Latest news with #R700
IOL News
11 hours ago
- Business
- IOL News
Understanding the hidden financial risks of gambling
Explore the alarming rise of gambling in South Africa, where over R1 trillion is wagered annually. This article delves into the hidden financial risks, particularly for low-income earners, and highlights the psychological toll of gambling addiction. Image: File picture. 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, those who indulge in excessive gambling frequently face financial strain. In March, an online betting platform shared a story of someone turning an R4 wager into an astounding R83,701.54. While stories like this grab attention, the rise in online sports betting also brings important considerations. According to the National Gambling Board's 2022/23 gambling statistics, sports betting in South Africa has expanded significantly over the past decade, growing from under 10% of the gambling sector in 2009/10 to over half in 2022/23. What stands out is that 36% of those who gamble do so to pay off debts or cover expenses, according to the 2024 Old Mutual Savings and Investment Monitor. Among low-income earners (those earning between R8,000 and R15,000 per month), this figure rises to 41%, highlighting a concerning trend. Understanding the risks Despite rising costs of living and economic pressures, gambling has gained popularity, particularly due to the widespread use of mobile phones and internet access. 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's important to be aware of the potential financial pitfalls of gambling. A game of chance, not strategy Unlike investing, gambling is based purely on luck, yet 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 bettor 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. A 2016 study by the University of Cape Town's Department of Psychiatry and Mental Health noted a significant association between suicidality and pathological gambling. It found that pathological gamblers were five to ten times more likely to have a history of suicide attempts than non-gamblers. Furthermore, gambling doesn't just affect individuals—it can have ripple effects on families, sometimes resulting in financial strain for loved ones. While gambling is legal, many people don't fully understand the long-term risks involved due to a lack of financial education. For those who feel their gambling habits might be affecting their financial well-being, Manyike advises seeking support. The South African Responsible Gambling Foundation offers free and confidential counselling services. Additionally, professional counsellors who specialise in gambling addiction can provide guidance. Gambling is not a reliable source of income, and without careful management, it can lead to serious financial setbacks. By increasing financial awareness and promoting responsible gambling, we can help people make informed decisions and avoid unnecessary financial risks. * Manyike is the head of financial education at Old Mutual. PERSONAL FINANCE
The Citizen
17 hours ago
- Business
- The Citizen
Look north for affordable Cape Town property under R1m
While much is made of the high property prices in Cape Town, there are in fact still many areas where you can purchase below R1m. Properties below R1.21m are also exempt from transfer duty, thus providing a considerable saving, especially for first home buyers, according to the Seeff Property Group. The northern suburbs of Cape Town is a great area to look for affordability, says Susan McCarthy, manager for Seeff Brackenfell. These neighbourhoods offer good access to transport networks, schools, and general amenities. This combines with the affordability factor, making it easier for first time buyers to get onto the property ladder, securing their own home, and building wealth. If at a later stage they need to move on to a bigger property, it always leaves the option to retain the property as an investment, given the high demand for rentals, or they could sell it at a profit to use as a deposit for their next property purchase. She says neighbourhoods such as Kraaifontein and Kuils River are a good choice for good value as you can find sectional title property in the R700,000 to R1.2m price range. In Eerste River for example, the new Chardonnay Court offers two bedroomed units with modern finishes, a solar geyser, private outdoor braai area, and a parking bay for just R949,900. It is also a neighbourhood with good amenities and access to major routes with transport such as buses, taxis, and a train station on hand. There are schools, shopping centres, medical care, places of worship, a police station, sport grounds and more. The area is popular with first-time buyers. Lightstone data shows that 37% of recent buyers are under 35-years, and a further 44% between 36-49 years. Property values increased by around 70% over the last ten years, with a significant growth spurt during the high-demand Covid boom period, thus making these a good investment. She says they are also great for rental investments. Overall, first home buyers make up a considerable portion of total home sales across the country. According to mortgage originator, ooba, there has been a slight uptick in first-time buying in the first quarter, accounting for some 46.5% of home loan applications. The survey also shows that favourable mortgage lending conditions continue to support first-time buyers, and most banks still offer full bonds to qualifying buyers, depending on the property. Young buyers are not only purchasing for their own use, but there is a growing appetite to invest in property for the rental market. Ooba for example also reported a significant rise in investment property applications from younger buyers, rising from around 3% in 2019 to 9% last year. Issued by Gina Meintjes
The Citizen
2 days ago
- Business
- The Citizen
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, those who indulge in excessive gambling frequently face financial strain, says John Manyike, Head of Financial Education at Old Mutual. In March, an online betting platform shared a story of someone turning a R4 wager into an astounding R83,701.54. While stories like this grab attention, the rise in online sports betting also brings important considerations. According to the National Gambling Board's 2022/23 gambling statistics, sports betting in South Africa has expanded significantly over the past decade, growing from under 10% of the gambling sector in 2009/10 to over half in 2022/23. 'What stands out is that 36% of those who gamble do so to pay off debts or cover expenses,' explains Manyike, referring to the 2024 Old Mutual Savings and Investment Monitor. Among low-income earners (those earning between R8,000 and R15,000 per month), this figure rises to 41%, highlighting a concerning trend. Understanding the risks Despite rising costs of living and economic pressures, gambling has gained popularity, particularly due to the widespread use of mobile phones and internet access. 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,' says Manyike. However, he notes that losses can add up quickly, sometimes leading to financial stress. 'In a country already facing high unemployment and economic challenges, it's important to be aware of the potential financial pitfalls of gambling.' A game of chance, not strategy Unlike investing, gambling is based purely on luck, yet 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 bettor must risk R110 to win R100, meaning even skilled bettors face a statistical disadvantage in the long run. The belief that that the system can be beaten can lead to risky financial decisions. 'Beyond financial losses, gambling can also take a psychological toll,' says Manyike. 'It can lead to stress, anxiety, and even a cycle of chasing previous bets in the hope of recovering losses.' A 2016 study by the University of Cape Town's Department of Psychiatry and Mental Health noted a significant association between suicidality and pathological gambling. It found that pathological gamblers were five to ten times more likely to have a history of suicide attempts than non-gamblers. Furthermore, gambling doesn't just affect individuals—it can have ripple effects on families, sometimes resulting in financial strain for loved ones. 'While gambling is legal,' Manyike points out, 'many people don't fully understand the long-term risks involved due to a lack of financial education.' For those who feel their gambling habits might be affecting their financial well-being, Manyike advises seeking support. 'The South African Responsible Gambling Foundation offers free and confidential counselling services,' he says. Additionally, professional counsellors who specialise in gambling addiction can provide guidance. 'Gambling is not a reliable source of income, and without careful management, it can lead to serious financial setbacks,' concludes Manyike. 'By increasing financial awareness and promoting responsible gambling, we can help people make informed decisions and avoid unnecessary financial risks.' At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
2 days ago
- Business
- IOL News
The hidden costs of SA's gambling crisis
In March, an online betting platform shared a story of someone turning a R4 wager into an astounding R83,701.54. While stories like this grab attention, the rise in online sports betting also brings important considerations. South Africans place more than 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, those who indulge in excessive gambling frequently face financial strain, said John Manyike, Head of Financial Education at Old Mutual. According to the National Gambling Board's 2022/23 gambling statistics, sports betting in South Africa has expanded significantly over the past decade, growing from under 10% of the gambling sector in 2009/10 to over half in 2022/23. 'What stands out is that 36% of those who gamble do so to pay off debts or cover expenses,' explained Manyike, referring to the 2024 Old Mutual Savings and Investment Monitor. Among low-income earners (those earning between R8,000 and R15,000 per month), this figure rises to 41%, highlighting a concerning trend. Despite rising costs of living and economic pressures, gambling has gained popularity, particularly due to the widespread use of mobile phones and internet access. 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,' says Manyike. However, he notes that losses can add up quickly, sometimes leading to financial stress. 'In a country already facing high unemployment and economic challenges, it's important to be aware of the potential financial pitfalls of gambling.' Unlike investing, gambling is based purely on luck, yet 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 bettor must risk R110 to win R100, meaning even skilled bettors face a statistical disadvantage in the long run. The belief that that the system can be beaten can lead to risky financial decisions. 'Beyond financial losses, gambling can also take a psychological toll,' said Manyike. 'It can lead to stress, anxiety, and even a cycle of chasing previous bets in the hope of recovering losses.' A 2016 study by the University of Cape Town's Department of Psychiatry and Mental Health noted a significant association between suicidality and pathological gambling. It found that pathological gamblers were five to ten times more likely to have a history of suicide attempts than non-gamblers. Furthermore, gambling doesn't just affect individuals—it can have ripple effects on families, sometimes resulting in financial strain for loved ones. 'While gambling is legal many people don't fully understand the long-term risks involved due to a lack of financial education.' For those who feel their gambling habits might be affecting their financial well-being, Manyike advises seeking support. 'The South African Responsible Gambling Foundation offers free and confidential counselling services,' he added. Additionally, professional counsellors who specialise in gambling addiction can provide guidance. 'Gambling is not a reliable source of income, and without careful management, it can lead to serious financial setbacks. By increasing financial awareness and promoting responsible gambling, we can help people make informed decisions and avoid unnecessary financial risks,' Manyike concluded.
IOL News
25-05-2025
- Business
- IOL News
Durban paint company appeals Labour Court ruling on unfair maternity leave discrimination
A Durban paint company will ask the labour court for leave to appeal against a finding that it had unfairly discriminated against a pregnant worker by sending her on maternity leave without pay, three months ahead of her actual pregnancy leave starting. Image: File A Durban paint company, who was ordered to pay a former worker more than R700,000 after the Labour Court found that it had unfairly discriminated against the pregnant woman by sending her early on maternity leave without pay, is set on appealing the ruling and will argue that the court has made several erroneous findings against it. Induradec Coatings Pty in Pinetown has been ordered to pay Tiisetso Daisy Moleme, a chemist working for the company, R724,000 in compensation, which is equivalent to 11 months' salary. The paint company has meanwhile filed an application for leave to appeal the ruling. As Moleme's job entailed the development of products and research, she became concerned about the chemicals with which she had to work when she became pregnant. After telling her employer that she was pregnant, she expressed her concern to the human resources department and requested to be moved out of the laboratory. She said she was promised alternative duties in the meantime, but this never happened. Instead, she was told that she was being placed on early maternity leave, without pay. The company explained to Moleme that "this is best for the benefit of both you and your unborn child". The court ruled that Moleme was unfairly discriminated against on the grounds of pregnancy, but it commented that the company did not act out of malice when it placed her on unpaid, early pregnancy leave. The court also found that the company had failed to establish that Moleme's removal from the lab for the duration of her pregnancy had been necessary. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ In its grounds for asking for leave to appeal, the company questioned this and other findings and said the court failed to consider that Moleme was the one who asked to be removed from the laboratory. It questioned how the court could find that Induradec Coatings's conduct was discriminatory under these circumstances, especially as there was no request from Moleme to be placed back in the lab. The paint company said the court also erred in dealing with the aspect of compensation to be paid to Moleme. It awarded more than R700,000 in compensation, under circumstances where she would have had less than three months to work before she went on pregnancy leave. She would then have faced the same situation (after going on normal pregnancy leave) as she would have had to obtain UIF payments instead of her salary, the company reasoned. It questioned how the court could have found that the paint company did not act in bad faith towards Moleme, yet it was ordered to pay her 11 months' salary. This, it said, under circumstances where she only lost out on three months' pay before going on maternity leave. The paint company added that the court had failed to consider the fact that it had taken steps to find out how to deal with the situation. It pointed out in its application that it has checked with two doctors as well as an occupational health and safety practitioner on an alternative mechanism to be used by Moleme so that she could continue her work in the lab. No date has yet been set down for the leave to appeal application.
