As South Africans grapple with the pressures of rising living costs, high unemployment, and economic uncertainty, more individuals are turning to gambling in the hopes of a quick financial fix. But short-term credit provider Atlas Finance is warning 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. The 2024 Old Mutual Savings and Investment Monitor shows, 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 earners earning between R8,000 and R15,000 per month, revealing a troubling reliance on gambling as a financial coping mechanism.
“Many South Africans are misled into believing that gambling can generate income or cover existing debts,” says Niresh Gopichand, Risk Director at Atlas Finance. “But in reality, this approach traps people in a dangerous cycle of debt.”
Insights from the South African Responsible Gambling Foundation (SARGF) reveal that gambling is no longer casual entertainment for many, it’s becoming a desperate attempt to survive. “Those seeking help were 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, SARGF has stated in media reports.
While the root causes of increased gambling include economic hardship, limited opportunity, and a lack of financial literacy, Gopichand stresses that more sustainable and constructive financial steps are available.
Below, he offers practical alternatives to avoid the debt trap and reduce financial vulnerability.
Smarter steps to improve financial health
- Responsible borrowing: Don’t 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’s necessary and what you can 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 support: If you’re overwhelmed by debt, options like debt consolidation or formal debt review can help make repayments more manageable and protect you from legal action. It’s 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.
- 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 doesn’t come from chance, it starts with small, realistic steps, not risky bets,” Gopichand concludes.