The move by both national and provincial government to tighten regulation of online gambling and betting is welcome. The industry has grown at an astonishing pace, with billions of rands being spent every year on sports betting, online casino-style games and other forms of digital gambling. National Treasury’s proposed 20% tax on online gambling revenue could generate more than R10billion a year, while KwaZulu-Natal hopes to secure between R50 million and R100 million annually through its new Gaming and Betting Tax Bill.
At a time when public finances are under severe strain, this additional revenue cannot be ignored. However, the government must be careful not to focus only on the money. The rapid growth of gambling is not taking place in isolation.
It is unfolding against a backdrop of rising living costs, unemployment, debt and financial hardship. Increasingly, struggling households and individuals are turning to gambling in the hope of a life-changing win. Research has repeatedly shown that gambling can be highly addictive.
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While many people gamble responsibly, others quickly find themselves trapped in a cycle of losses, debt and desperation. The social consequences are often devastating for families and communities. This is why regulation must go beyond taxation.
Some of the revenue generated should be directed towards awareness campaigns, public education, stronger enforcement, counselling services, and treatment programmes for gambling addiction. The public also needs greater protection. It is no longer enough to expect individuals to simply regulate themselves. Technology allows betting companies to identify patterns of behaviour.
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