By Dylan Bettencourt
- Experian and Vault22 say young people spend R1.5-trillion a year on gambling, equal to 65% of all consumer debt in South Africa.
- Experts warn gambling is ruining credit scores and trapping low- to middle-income earners in debt, with online betting making up 61% of the market.
Young South Africans are gambling more than they are eating, spending 41% of their income on bets, more than on groceries.
That is according to a new report by Experian and financial platform Vault22, which found that the country’s 25 million credit-active people are gambling away their future.
“The value of the spend is insane,” said Jaco van Jaarsveldt from Experian. He revealed that the total amount bet in a year, R1.5-trillion, equals 65% of all consumer debt.
The National Gambling Board says South Africans have lost R75-billion to gambling.
Van Jaarsveldt warned that the problem hits millennials hardest, those aged 25 to 44, who make up 60% of gamblers. Many are already struggling to repay debts and are falling behind on bills.
He said gambling is not only draining money but damaging credit scores, making it harder for young people to buy homes, cars or build stable futures.
Experian found that gamblers are more likely to miss payments than those who do not gamble, showing a direct link between betting and financial stress.
Online gambling now dominates the industry, with 61% of bets placed through sites such as Hollywood Bets, Betway and Lotto Star.
Low-income gamblers spend around R2,000 a month, often half their income. High earners spend nearly R6,000, but that is only 10% of what they make.
Van Jaarsveldt said banning gambling or taxing it will not work. He called for national education campaigns to stop the cycle.
Pick n Pay boss Sean Summers has also urged the government to ban online gambling adverts.
Pictured above: Betting.
Image source: Pexels
