Rise in gambling endangers financial stability of South African youth

Consisting mainly of sports betting and online casinos, the South African gambling industry has experienced a significant revenue increase from R8.8 billion in the 2019/20 financial year to R23.7 billion in 2022/23. This rise in profit has been recorded alongside rising unemployment rates—50% of which impact the youth—and a growing cost of living amongst South Africans. While it’s true that promotions like no deposit bonuses advertised on casinos and premium affiliate brands such as NoDepositCasino.guide are no doubt tempting, more promotion on responsible gambling is necessary.

For some time now, the betting industry was cast under a relatively positive light in South Africa, with main benefits including job opportunities and taxation amongst others. Nevertheless, this luster seems to have faded over the past couple of years, with Governments noting a steady growth in problem gambling amongst the younger generation.

Making gambling widely accessible around the clock, the internet has added online gambling to the gray, with young South Africans making active and regular use of computers and smartphones to access a myriad of betting platforms that mostly sell the idea of getting rich quick.

According to a recent study carried out by InfoQuest, a South African research organization, lotto is the most popular form of betting at the moment in this region, immediately followed by online sports and gambling. With a strong sporting culture that focuses on various practices such as cricket, rugby and soccer primarily, South African punters are increasingly making use of online betting platforms to wager on all their favorite teams at any given time.

In a separate study carried out by the Financial Sector Conduct Authority (FSCA) in South Africa, just under 40% of South Africans currently feel that risk-taking is an integral part of their lives, with just over 30% willing to take those risks if there’s the chance of making money. The study also indicated that up to 25% of South African gamblers will willingly take risky financial decisions, with a focus on younger people looking to make a quick buck in the least amount of time. Unfortunately, this mentality can quickly turn into an addiction, while it could also potentially lead to adverse effects on mental, financial and academic performance.

What usually begins as a seemingly innocuous pastime could quickly develop into a rapidly evolving addiction that could eventually consume a person’s life. The thrill and anticipation associated with gambling causes a surge in dopamine, which will eventually cause punters to keep chasing that high. This behaviour could be the start of a gambling disorder, which could eventually lead to devastating consequences on various levels.

Younger South Africans are more susceptible to starting to think about gambling as a convenient escape from the struggles of daily life. With an increasing number of people considering betting as the path to financial freedom, or a quick way to escape poverty, this is giving rise to additional problem gambling in areas that are currently facing economic challenges.

Apart from pushing youths into financial distress, online gambling can also adversely impact mental health. The constant chase of the thrill can often lead to depression, hopelessness and anxiety, while financial strains can also result in the breakdown of social relationships, promote isolation as well as dramatically reducing quality of life overall, which is of course a cause for concern.

Online gambling companies will also heavily invest in online marketing campaigns that directly target the younger South African player audience. By engaging in various strategies to create the illusion of wealth and success and by engaging popular influencers to attract a larger following. These campaigns will often highlight the glamour of a winning lifestyle, which younger South Africans tend to immediately associate with an easy and quick route to financial success.

The sad truth is that as engaging and thrilling as gambling might be it’s also very risky behavior to engage in, especially if you’re betting more than you can afford to lose. It’s not a sustainable way to secure a better financial future, however, it is more common than you’d think for anyone to fall into the trap. If you or your loved ones are currently afflicted by gambling addiction help is out there, with the South African Responsible Gambling Foundation representing one of the most reputable organizations out there in this regard.