The Contribution of Sport Betting to the South African Gross Domestic Products

Description

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Abstract

An attempt was made to determine the relationship between the revenue made in sport betting within South Africa and the country`s gross domestic product. The aim was to determine whether sport betting is a significant contributor gross domestic product comparing to other GDP contributors.

Sport betting is deemed to be addictive and not good for public, however, it has been growing dramatically for the past few decades and its involvement in economic activities has been noticeable. The OLS method was used to generate the regression results and autocorrelation and heteroskedasticity were carried out.

The analysis and interpretation of results indicated sport betting is not a significant contributor to GDP but has a positive relationship with GDP.

Introduction

Sport is no longer an activity that people engage in just for the sake of passing time but it has evolved to be a means of living, competitive business and professional career industry.

There are different literatures that have confirmed the view. “Sport is no longer only seen as a relaxing way to exert energy and interact with friends and families but it is a universal language that can bring nations together, educate individuals, entertain millions and in the past decade a business that can generate billions.

Sport has grown into a multi-dollar industry that has generated millions for players, sponsors and sport partnerships” (Wyk, 2008).

A proof that sport has evolved over time into a multi-billion dollar activity, can be seen through an example of the prize money being put in to the game. An early Wimbledon competition, a prestigious tennis competition, which was played in 1877 and won by Spencer Gore, had prize money of $18 for the men category.

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