Gambling for quick cash in SA: the hidden risks and safer income solutions

This Responsible Gambling Month, there is focus on the perilous rise of gambling as a financial lifeline for many South Africans struggling to make ends meet.

With a growing number of individuals impacted by economic challenges, the gambling industry has managed to position itself as a seemingly viable solution for those eager to stretch their financial resources. However, the reality is that gambling can deepen financial woes, leading to a concerning cycle of debt and dependency.

According to JustMoney’s inaugural large-scale survey, Money & Me, an alarming 3% of respondents opt for online gambling, even when faced with other popular options for cutting costs. This trend is particularly pronounced among those earning less than R5 000 a month, who are four times more inclined to turn to gambling. Furthermore, men are twice as likely as women to choose this risky avenue.

“With 60% of our survey respondents reporting feelings of worry or anxiety about their financial circumstances, it’s no surprise that many are seeking out risky quick fixes,” explained Sarah Nicholson, Head of Customer Experience at JustMoney.co.za.

“The lure of attractive betting advertisements, charismatic influencer promotions, and a plethora of easily accessible apps can create a mirage of financial relief. Unfortunately, reckless gambling often leads to serious consequences, including debt accumulation, relationship strains, addiction, and even job loss.”

Smart Financial Alternatives

In response to these alarming trends, JustMoney has compiled a list of safer, low-risk alternatives to generate additional income, encouraging South Africans to reassess their financial strategies.

• Make every rand count: Track income and expenses meticulously to identify unnecessary spending and save effectively.
• Prioritise needs over wants: Focus on paying for essentials such as rent, groceries, and transportation.
• Use budgeting tools: Leverage free apps or simple spreadsheets to plan monthly budgets.
• Shop smartly: Prepare meal plans, create grocery lists, and cook in bulk to minimise expenses.
• Review recurring expenses: Cancel or renegotiate subscriptions and services that are underused.
• Consider second-hand options: Buy pre-loved items or swap with friends and family to save money.
• Avoid impulse purchases: Implement a wait period before buying non-essential items.
• Use loyalty programmes: Take advantage of cashback deals and loyalty points offered by various retailers.
• Limit energy and water use: Adopt energy-efficient habits to reduce monthly bills.

Side-hustle Success

Interestingly, the Money & Me survey found that 36% of respondents engage in side hustles to augment their incomes, and many aspire to do so but are uncertain where to start. JustMoney has a toolkit of suggestions for people keen to make extra money while avoiding the pitfalls of gambling:

• Freelance work: Use your skills in fields like tutoring, web development, or photography by seeking opportunities on platforms like LinkedIn and Upwork.
• Monetised hobbies: Transform hobbies such as baking or crafting into revenue streams through markets, social media, or online shops.
• Offering home services: Start a low-cost business in baby-sitting, pet care, or cleaning, using word-of-mouth for promotion.
• Renting out assets: Consider letting out spare rooms or household items to generate passive income.

The Consequences of Gambling

Even as gambling markets flourish, the repercussions for many individuals can be dire. Gamblers Anonymous South Africa defines a compulsive gambler as someone whose betting habits precipitate ongoing issues in various realms of their lives. Recognising this, JustMoney emphasises the importance of seeking help at the earliest signs of trouble.

“The sooner you reach out for help, the sooner you can regain control,” said Nicholson. “Don’t wait for gambling to take more than it already has.”

• Admit the problem: Acknowledge the challenges and confide in family or friends.
• Limit gambling funds: Work with your bank to impose spending limits and set critical bills on automatic payments.
• Cut down on access: Cancel credit cards and restrict cash availability; perhaps enlist a trusted person to manage finances.
• Address any debts incurred: Keep detailed records of what you owe and seek advice on repayment options.
• Request self-exclusion: This option halts all gambling activities, accessible through provincial gambling boards.
• Use support resources: Engage with helplines like the South African Responsible Gambling Foundation’s toll-free service for immediate assistance. Contact them toll-free on their counselling line on 0800 006 008, WhatsApp 076 675 0710, or email helpline@responsiblegambling.org.za.

While betting may provide the illusion of financial relief, with the right strategies in place, South Africans can boost their income through safer means. Seek alternative ways to stretch your money instead of gambling, and reach out for help if you are addicted, advises JustMoney.