How Joburg’s Economy Would Be Affected if Gambling Was Banned

Jessica Matabola22 August , 2025

2 4 minutes read

How Joburg’s Economy Would Be Affected if Gambling Was Banned

Gambling has long been a major part of Joburg’s economy, generating significant revenue and creating thousands of jobs. But what would happen if gambling were suddenly banned in the city? The effects could be far-reaching, impacting not just casinos but also tourism, retail, hospitality, and even public services.

In this article, we’ll take a closer look at how banning gambling in Johannesburg would affect its economy, the sectors that would be hit hardest, and the potential unintended consequences.

ALSO READ: Gauteng’s Gambling Industry and Employment: Jobs Created and Lost in 2025

The Role of Gambling in Joburg’s Economy

Revenue Generation: A Major Source of Income

In 2023, Gauteng’s gambling industry brought in over R1.2 billion in taxes, making up a quarter of the total gambling tax collected across the country. The total Gross Gambling Revenue (GGR) in Gauteng was R17.3 billion, which is nearly a third of the national total.

This money plays a vital role in funding essential services and public projects. If gambling were banned, Johannesburg would lose a major source of income. The city would face challenges in funding infrastructure projects, social services, and community development programmes, leading to significant strain on Johannesburg’s economy.

Job Losses: A Major Employment Impact

The gambling industry also provides thousands of jobs in Johannesburg. Directly, casinos, betting shops, and other gambling establishments employ over 270 people. But the impact stretches beyond the gambling sector. Employees in hospitality, transport, and retail also rely on the foot traffic generated by these establishments.

Banning gambling would cause a significant number of job losses, not just in the casinos but in industries that depend on the revenue they bring in. This could raise unemployment rates, adding even more strain to Johannesburg’s already fragile job market.

Impact on Tourism and Joburg’s Economy

Tourism Decline: Fewer Visitors to Johannesburg

Johannesburg’s casinos are major attractions for both local and international tourists. Places like Montecasino and Silverstar Casino are known for more than just gambling. They offer concerts, restaurants, and family-friendly activities, drawing visitors from all over South Africa and beyond.

Without these gambling venues, Johannesburg would lose an important part of its tourism appeal. Fewer visitors would mean fewer hotel stays, less spending in local shops, and a drop in restaurant traffic. For many local businesses, gambling establishments are anchor attractions, visitors come for the casinos, but they spend money in the surrounding area. A ban would disrupt this entire system, leaving Johannesburg’s tourism industry struggling.

Underutilised Infrastructure: An Economic Drain

Johannesburg’s gambling infrastructure – casinos, hotels, restaurants, and event venues – is a significant part of the city’s economy. These facilities were built with large investments, and if gambling were banned, many of them could sit underused. This would lead to a waste of resources and could ultimately create financial problems for the owners.

For example, maintaining large-scale infrastructure like hotels and casinos without a steady stream of income could become financially unsustainable. If these businesses fail, it could put even more strain on Johannesburg’s economy.

Unintended Consequences: Illegal Gambling

A Shift to the Underground Economy

Banning gambling would not eliminate demand. Instead, it would likely push people toward illegal gambling operations. This underground economy would be harder to regulate and could be dangerous for those involved. It could also fuel organised crime, as unregulated gambling operations are often linked to illegal activities such as money laundering and fraud.

The rise of illegal gambling would undermine the social protections that come with regulated gambling, making it more difficult to protect vulnerable individuals and communities.

Impact on Vulnerable Groups

Gambling has long been a concern for vulnerable communities, particularly low-income individuals, the elderly, and women. Many people who are struggling financially may turn to gambling as a way to escape poverty. Unfortunately, gambling often leads to deeper financial problems, pushing people further into debt and desperation.

If gambling were banned, these vulnerable individuals might be pushed into even more dangerous situations. Without legal outlets for gambling, they may turn to illegal options, which could have far more harmful consequences for their well-being.

Another significant impact of banning gambling would be the loss of corporate social investment (CSI) programmes. Many gambling establishments contribute to social initiatives, funding education, health programmes, and community development. These programmes are essential in addressing poverty and inequality in Johannesburg.

Without the financial contributions from the gambling industry, many of these programmes could be cut or scaled back, leaving local communities in need of support. This would further weaken the social fabric of Johannesburg, creating even more economic hardship for vulnerable groups.

Regulatory Alternatives: A More Balanced Approach

Modernising Gambling Regulations

Rather than imposing a complete ban, a better solution may be to update and improve the regulation of gambling in Johannesburg. The Gauteng Gambling Board is already reviewing gambling laws to tackle issues like online gambling and ensure that the industry remains safe and fair. Strengthening regulations can help mitigate the social harms of gambling while maintaining its economic benefits.

Striking a balance between regulation and freedom would allow the industry to continue generating revenue and jobs while also protecting vulnerable individuals and communities.

A Holistic Approach

Instead of banning gambling outright, a more balanced approach would involve introducing stricter regulations, providing support for those negatively affected by gambling, and promoting responsible gaming. Such an approach would minimise the negative aspects of gambling while allowing Johannesburg to retain the economic benefits that come with it.

The Bottom Line: Balancing Risks and Rewards

A gambling ban in Johannesburg would have significant economic consequences. From job losses to a decline in tourism and revenue, the effects would ripple through the city’s economy. Worse, illegal gambling could become more widespread, creating even more social and economic problems.

Rather than a total ban, a more thoughtful, balanced approach to gambling regulation could preserve the benefits of the industry while addressing its social costs. This approach would allow Johannesburg to continue benefiting from the gambling sector without sacrificing the well-being of its residents.