IFP funding from major gambling tycoon under the spotlight

Gambling tycoon Martin Moshal has provided significant funding to political parties over the past few years. However, he does not reside in the country.

Since 2021, Moshal, who owns Microgaming, which powers Betway, has donated R103 million to four political parties. This is more than 10% of the R880 million declared throught the period.

These parties include the Democratic Alliance (R43 million), ActionSA (R37 million), Build One South Africa (R15.5 million), and the Inkatha Freedom Party, which received R7.5 million.

However, this has raised concerns about whether this may influence a political party’s stance on gambling regulation.

RISE Mzansi MP Makashule Gana recently told Newsday that “It is a concern when gambling operators become the key funders of political parties.”

“It does not inspire confidence that political leaders or parties will spearhead gambling reforms in South Africa.”

However, Moshal, who resides in Israel but was born and studied in South Africa, said that these donations will help the country fulfil its potential.

“As individuals, there’s only so much we can achieve. A government can have an impact on the entire country, for better or worse,” he said.

“That’s why investment in competent parties with integrity can have such an impact on the country as a whole.”

“If they come together or work in some way as a team, they could provide solid leadership and government of the country.”

The IFP’s response

Given that it was one of the beneficiaries of Moshal’s funding, Newsday reached out to the party to find out its stance on regulating gambling in South Africa.

It pointed to the adverse effects that gambling has on South African society, highlighting its ease of access. However, it argued that it’s not all doom and gloom.

“The evidence is clear: gambling addiction is on the rise, personal debt is deepening, and young people are increasingly being lured into high-risk behaviour by aggressive marketing campaigns, particularly through unregulated online platforms,” it said.

“However, we must also acknowledge that the gambling industry contributes approximately 0.83% to South Africa’s GDP. It creates jobs, generates tax revenue, and supports provincial economies.”

The party told Newsday that it is therefore essential to strike a balance that curbs the social harms while allowing for economic growth.

It proposes two solutions to the issue of online gambling. The first is a comprehensive review of the National Gambling Policy to align it with the digital era.

This would also entail reviewing the lack of alignment between provincial and national legislation.

Secondly, it believes that regulation must be as much about protection as it is about policing.

“The IFP calls for a dedicated Public Awareness and Rehabilitation Fund, financed by levies from the gambling industry, to assist affected individuals and families.”

The impact on society

The devastating effects that gambling has had on the South African population have become increasingly apparent as more of the population hop on the bandwagon.

This is particularly true for the lower-income segments of society, such as grant recipients who spend what little they have trying to raise the stakes. The same applies to National Student Financial Aid Scheme (NSFAS) beneficiaries.

According to a survey by the National Gambling Board, the most common reason for South Africans’ gambling was the “chance to win large sums of money.”

Second to this was “I needed the money”, a reason provided by 56% of respondents. Another 14% said they were gambling because they had lost their job.

South Africans wagered R1.5 trillion on gambling activities in 2024, with casinos and bookmakers generating R75 billion in revenue, while paying only R5 billion in tax.