By: Chidubem - igamingtoday

Sean Summers, the CEO of Pick n Pay, has made a strong case for a complete ban on online gambling advertisements in South Africa, arguing that the industry has spiraled out of control and is costing the economy billions each week.

Speaking to CapeTalk’s Afternoon Drive with John Maytham, Summers highlighted the significant impact of offshore betting platforms, which he claims are siphoning over R1 billion (€52 million) from the country every week, depriving the local economy of critical resources.

He pointed to banking data showing that approximately 20% of social grants, partially SASSA benefits intended for essential needs such as food and rent, are being funneled into mobile betting apps.

“It’s down at the lower end of the market where people are battling to feed their families, never mind anything else. It’s just bizarre, and the quantum is absolutely massive,” Summers stated.

SA gambling losses show worrying numbers

South Africa’s gambling losses have soared to ZAR 70 billion (€3.6 billion) in the last fiscal year, a figure comparable to Pick n Pay’s annual turnover.

Summers has labeled online gambling a “scourge” that demands urgent action from local authorities. Unlike land-based casinos and lotteries that provide jobs and tax revenue, online platforms quietly drain money from the economy without offering any benefits to local communities.

He advocates for a regulated approach similar to that of several European countries, including Belgium, the Netherlands, Italy, and the UK, which have enacted bans or restrictions on gambling advertising, especially in areas frequented by children and in public spaces.

The sector’s rapid growth, nearly 60% year-on-year, has been driven by the proliferation of smartphones and aggressive advertising, increasing accessibility. 

He expressed deep concern over the impact on vulnerable populations, such as low-income earners and students, who often resort to online betting as a last resort, leading to devastating financial repercussions. 

“This is money that has been hoovered out of this economy in extraordinary amounts, and the people who are predominantly the victims are the ones who can least afford it,” he added.

NGB working to tighten controls 

Summers also compared the gambling industry’s practices to the harmful promotion of tobacco and urged for stronger regulations and increased taxes, suggesting a complete ban on gambling advertisements.

The industry generated R75 billion (€3.9 billion) in gross revenue for 2024-2025, with online betting emerging as the fastest-growing segment.

In response to these concerns, the National Gambling Board (NGB) and various provincial regulatory agencies in South Africa are signaling their intent to strengthen controls. This includes targeting the promotions of gambling influencers, which have become a significant part of the advertising scene.

Source: Focus Gaming News

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