As gambling continues to tighten its grip on South Africa, concern is mounting over the growing number of students using their financial aid allowances to fund betting habits.
What was meant to remove barriers to higher education is now, in some cases, being diverted to online betting and gambling, raising concerns about the long-term impact on students’ academic performance, financial stability, and mental well-being.
In response to the severity of the issue, the National Student Financial Aid Scheme (NSFAS) and the National Gambling Board (NGB) have joined forces to raise awareness at tertiary institutions, protect students from gambling-related harm, and safeguard public funds allocated for education.
Research points to a combination of financial pressure, aggressive digital advertising, easy online access, and targeted promotional offers as key drivers behind increased gambling participation among young people.
For students already navigating academic demands and economic hardship, the promise of quick money can appear tempting.
NSFAS told the Saturday Star that although students receive the funds directly, the allowances are strictly meant for educational and essential living expenses.
“NSFAS provides financial aid to support students in meeting their academic needs, including accommodation, food, learning materials, and other study-related expenses. While NSFAS does not control every individual transaction made by students, the funds are strictly meant for educational and living expenses related to their studies. Using these funds for activities such as gambling is inconsistent with the purpose for which the allowances are provided.”
While there are currently no regulatory measures controlling how students spend their allowances, the scheme is taking the issue seriously.
“There are currently no regulatory measures in place to control how students spend their allowances. However, NSFAS has been engaging with students and student leadership structures to encourage responsible use of these funds, improve accountability, and reduce misuse,” the organisation said.
“NSFAS is also considering measures to strengthen its monitoring processes to better ensure that allowances are used for their intended purpose, supporting students throughout their academic journey.”
Acting NSFAS CEO Waseem Carrim said the diversion of funds to gambling could undermine students’ futures.
“NSFAS funding is intended to support students’ educational journey and essential living needs. When these funds are diverted to gambling, it can undermine academic success and long-term financial well-being. This partnership focuses on prevention, awareness, and empowering students to make informed choices that support their future.”
The National Gambling Board echoed the concern, emphasizing its mandate to ensure gambling operates fairly and in accordance with national laws, while protecting vulnerable groups.
Acting NGB CEO Lungile Dukwana said the partnership would prioritise harm reduction among young people.
“This partnership prioritises the protection of young people through harm reduction approaches that prevent the development of harmful gambling behaviours. Particular attention will be given to the growing normalisation of gambling through digital advertising platforms, social media, and mobile applications, which increasingly affects students.”
Financial experts say the issue reflects broader societal patterns.
Salem Nyati, Consumer Financial Education Specialist at Momentum Group Foundation, believes young people are modelling what they see around them.
“This is a reflection of the society we live in. They are simply mimicking the behaviour they are learning from the adults around them, that attempting to get quick money is a possible solution,” she said.
Nyati noted that many students receiving stipends are already under immense financial strain, often expected to support their families despite limited resources. With constant exposure to betting advertisements on their smartphones, they are particularly vulnerable to developing harmful financial habits before achieving income stability or financial literacy.
She cautioned against the illusion of easy wealth.
“Gambling is designed so the house always wins,” Nyati warned, adding that financial freedom cannot come from “throwing it all away.”
Social Worker and SACAP Subject Matter Expert Mandy Stokes said smartphones have made gambling almost unavoidable for young people.
“Young people have smartphones which means online gaming, sports betting, and slots are easily accessible. This ease of access combines with aggressive advertising and sign-up bonuses that are interspersed between social media posts and threads. It is easier to default to your phone than face the discomfort of finding your way around your peer group,” she explained.
Stokes added that research consistently shows gambling harm is concentrated among younger and less affluent groups, where unemployment and financial pressure make the promise of a “big win” especially seductive.She also warned that celebrity and influencer endorsements are embedding gambling into youth culture.
“When well-known public figures post their bet slips, promote boosted odds, or celebrate big wins on social media, it functions as powerful social proof. If someone admired appears to be benefiting, young followers are far more likely to perceive gambling as normal, accessible, and relatively low risk. Very rarely do we see the sustained losses, mounting debt, anxiety, or shame that often accompany problematic gambling. The emotional and financial fallout is largely invisible.”
Saturday Star
