Education funds or gambling cash? Officials scramble for solutions

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.

- ANITA NKONKI

What was meant to remove bartiers 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.