Rising gambling activity across Africa is diverting household spending away from essentials such as groceries, entertainment, and mobile phone bills.

Executives from some of the continent’s largest companies are now warning that the trend is putting increasing pressure on family budgets.

“People are spending money in a black hole that could have spent on food,” said Pieter Engelbrecht, the chief executive officer of Africa’s largest grocer Shoprite Holdings.

Online betting is expanding rapidly across Africa, with gross gaming revenue expected to hit $13.5 billion this year, more than twice its 2023 level, according to data from H2 Gambling Capital.

Driven by a young and fast-growing population, increased smartphone penetration, and weak regulatory frameworks, betting companies are attracting large numbers of users and reducing the share of disposable income available for other discretionary spending.

South Africa’s Treasury has described the trend as an “important policy concern” that may require government action through tighter regulation and taxation, a spokesperson told Bloomberg.

As spending on online betting increases, it is also deepening financial strain among frequent users.

A research by Standard Bank, Africa’s largest bank, shows that the average share of income spent on gambling doubled to 2 per cent between 2021 and 2025.