With gambling generating gross revenue of around R74 billion, there is a growing problem with how accessible online betting is locally.

This is more than Pick n Pay made in the first half of the financial year, which CEO Sean Summers finds concerning.

The CEO says that gambling advertising should be banned in much the same way smoking advertising has been banned.

In the last financial year (2024-2025), the Gross Gambling Revenue for the entire South African sector sat at R74 billion. The largest portion of that revenue came from betting, and one doesn’t need to look too far to see why.

Betting platforms are as common today as cigarette adverts were in the early 90s. Betting firms sponsor sports teams, tournaments and stadiums, fuelled by the bad luck of down-on-their-luck South Africans struggling to make ends meet. While the National Gambling Board works to crack down on illegal gambling, it seems to be doing little to address the growing problem of betting services.

While not considered gambling by definition, betting services have become so easily accessible, it’s little wonder that they generated R51 billion in revenue over the last financial year. Revenue from Casinos, Bingo and Limited Payout Machines together doesn’t even come close to how lucrative betting is.

The problem is starting to get widespread recognition, with Sean Summers, chief executive officer at Pick n Pay, noting in an earnings call this week that the problem is out of control.

“Somewhere north for R70 billion is being taken out of the market by the gambling industry,” Summers noted. The CEO notes that the revenue from the gambling sector is as much as the retailer made in the first half of the financial year. Let that sink in. More was spent on gambling than groceries in the first half of the year at Pick n Pay.

While Summers makes a good point, it is framed against the backdrop of Pick n Pay having a pretty rubbish start to its 2026 financial year.

While the company celebrated a 0.4 percent increase in turnover in South Africa compared to the first half of the 2025 financial year, it also warned investors about the status of the business.

“Pick n Pay continues to be loss‑making at the trading profit level, with company‑owned supermarket like-for-like sales growth lagging slightly behind like-for-like operating cost growth in the reporting period. The multi‑year journey of returning Pick n Pay to a profitable and future‑fit business continues to be tackled in a purposeful and methodical manner,” investors were told on Monday.

“On a full-year FY26 basis, the Group expects the Pick n Pay segment trading loss to be broadly in line with FY25. This is because Pick n Pay continues to invest in critical skills to rebuild retail excellence to facilitate the achievement of the trading profit after lease interest break‑even target,” the retailer added.

So it seems that Summers is slamming the gambling sector because folks are spending money on bets rather than groceries at his store. We’re not worried too much about Summers and his pay cheque being impacted by this poor performance, but he makes an undeniably good point.

“Smoking was a cancer and they banned all marketing. I think we need to give serious consideration to a similar move,” the CEO said.

All too often do we see promises that locals could win millions if they just bet on something. Sports events are throwing betting in your face, and we’re fast approaching US levels of betting, where broadcasters share the splits of bets.

What makes this all the more frustrating is that online gambling isn’t permitted under South African law. But, online betting is, even if betting, is a form of gambling. It’s not clear why this distinction exists, it really makes no sense, and if anything, it highlights the need for legislative reform in this area. However, that could be made worse should online gambling be made legal in all forms, which is something that could happen in future. If that levy breaks, the problem will only get worse.

While Summers may want folks to have more disposable income to spend at his stores, his thoughts about banning gambling adverts in all their forms are valid. Perhaps having somebody with his status can highlight how bad this is all getting and inspire action from the powers that be.

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