A growing number of university students are misusing their National Student Financial Aid Scheme (NSFAS) allowances to gamble on digital platforms, leading to significant personal debt and an inability to afford basic necessities, an investigation has revealed.
According to a report by the Daily Maverick, the gambling habit, primarily taking place on sites like Betway and Hollywood Bets, has resulted in “distressing outcomes” for affected students.
The issue was unpacked by Daily Maverick education reporter, Siyabonga Goni, who conducted interviews with students from institutions including Walter Sisulu University and the University of Johannesburg (UJ). Students disclosed that they use portions of their NSFAS book and living allowances to gamble on online games such as “Aviator” and live horse racing.
“The NES money would actually come in… and they would take a sum of that money and place it on these gambling games online,” Goni reported. The consequences are severe, with students often losing their funds and subsequently borrowing money from peers, plunging them into debt.
“Some in some cases they can’t even afford to go and buy groceries,” Goni stated, adding that even with little money left, students retain a false hope that further betting will allow them to win their money back.
A significant concern is that students appear unaware that this misuse contravenes the NSFAS funding agreement. When contacted, NSFAS indicated it had not received any formal complaints directly about the widespread misuse of funds for gambling.
The NSFAS spokesperson, Mr. Slumezi Nkoyi, stated that the scheme is focused on financial literacy. “NSFAS is focused on financial literacy whereas they’re trying to raise awareness campaigns and collaborate with institutions to sort of help students manage money responsibly,” Goni relayed. However, the spokesperson’s acknowledgement that NSFAS was unaware of the problem suggested to the reporter that there may not be active measures to monitor how students are spending their allowances.
The role of social media influencers in promoting gambling was also identified as a key factor driving student participation. The confirmed that the use of influencers by betting companies is “inconsistent with the principle calls of responsible gambling.”
The Board’s CEO outlined their proactive measures, which include face-to-face education campaigns in communities and information sessions at tertiary institutions to raise awareness about the risks of gambling.
A clinical psychologist also weighed in, explaining that the use of high-profile brand ambassadors normalizes gambling and entices students to participate.
With NSFAS adopting a monitoring stance and students facing severe financial hardship, the situation highlights a critical gap in safeguarding public funds intended for educational advancement.