South Africa's booming online gambling industry is raising new concerns about the financial well-being of young people, as experts warn that small, frequent bets are quietly draining already stretched household budgets.
According to the National Gambling Board (NGB), South Africans wagered approximately R1.5 trillion during the 2024/25 financial year, generating gross gambling revenues of approximately R74.9 billion. Betting now represents the largest segment of the country's gambling industry, driven by widespread smartphone penetration, online platforms, aggressive advertising and growing economic pressures.
While headlines often focus on the harms caused by high-stakes gambling, financial education advocates say the bigger risk for many young South Africans lies in the cumulative effect of relatively small stakes. Small amounts like R20, R50 or R100 held repeatedly can be used to fund money that would otherwise cover essential expenses such as transport, mobile data, groceries, loan payments or savings.
“When money is tight, gambling can seem like a shortcut,” says Tshepo Kagpane, head of product at free digital financial education platform Blackbullion South Africa. “But a R100 bet could be the same money that could have paid for data, transport, food, or the start of an emergency buffer. Repeated over and over again, it becomes a serious financial leak.”
The warning comes as Blackbullion South Africa's latest ZAKA Index (2025) highlights the financial stress facing young adults across the country. The Recurring Cost of Living Study found that 82% of South Africans between the ages of 18 and 35 earn less than R6,000 per month.
Food is the biggest monthly expense for more than half (51%) of respondents, while a similar proportion say they experience financial stress every day. Cagapan says four out of five respondents reported they did not have enough money so they skipped meals or delayed important payments.
Against this backdrop, Kegpen argues that even modest amounts of money can make a significant difference if managed differently.
“If you save R100 once a week, it grows to R5,200 in a year before interest. This could support job-finding costs, course materials, transportation, or an emergency fund. If that same R100 is gambled away, most likely it is gone, and the emotional reaction is often to chase the loss with more money,” says Kagapane.
Researchers are also becoming concerned about how gambling-related behaviors are developing among younger audiences. Wits University has previously highlighted the increasing presence of gambling-like mechanics in digital gaming environments, including virtual currencies, paid random prizes, reward loops and time-limited purchase incentives.
Financial experts warn that these features could normalize gambling-style behavior long before young people fully understand the financial consequences associated with risk-taking.
“Most young people are not careless with money. Many are trying to survive in a high-cost environment with little margin for error. The starting point is honest education about risks, trade-offs and what money can become if preserved rather than chased,” says Kegapane.
Lena De Beer, founder and CEO of Wafunda, says gambling cannot be viewed in isolation from the broader financial pressures facing South African youth.
“Young people are living through a difficult financial environment, and many are looking for creative ways to supplement limited income or diversify income. This is where financial literacy plays a vital role. Young people need the knowledge and confidence to recognize the risks of behavior such as gambling and understand the long-term impact of their financial decisions,” says De Beer.
Wafanda is the exclusive South African partner of Blackbullion Global, providing free, youth-focused financial education through the Blackbullion platform to help young people build essential money skills and confidence.
For young people concerned about their gambling habits, De Beers recommends taking practical steps before gambling starts to impact their financial stability.
These include tracking betting spending through bank statements and e-wallet transactions, setting aside money for essentials like rent, food, transportation and loan payments before payday and removing easy access to gambling by deleting betting apps, deleting saved payment details and unsubscribing from promotional messages.
She also encourages the use of self-exclusion tools offered by licensed gambling operators, talking openly with trusted friends, family members or counselors, and resisting the temptation to pursue losses.
Help is available through the South African Responsible Gambling Foundation's National Responsible Gambling Programme, which offers free, confidential support through its 24-hour counseling line on 0800 006 008, she says.
“By listening to what young people are experiencing, we want to better serve them. The more we understand about their financial realities, the better we can create tools and content that will help them make smarter, more confident decisions,” says De Beer.
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