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IOL News
16 hours ago
- Business
- IOL News
Rolling the dice: Why South African workers are turning to gambling
As inflation and rising debt levels across the country continue to soar, a new report has revealed that more than half of South Africa's working population is turning to gambling Image: Supplied As inflation and rising debt levels across the country continue to soar, a new report has revealed that more than half of South Africa's working population is turning to gambling in search of financial relief. According to the 2025 Old Mutual Savings and Investment Monitor (OMSIM) a report that tracks the shifting financial attitudes and behaviours of working South Africans, around 52% of employed adults participate in gambling. "A staggering 52% of working South Africans gamble, with incidence being highest among 30 – 49 year-olds (58%) and men (57%)," the report noted. According to the National Gambling Board, South Africans spent R1.1 trillion on gambling from April 2023 to March 2024. During this time, gambling revenue increased by 25.7% to R59.3 billion. "Of more concern is the fact that 40% of working South Africans acknowledge they gamble frequently, hoping to make money that can cover some of their expenses/debt. "This is up from the 36% recorded in the last measure, and more prevalent among lower-income earners". Many respondents said the possibility of earning extra income was a primary motivation for gambling, especially among those earning between R8,000 and R29,000 per month. The report also highlighted the growing popularity of online gambling, with 77% of gamblers using betting apps and 49% gambling via websites. "Gambling is very much an online pursuit, be that via an App or directly on an online betting website". "Amongst gamblers, Sportsbetting ranks as the highest type of gambling at 61%, followed by Lotto (53%) and Slots (52%). Just over 6 in 10 gamblers gamble at least once a week (62%) – with close to 4 in 10 gambling even more frequently." The report also noted that one in five gamblers (19%) reported borrowing money, using credit, or selling possessions to fund their gambling. "Worrying is that 1 in 5 gamblers have had to borrow, use credit or sell something to fund their gambling, and 1 in 4 have found themselves in financial difficulty as a result of their gambling," the report found. IOL Business [email protected] Get your news on the go, click here to join the IOL News WhatsApp channel
The Citizen
2 days ago
- Business
- The Citizen
Almost half of South Africa's working women gamble their hard-earned money
Most women gamble as a way to make additional income. It is difficult to tell if South Africa has a gambling problem or a poverty problem. The number of gamblers in the country can be viewed as a sign of people struggling to make ends meet. A report by Old Mutual has revealed that working women have joined the gambling industry for different reasons. Old Mutual is a financial services company that offers products such as savings, investments, insurance, and retirement planning. To celebrate Women's Month, they have partnered with the Johannesburg Stock Exchange (JSE) to run the SheInvests campaign, aiming to enhance financial literacy among women. Gambling as a solution As part of the campaign, Old Mutual released the Old Mutual Savings and Investment Monitor (OMSIM) report that tracks the shifting attitudes and behaviours of the working class. Vuyokazi Mabude, Head of Knowledge & Insights at Old Mutual, unpacked the report's findings on Wednesday in Gauteng. One of the most concerning findings of the report is how 46% of working women who took part in the survey said they take part in gambling. Out of that 46%, 52% of the women said they gamble as a way to make additional income, while 34% gamble frequently, hoping to make money that can cover some of their expenses or debt. ALSO READ: Here's why gambling can't help you get rid of debt Gambling is a problem Mabude highlighted that 19% of the women who reported they are gambling said they have had to borrow money, use credit, or sell something to gamble. While 24% said they have found themselves in financial difficulties because of gambling. Minister of Trade, Industry and Competition (DTIC) Parks Tau previously said there are plans to curb the growing rate of gambling, especially illegal online gambling. These plans include limiting gambling advertisements. The report focuses on the working class between the ages of 18 and 65 who earn R8 000 and above. Women make up 45% of the sample. The data was collected between 17 April and 12 May 2025, and it was reweighted according to the income and demographic profiles of the working class as per the UNISA Bureau of Market Research. Single mothers While unpacking the findings, she highlighted that one in three women is a single mother, which makes things a bit harder for them. 'Women are experiencing greater strain than the broader market. The proportion of women who are considerably financially stressed has risen from 39% to 43%, with stress levels climbing to 49% among single mothers, significantly higher than the national average,' added Mabude. Women cited several reasons for their financial stress, including insufficient income to cover all expenses, excessive debt, high living costs, and concerns about income security. ALSO READ: Gambling addiction referrals rise 40% as billions spent on betting advertising Sandwich generation More women than men are part of the sandwich generation. These are people who are supporting not only children but also parents and/or other older dependents. 'A higher percentage of working women fall into the sandwich generation category than men, and even more so for single mothers at 61%.' More women have also become Poly-Jobbers, according to the report. These are people who are side-hustling, freelancing and doing after-hours work in addition to their regular job. 47% of these women own a part-time business, while 35% earn an income from social media as influencers. Debt levels Moving on to debt levels, Mabude noted that most women have lower debt levels than they did a year ago. However, they continuously worry about debt. The report shows that 17% of working single mothers took out a loan to consolidate their debt. She noted that most women struggle with overspending, as the report revealed that 70% of working women often or sometimes overspend. The reason behind overspending is impulsive buying. NOW READ: SA consumers prioritise lifestyle over essentials
The Citizen
6 days ago
- Business
- The Citizen
Here's why gambling can't help you get rid of debt
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. ALSO READ: Gambling addiction referrals rise 40% as billions spent on betting advertising 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. ALSO READ: Online gambling and betting advertising non-compliant with Gambling Act — minister 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). 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. 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. 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. ALSO READ: Did you know online gambling is illegal in SA? Here are plans to stop it 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. ALSO READ: Gambling addiction and the issue of accountability 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. ALSO READ: R1.1 trillion worth of online bets in a year: Does SA need to rein in digital gambling? 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.' ALSO READ: 'Let's make gambling safer': New bill targets unfair online gambling practices 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.' ALSO READ: WATCH: Women and pensioners among 'vulnerable' groups, says Gauteng Gambling Board 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.
