By Bertie Nel,
When money is tight, the promise of a quick win can feel like a lifeline. A bet on a phone takes seconds, costs little to start, and is available around the clock. That convenience is what makes gambling such a risk to long-term financial security.
The recently released Rogerwilco 2026 Township Customer Experience (CX) Report found that more than half of stokvel savers turned to gambling at least once in the past year because of financial distress. Stokvel members are among the most disciplined savers in the country. They contribute regularly and plan together. If they reach for a bet when pressure builds, the issue is not character, but rather illustrates how little room many households have when something goes wrong.
The risk is not confined to township communities. According to the National Gambling Board, South Africans wagered R1.5 trillion in the 2024/25 financial year, a 31.3% increase compared to the previous year. The country has one of the highest online gambling rates globally among people aged 16 and older with a 550% increase in online gambling over the past four years. Irrespective of whether someone earns a modest income or a high one, the mechanics of the problem are the same.
Why the odds work against you
Gambling is structured so that the operator wins over time. Someone may win occasionally, but across many bets they will on average lose more than they bet. Unlike saving or investing, gambling creates no value and earns no return. Money wagered is simply spent, and no amount of planning changes the odds.
The financial damage can build quickly. After a loss, the urge to win it back with a bigger bet is strong, and losses mount quickly. Credit and short-term loans can turn one bad week into months of repayments with interest. The emergency money meant for medical bills, a broken-down car, or school fees is drained, so the next emergency leads to more debt, or another bet.
Money diverted from the future, or preserved savings withdrawn early, loses decades of compounding growth that cannot easily be rebuilt. And because betting happens on a phone, losses can also stay hidden from family members until the damage is significant.
Why it’s so hard to stop
Gambling is designed to keep people playing. Bets start from as little as R1, with fast-moving games and near-miss outcomes, where a bet only just fails. This triggers the brain’s reward system in a way that resembles substance addiction. The thrill fades quickly, which prompts another bet. For many people, gambling also masks stress, anxiety, or low mood, so the habit deepens the worries it was meant to relieve. The South African Responsible Gambling Foundation reports that about 40% of helpline callers say they cannot stop without professional help. Willpower alone is rarely enough, which is why early support matters.
Practical steps that help
Financial security can be rebuilt, and most protective steps are simple. The first priority is to build a small buffer. Even R50 or R100 a week set aside reduces the pressure that makes a risky bet seem attractive.
Next, separate the money. Move savings and retirement funds out of the account or card used for everyday spending, and automate contributions on payday.
Use the tools that are available. Betting platforms offer deposit limits and self-exclusion, and it’s worth asking your bank whether gambling transactions can be blocked.
Know the warning signs. Hiding losses, borrowing to bet, betting more to win money back, and missing bills are signals to act early and get help.
Finally, talk to someone. A trusted family member, a financial adviser or the South African Responsible Gambling Foundation (toll-free 0800 006 008) can help, and the sooner the conversation happens, the easier recovery is.
The solution to South Africa’s gambling problem lies in prevention and support rather than blame. Employers, fund providers, and financial advisers all have a role in making it easier to talk about money before a crisis hits. That means practical financial education at work, not just at retirement; access to advice at every income level; and products that make emergency saving easy, so that no one has to choose between a bill and a gamble.
People who feel financially secure are less likely to take desperate risks, and people who ask for help early have far better outcomes. Ultimately, a small emergency fund, a trusted adviser, and an honest conversation are far cheaper than the cost of a gambling problem.
By Bertie Nel, Head of Financial Planning and Advice at Momentum
