South Africa is facing a critical crisis where organized crime, online gambling syndicates, and political power intersect, threatening the foundations of its democracy.
Rise Mzansi has declared the country’s gambling epidemic a national emergency, warning that it destroys lives while regulators remain passive. Makashule Gana, the party’s National Assembly caucus whip, stated during the Budget Vote 39 debate on Trade, Industry, and Competition:
“We are facing a gambling crisis. It is not a minor issue; it is an emergency.”
Makashule Gana mentioned the struggles of vulnerable South Africans, like a single mother worried her son will fall prey to the false promises of gambling.
In 2024, South Africa’s gambling industry saw R1.1 trillion wagered and R60 billion in revenue. This growth has created a fertile ground for criminal syndicates to embed themselves economically and politically. Gana noted that online gambling has surged, disproportionately affecting low-income communities:
“Many people gamble money they should be using to buy essentials.”
While Rise Mzansi condemned national inaction, the Democratic Alliance (DA) exposed failures at the provincial level. Michael Waters, DA constituency head for Kempvale, revealed that the Gauteng Gambling Board is severely understaffed, hampering its ability to combat illegal operations:
“The Gauteng Gambling Board has only three law enforcement inspectors instead of the required 10.”
These inspectors face threats and intimidation, forcing them to work in pairs and limiting the number of inspections they can conduct. In the past five years, only 36 referrals to law enforcement have been made, highlighting the inadequacy of current measures.
The gambling industry’s influence extends beyond illegal operations. Wealthy donors linked to gambling, such as billionaire Martin Moshal, have contributed R59.5 million to political parties like the DA and ActionSA from 2021 to 2023. While legal, these donations raise concerns about “political party funding mafias” that could sway policies in favor of the industry.
Gana criticized the government for neglecting the crisis saying “Minister Parks Tau, your inaction is part of the problem.”
He pointed out that the National Gambling Board remains incomplete and the National Gambling Policy Council has not convened, allowing gambling operators to operate without accountability.
The consequences of this crisis are staggering. Rise Mzansi reported an almost eight-fold increase in people seeking help for gambling addiction, from 375 in 2020/21 to 2,997 in 2023/24. Gana warned that even schoolchildren are becoming addicted, with phones coming preloaded with betting apps.
He demanded that the industry take responsibility for their actions, “Develop some shame. Stop flooding our airwaves with adverts. No gambling adverts before 11 a.m. If the sector fails to self-regulate, this Parliament will regulate you, and it might not be nice.” He Said
The Global Organized Crime Index ranks South Africa as the 7th worst globally for organized crime, surpassing countries like Afghanistan and Russia. These syndicates are well-armed and operate with high levels of violence, expanding from localized crime into systemic corruption.
While direct proof of a “gambling mafia” controlling political parties is lacking, the sophistication and opacity of these networks pose significant risks. The Political Party Funding Act, although a step forward, has loopholes that allow for indirect funding, leaving parties vulnerable to undue influence.
Gana vowed that Rise Mzansi would continue pushing for gambling reforms that are “real, enforced, and in the public’s interest.” He stated:
“No country has ever gambled its way to prosperity.”
The stakes are high. South Africa’s democracy is under threat from mafia-style networks that exploit the gambling boom to launder money and buy influence. As one expert warned:
“The urgent task of dismantling the extortion economy… is formidable. Yet, overlooking the issue will have repercussions for the nation at large.”
The time for action is now, before the gambling mafia’s shadow becomes an unbreakable stranglehold on the country’s future.
