Tough economic times attributed to gambling crisis

 

The South African Responsible Gambling Foundation (SARGF) says in the period between 2021 and 2024 there has been an increase in Psychiatric Evaluations and Inpatient admissions in the country due to gambling.

As more and more South Africans struggle to put bread on the table due to the scarcity of jobs and high food prices, the organisation says gambling has become a solace for some who turn to betting to make some extra cash.

Research by the foundation’s national responsible gambling programme shows that close to 3 000 people have reached out to the group through its toll-free counselling line between April last year to December.

The organisation’s Executive Director, Sibongile Simelane-Quntana, says there has been a shift in the method people use to gamble over the past four years.

“Previously land-based gambling and betting (casino, bingo, payout machines, sports betting, and horse racing) was the most preferred way for people to try their luck at making some money, however that has now morphed to online betting,” says Simelane-Quntana.

The foundation says COVID-19 fast-tracked the migration from land-based betting to online gambling.

“The lockdown fast-tracked the migration due to the limited human movement and contact of the lockdown restrictions,” adds Simelane-Quntana.

The organisation says since April 2019 to March 2024, more males have been found to gamble over females.

During this period, people between the ages of 25-35 had the second highest number of gamblers, behind the 35-65 group. Youth’s younger than 25 have lower gambling numbers.

The report also reveals that full time workers are the ones who gamble the most, painting a bleak picture of the economic hardships in the country that push even the employed to find other means to stay afloat, financially.

According to SARGF, there are different kinds of gamblers

Level 1 – A Social Gambler:

These are gamblers who gamble for social or leisure; these gamblers can gamble within their means and can afford the amount they gamble with and don’t consistently and continually chase their losses. In other words, these are relatively healthy gamblers.

Level 2- A Problem Gambler:

These are gamblers who no longer gamble for social purposes or leisure; these gamblers often gamble to service their debt, win more money or even chase losses and are constantly preoccupied with gambling that it begins to affect their daily functioning and responsibilities (home, financial and work relationships). These gamblers often have another mental illness or comorbidity e.g., Alcohol, drug abuse, verbal or verbal abuse.

Level 3 – Disordered Gambler:

These are disordered gamblers who are completely and fully addicted to gambling and now have a lifelong mental illness.

The South African Responsible Gambling Foundation has called on people to seek help if they feel that they are spiraling out of control and spending money they don’t have.

The National Gambling Board (NGB) on the other hand says the the industry continues to record an upward trend with the last statistics for the 2023/2024 financial year, recording a R1.1 trillion turnover with R59.3 billion gross gambling revenue (an amount earned by the gambling operator after winnings have been paid to their gambling punters).

“Over 80% of betting revenue is derived through bets undertaken on the online platforms of licensed bookmakers, reflecting a broader digital shift,” says the NGB’s Lynette Kamineth.

According to the board’s report, participation in gambling rose from 30.6% in 2017 to 65.7% in 2023.

“Betting sponsorships also have become a prominent feature of South African sports, increasing the public’s exposure to gambling especially as sports is loved by most in the country,” adds Kamineth.

She says because South Africa’s gambling advertising laws do not cater for time and sponsorships restrictions, advertising in a constrained economic environment entices risk-taking behaviours and lures even non-gamblers to try their luck at winning.

Rise Mzansi has also expressed concern over this growing trend, saying it should be a eye-opener for government about the financial turmoil South Africans are in.

The party says if government doesn’t act soon, an entire generation of young people will be lost to gambling, drug and alcohol abuse.