The rise of survival gambling in South Africa's economic crisis

As South Africa faces ongoing economic challenges, a troubling trend has emerged with many citizens increasingly turning to gambling, not as a form of entertainment but as a desperate means of survival.

What was once considered a leisure activity has morphed into a coping mechanism for financial hardship, leading to an alarming uptick in problem gambling.

A popular betting site, BettaBets conducted a study during their Smart Money Management Workshop in Crossroads, Mpumalanga, revealing some concerning statistics about gambling.

A staggering 54% of participants admitted to using grant money to feed their gambling habits, a situation exacerbated by an absence of income opportunities.

With joblessness rampant, 89% of those surveyed reported being unemployed; many individuals feel that gambling could be their ticket to financial stability.

Weekend Argus sister paper, Saturday Star spoke to local punters and unveiled a trend revealing that they use their gambling winnings to sustain themselves, with each using R500 or more on gambling.

“I work, but I bet to gain extra money to buy things such as electricity, food and other essentials that I cannot afford with just my salary,” explained one participant.

Another shared, “I don't have any income, so I rely on odd jobs and betting to make ends meet.”

“At first it was for entertainment until I got a winning ticket; thus, when I started to play to make extra cash. The winnings help me a lot; I sometimes use the money to buy clothes. I spend R300 to R500,” said another punter.

Through these candid confessions, the harsh reality of South Africa’s economic climate has become starkly clear.

Sibongile Simelane-Quntana, Executive Director of the South African Responsible Gambling Foundation (SARGF), emphasised the gravity of the situation.

“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.”

It is explained that individuals increasingly gamble in pursuit of a secondary income; their intentions shift from casual betting to a perilous cycle of dependency.

The fallout from the Covid-19 pandemic further complicated the issue, as highlighted by Mathabo Sekhonyana, Chief Marketing Officer at BettaBets.

“The pandemic led to increased online gambling due to physical restrictions on betting shops. Many people turned to gambling as a financial escape due to job losses, leading to a rise in problem gambling. In response, regulators and operators introduced stricter responsible gambling measures, including affordability checks and enhanced player protection policies.”

Sekhonyana details that concerns within the community are deepening, as the results of their survey show that a significant number of respondents set no limits on their gambling expenditures.

Alarmingly, 40% admitted to having no spending limits, while 17% do not budget at all, practices that elevate the risk of addiction and financial strain.

Sekhonyana said they implement responsible gambling measures such as self-exclusion options, deposit limits, and partnerships with gambling support organisations.

“Additionally, awareness campaigns , the likes of smart money workshops, also educate punters on responsible gambling habits.”

Economic hardship breeds stress, which affects rational decision-making, according to Tamzin Stroucken, a wealth manager at Anchor.

In response to these concerning trends, organisations like BettaBets and Sun International say they are stepping up their commitment to responsible gambling, offering initiatives such as self-exclusion options and educational workshops aimed at fostering accountability among punters.

The SARGF also champions voluntary counselling and support systems for those grappling with gambling disorders, emphasising the need for awareness and intervention.

In addition, patients undergoing counselling can join the National Responsible Gambling Programme (NRGP Support Group).

Sun International, a South African gaming and hospitality company, responded to the prevalence of gambling and stated, “As a group, Sun International is proud of its legacy in responsible gaming. 25 years ago we founded the National Responsible Gambling Programme (NRGP), and today we are proud that the organisation has grown into the industry body that it now is. All of our gaming platforms continue to support the program to this day.”

anita.nkonki@inl.co.za