Gambling is robbing South Africans of their financial future, warns new report

Numbers released recently around the problem of particularly online gambling in South Africa has raised concern all the way up to Parliament.

The call for urgent reform comes against the backdrop of massive industry growth.

RELATED: Opposition parties demand crackdown on online gambling, slam govt inaction

Now, a new study by Experian and Vault22 shows that South Africans spent R1.5 TRILLION on gambling in 2024 - roughly 65% of total outstanding consumer debt.

The most financially exposed groups are younger and mid-affluent consumers - especially those in aspirational segments.

Stephen Grootes discusses the research with Tando Ngibe, senior manager at Budget Insurance.

Nbige highlights the finding that the rateof default on credit is significantly higher amongst gamblers than non-gamblers.

On top of this, gamblers are also starting to default at a quicker rate.

"This speaks to an even bigger problem, that money which should be going to financial obligations is starting to possibly be channelled towards gambling."

The mindset of 'I don't only lose, I also win' is a big contributor to this growing challenge, Nbige believes.

He cites selective reporting and sharing of personal gambling stories as factors that help to disguise the stark truth.

"Gamblers tend to highlight wins because it's most socially rewarding and they reinforce a positive message. Losses are generally hidden - not a lot of people come out and say they lost a certain amount of money before they finally won."

'I think it's important for South Africans to understand this... and it is our job to ensure that we educate the public that gambling is not an investment strategy."

Scroll up to the audio player to listen to the full conversation