and a corrosive effect on communities and work.

Three forces have combined to remake the gambling landscape: technology, marketing and financial accessibility. Cheap smartphones and data enable almost anyone to open an account and bet within seconds. The industry exploits that convenience with pervasive advertising: stadium signage and airport banners that reach families and children, packaging and even preinstalled browser shortcuts on new devices. Sports stars and influencers lend perceived legitimacy to betting brands, normalising the practice for younger audiences and presenting gambling as a fast route to success. Digital payment systems and weakly regulated channels for transfers make it straightforward to move money into and out of betting accounts, erasing many of the informal checks that once constrained excessive play.

This new ecosystem hits young people and low‑income households particularly hard. Reports of NSFAS recipients using allowances for betting, and of social‑grant beneficiaries losing key income to wagers, point to a troubling pattern: the financially vulnerable are being lured by targeted marketing and easy access. Minors are also exposed: children sometimes use family members’ personal details to sign up, and advertising in public spaces or on devices can become their first encounter with betting brands. The stigma and secrecy surrounding problem gambling mean family members often discover the true scale of harm only after debts, missed rent and deteriorating mental health have accumulated.

The harms extend beyond individuals. Communities suffer increased domestic tensions and substance misuse as people attempt to cope with losses. Employers report absenteeism and reduced productivity. Local economies feel the knock‑on effects when wages and allowances are consumed by betting rather than spent locally. There is also a broader public‑policy concern: taxpayer funds intended to buffer poverty – social grants and student allowances – are being diverted into an industry that profits from losses. That reality forces a hard question about how public policy should reconcile personal freedom with the state’s responsibility to protect vulnerable citizens and public resources.

Regulation has struggled to keep pace with innovation. Existing laws governing advertising, age verification and payment mechanisms were designed for a different era and are ill‑equipped to address algorithmic targeting, influencer marketing and micro‑transactions that circumvent traditional safeguards. Prohibitionist responses risk pushing activity underground, as South Africa’s Covid alcohol bans showed. Yet doing nothing is also costly. A balanced approach can reduce harm while preserving the legitimate leisure choices of adults.

First, advertising must be constrained in ways that protect children and young people. Rules should restrict gambling advertising in family‑oriented public spaces, ban gambling ads during programming with significant youth audiences, and require clear disclosures for influencer and celebrity endorsements. Second, payment rails should be adjusted to reduce impulsive micro‑transactions. Financial service providers can offer optional spending limits, cooling‑off periods and real‑time warnings for accounts exhibiting gambling behaviour, while safeguards protect privacy and consent. Third, treatment and early‑intervention services need expansion: accessible helplines, community screening, school awareness programmes and employer‑linked support recognise problem gambling as a health issue requiring clinical and social responses rather than moral censure.

Better data is essential. The state should prioritise improved statistics on gambling‑related indebtedness, impacts on grant and student allowance recipients, and the relationship between gambling and mental‑health outcomes. Evidence, not anecdote, should guide proportionate policy. Finally, public education campaigns must clearly explain odds, the addictive mechanics of modern betting apps and where to seek help, targeting youth and families with practical information.

South Africa’s gambling surge reflects outdated regulation colliding with highly efficient markets, and heavy‑handed bans are likely to push demand into the shadows; a better path is to let private solutions and clear rules foster safer markets – require operators to publish audited payout and fairness data and permit independent certifiers to endorse safer‑play features; encourage insurers and credit providers to offer voluntary loss‑protection products; let fintechs compete with opt‑in spending limits, real‑time alerts and reversible‑payment options; and focus enforcement on unlicensed offshore operators and fraudulent affiliate marketing. Such an approach preserves adult choice while making transparency and consumer protection profitable for reputable firms and costly for predators.

Gambling is not going to disappear, nor should it. But the current trajectory – where technology, advertising and financial ease conspire to expose the most vulnerable to sustained harm – is untenable. South Africa needs measured reforms that curb predatory practices, shield young people, protect public transfers and scale treatment and research. With clearer rules and better support, gambling can be managed as a regulated pastime rather than a hidden source of ruin.

Mukundi Budeli is a final year LLB student at the University of Witwatersrand and an Associate of the Free Market Foundation.