South African Gambling Spending Rises 17% Despite Overall Consumer Decline

Author: Cezary Kowalski

Date: 10.09.2025

South African consumers reduced overall spending by 6% month-to-month through June 2025 while simultaneously increasing gambling expenditures, according to Absa’s latest Merchant Spend Analytics Report. The banking data reveals gambling card spending rose 17% year-to-date despite broader economic pressures affecting household budgets and retail activity across multiple sectors.

Online Gambling Dominates Transaction Growth

Digital gambling platforms captured 66% growth compared to a 1% decline in physical gambling venues during the reporting period. Online gambling now represents 61% of all gambling transactions as of June 2025, marking a substantial increase from just 26% in 2022. Transaction volumes in the gambling sector climbed 16% year-to-date, though this represents a slowdown from the 52% growth recorded in 2024.

The shift toward digital platforms reflects broader technological adoption patterns across South African consumer behavior. Physical gambling locations experienced minimal activity reduction while online alternatives attracted significantly more engagement. Isana Cordier from Absa Corporate and Investment Banking noted that total card spending showed a 6% month-to-month decline alongside an 8% fall in transaction volumes during June 2025.

Economic Pressures Drive Smaller Transaction Patterns

Consumer spending patterns indicate preference for lower-value purchases as households manage rising living costs. Average transaction values remained in negative territory for four consecutive periods between early 2022 and mid-2025. Credit card usage continues outpacing debit card usage, suggesting consumers increasingly rely on credit facilities to manage financial pressures.

The gambling sector’s resilience contrasts sharply with other retail categories experiencing reduced activity. Food-related spending maintained a 48% market share with minimal 1% growth year-to-date, while online food purchases surged 49% despite the category’s market share dropping slightly to 17%. Overall online spending maintains double-digit growth while in-store spending slowed to 1%, primarily driven by reduced activity in food retail segments.