South Africa’s financial institutions are beginning to flag the effect of gambling on the financial well-being of their clients and on their decision-making.
South Africans spent about R1.5-trillion on gambling in the 2024/25 financial year, according to the National Gambling Board, with many social grant and funded student beneficiaries using their allocations to gamble.
Earlier this month Old Mutual reported that 40% of working South Africans gambled frequently, and many were doing so to bridge monthly shortfalls.
“Our research shows that for many South Africans, this is no longer just about recreation or entertainment,” Old Mutual head of business intelligence Keri-lee Edmond said.
Old Mutual head of business intelligence Keri-lee Edmond. (Supplied)
“Individuals are gambling to meet daily needs and expenses, pay off debt, or in an attempt to secure higher incomes. Statistically, we know this is not a sustainable way to improve financial outcomes.”
Last week Moneyweb quoted Absa Group CEO Kenny Fihla as saying that the bank’s personal and private banking unit in South Africa was “starting to use the prevalence of gambling and gambling trends as part of the decision logic when lending to clients”.
Fihla said these spending trends were a “huge predictor” when it came to customers becoming delinquent, adding that the analysis done by the personal and private banking unit shows “that the more clients become indebted, the more they gamble, and the deeper the hole becomes”.
As people spiralled deeper into debt, “the level of gambling just shoots [through] the roof, and the problems become bigger and bigger until they can’t claw themselves out of that hole”, Fihla said.
Daniel Munslow, Absa’s managing executive for group communications, clarified that gambling was one of several input factors the bank considered when monitoring key trends.
“Our analysis of gambling shows strong growth in spending on sports betting with a compound annual growth rate of more than 50%,” he said.
Standard Bank said it assessed every credit application holistically to ensure customers could afford the credit they applied for, based on their overall financial position, income stability and spending patterns.
“Like many financial institutions, we analyse broad transaction trends across our customer base to better understand financial behaviours and potential risks. Lending decisions are never based on a single factor; they are informed by a comprehensive affordability assessment designed to ensure that any credit extended is appropriate and sustainable for the customer.
“Recent years have seen growth in gaming and gambling-related transactions, reflecting broader shifts in digital entertainment and payments. While we do not see concerning trends within our customer base, we continue to monitor these developments closely.
“Our analysis shows that customers who allocate a larger share of their income to these activities may, in some cases, face greater financial pressure. Insights like these inform our approach to affordability and risk, helping us make responsible lending decisions.”
Recent years have seen growth in gaming and gambling-related transactions, reflecting broader shifts in digital entertainment and payments. While we do not see concerning trends within our customer base, we continue to monitor these developments closely.
— Standard Bank
The bank stressed that it did not judge individual spending choices, noting that gambling and gaming were legal forms of entertainment for many South Africans, and most participants managed their finances responsibly.
Nedbank’s spokesperson said the bank acknowledged that online gambling had become a critical social issue in South Africa with growing public concern about its impact on individuals, families and communities.
“Nedbank actively monitors emerging social risks that may affect our clients’ financial well-being. We can confirm we don’t currently use gambling data in the assessment in any of our loan-granting models.”
FNB CEO of personal loans Michael Davis said the bank assessed affordability holistically, considering a customer’s overall financial behaviour, income, existing commitments and ability to service their credit.
“Our analysis shows that materially high levels of gambling spend relative to income can indicate financial strain,” Davis said.
“In such cases, this information forms part of the broader affordability view, and we apply additional caution in line with our lending practices. Importantly, money gained through gambling is not used in affordability calculations against applications for loans.
“As a responsible lender, our priority is to ensure that customers are not placed under undue financial pressure and to help prevent over‑indebtedness.“