Although some people win big, gambling is more likely to make you sink deeper into debt.
Many South African consumers have turned to gambling to fix their finances, but unfortunately, experts say this is definitely not the answer. All income groups are suffering financially and battling with debt, and cannot be blamed for thinking they will try just once to win a little money.
As consumers grapple with the pressure of rising living costs, high unemployment and economic uncertainty, more people are turning to gambling in the hopes of a quick financial fix. However, Niresh Gopichand, risk director at Atlas Finance, warns that gambling is a dangerous illusion that often worsens financial distress rather than solving it.
According to the National Gambling Board’s latest annual report, South Africans wagered R1.14 trillion during the financial year that ended on 31 March 2024. In addition, the 2024 Old Mutual Savings and Investment Monitor shows that 36% of South Africans who gamble say they do so to pay off debts or cover living expenses.
This figure climbs to 41% among low-income consumers earning between R8 000 and R15 000 per month, revealing a troubling reliance on gambling as a financial coping mechanism.
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Gambling not the answer
“Many South Africans are misled into believing that gambling can generate income or cover existing debts but in reality, this approach traps people in a dangerous cycle of debt.”
The South African Responsible Gambling Foundation (SARGF) also says that gambling is no longer casual entertainment for many consumers but is becoming a desperate attempt to survive.
“People seeking help are either employed full-time, part-time or self-employed, which tells us that their gambling was not for entertainment but became a problem as soon as their gambling intent became a source of a secondary income due to the tough socio-economic conditions they found themselves in,” Sibongile Simelane-Quntana of the SARGF said in media reports.
Gopichand says while the root causes of increased gambling include economic hardship, limited opportunity and a lack of financial literacy, he stresses that more sustainable and constructive financial steps are available.
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How to avoid debt trap without depending on gambling wins
He offers these practical alternatives to avoid the debt trap and reduce financial vulnerability:
- Responsible borrowing: Do not borrow to gamble. Short-term loans are meant to cover unexpected expenses, such as urgent medical bills or essential home repairs. Always assess your need, borrow only what you need and what you can afford to pay back. Also ensure your credit provider is registered with the National Credit Regulator (NCR).
- Community savings: Join or start a stokvel. These savings clubs provide both financial discipline and social support, encouraging members to save consistently and avoid risky financial decisions.
- Seek financial advice: If you are overwhelmed by debt, options like debt consolidation or formal debt review can help make repayments more manageable and protect you from legal action. It is important to speak to a registered financial advisor or debt counsellor who can guide you through the best solution for your situation and help you avoid costly mistakes. Gambling will not solve indebtedness, Gopichand emphasises.
- Start an emergency savings fund: Start small but start now. Even putting aside R50 a week can build a basic safety net over time, helping you avoid desperation-driven decisions in the future.
“Financial wellbeing does not come from chance but starts with small, realistic steps, not risky bets,” Gopichand says.
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Surveys show that gambling has become a problem in SA
Vuyokazi Mabude, head of knowledge and insights at Old Mutual, points out that gambling was also an area of concern identified in the 2025 Old Mutual Savings & Investment Monitor, an annual study that tracks the financial attitudes, behaviours and priorities of working South Africans earning a minimum of R8 000 per month.
He says 52% of working South Africans reported gambling, with 40% admitting they do so in the hope of covering expenses or repaying debt. “This trend suggests that while some are making proactive choices, others remain vulnerable and are turning to risky behaviour to bridge financial gaps.”
Neil Roets, CEO of Debt Rescue, also noted the problem gambling has become. “On the back of the financial travails that plague millions of South African households, a mammoth new social ill has reared its ugly head and it is far bigger than most realise.”
He points out that online gambling has seen a 550% increase in only four years with no sign of stopping, reaching a turnover of R1.14-trillion in the 2023/24 year, or nearly 17% of gross domestic product (GDP).
The best available research shows that it is mainly low-income South Africans who gamble away an astonishing share of their monthly pay, out of sheer desperation, undoubtedly hoping for big winnings that will somehow transform their circumstances.
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Then there are the hidden costs
John Manyike, head of financial education at Old Mutual also points out the hidden costs of gambling. South Africans place over R1 trillion in bets annually, with R700 billion spent on sports betting alone.
“For many, particularly those with limited financial resources, the appeal of a big win can be incredibly tempting. However, the reality is often more complex. Instead of earning easy money, people who indulge in excessive gambling frequently face financial strain.”
In March, an online betting platform shared a story of someone turning a R4 wager into an astounding R83 701.54. But while stories like this grab attention, the increase in online sports betting also brings important considerations.
According to the National Gambling Board’s 2022/23 gambling statistics, sports betting in South Africa expanded significantly over the past decade, growing from under 10% of the gambling sector in 2009/10 to over half in 2022/23.
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38% of gamblers need winnings to pay off debt
Manyike says what stands out is that 36% of people who gamble do it to pay off debts or cover expenses and among low-income earners earning between R8 000 and R15 000 per month, this figure increases to 41%, highlighting a concerning trend.
Despite the rising cost of living and economic pressure, gambling has gained popularity, particularly due to the widespread use of mobile phones and internet access. Manyike says this is especially evident among young African men. Advertising from betting companies further fuels this trend, increasing participation within this demographic.
“This can be risky, particularly for young people and low-income earners, who may see gambling as a way to improve their financial situation. However, losses can add up quickly, sometimes leading to financial stress.
“In a country already facing high unemployment and economic challenges, it is important to be aware of the potential financial pitfalls of gambling.”
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Unlike investing, gambling based purely on luck
He points out that unlike investing, gambling is based purely on luck, although many believe they can develop a winning approach. “The truth is that the house edge ensures that bookmakers maintain a profit over time.
“For instance, when odds are at -110 on both sides of a bet, a better must risk R110 to win R100, meaning even skilled bettors face a statistical disadvantage in the long run. The belief that the system can be beaten can lead to risky financial decisions.
“Beyond financial losses, gambling can also take a psychological toll. It can lead to stress, anxiety and even a cycle of chasing previous bets in the hope of recovering losses.”
The University of Cape Town’s department of psychiatry and mental health noted a significant association between suicidality and pathological gambling in a study in 2016. It found that pathological gamblers were five to 10 times more likely to have a history of suicide attempts than non-gamblers.
In addition, gambling does not just affect individuals. “It can have ripple effects on families, sometimes resulting in financial strain for loved ones. While gambling is legal, many people do not fully understand the long-term risks involved due to a lack of financial education.”
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If your gambling is pushing up your debt, seek help
People who feel their gambling habits might be affecting their financial well-being should find help, Manyike says. The South African Responsible Gambling Foundation offers free and confidential counselling services, while professional counsellors who specialise in gambling addiction can provide guidance.
