(AsiaGameHub) –   African businesses are now facing competition from a new sector vying for consumers’ discretionary spending: online gambling.

As online gambling expands, traditional businesses, including entertainment providers, telecommunications firms, and even grocery retailers, are witnessing a shift where customers increasingly choose to spend on games of chance instead of essentials like food, movies, or improved internet services.

“People are diverting funds into what feels like an endless drain that could otherwise be used for groceries,” stated Pieter Engelbrecht, chief executive of Shoprite Holdings, which is widely recognized as Africa’s largest supermarket group. According to research by H2 Gambling Capital, the African gambling market is expected to reach $13.5 billion this year.

This trend is especially pronounced in South Africa, the continent’s biggest economy, where annual betting volumes have grown by approximately 50% over the past three years.

Kenny Fihla, CEO of Absa, cautioned that clients are accumulating significant debt and consequently have less disposable income available for other expenditures.

“This constitutes a serious issue that, to be honest, deeply concerns us,” Fihla remarked, as quoted by The Japan Times.

Businesses and Policymakers Feel the Pressure

The broader impacts of the gambling boom are reverberating across various industries. Woolworths Holdings has also issued warnings about declining discretionary spending.

“Since gambling draws from consumers’ discretionary spending capacity, certain segments of our business are more exposed,” explained CEO Roy Bagattini.

Standard Bank reported that, between 2021 and 2025, the average proportion of income allocated to gambling rose to 2%, highlighting the sector’s swift expansion across the region.

The swift growth of online betting has also amplified worries regarding whether current consumer protections remain adequate in a predominantly digital gambling landscape.

With smartphone usage continuing its upward trajectory throughout Africa, policymakers are under mounting pressure to balance potential tax revenues and economic growth against escalating concerns about financial harm, household debt levels, and the long-term social consequences of widespread access to gambling platforms.

Concerns surrounding the surge in gambling activity across Africa have surfaced repeatedly in recent years. Last year, a social impact specialist in South Africa noted that 41% of low-income earners resort to gambling in an effort to cover their monthly bills.