A growing trend of students using their National Student Financial Aid Scheme (NSFAS) allowances for online gambling has sparked major concern from the South African Union of Students (SAUS), raising urgent questions about financial management and support for the youth.
The issue, which has ignited a national debate on how to better protect student funds, was highlighted in a recent television interview with SAUS National Working Committee member, Mhlengi Ngubo.
Ngubo expressed the union’s deep concern, stating that student leaders fight for these resources so that learners can attend classes and buy necessary materials. “And now with these reports, it’s quite concerning,” he said.
When probed on the potential reasons behind this behaviour, Ngubo suggested that the high volume of gambling advertisements, combined with the fact that some students may find their allowances insufficient, could be driving them to gamble in an attempt to make more money. He cautioned, however, that this was not a justification for the “misuse of funds.”
He pointed to a lack of financial literacy as a core issue, sharing a personal anecdote about receiving a large sum of money for the first time and being exposed to aggressive marketing from gambling platforms that promise to multiply it.
On the question of how universities should respond, Ngubo proposed that student-led structures, such as Student Representative Councils (SRCs), should take the lead in educating their peers. He argued that SRCs, with support from their institutions, are best positioned to run awareness campaigns on campus, especially in environments where students have free Wi-Fi and time to engage with these platforms.
The interview also explored the wider consequences, with the reporter noting the addictive nature of gambling and its potential impact on academic performance, mental health, and overall student well-being. Ngubo affirmed this is a “huge concern” for the union.
Regarding the role of NSFAS itself, Ngubo warned against a return to restrictive payment methods, such as dedicated cards that limit where funds can be spent—a system students previously fought against. Instead, he suggested that NSFAS, which is a service provider to the Department of Higher Education, should work with SRCs and its own deployed institutional staff to create intervention programs.
The conversation expanded to the responsibility of government, given the significant rise in online gambling advertisements that often feature celebrities to attract a young audience. Ngubo called on the government to work with broadcasting authorities to find ways to “minimise such exposure” to protect the public and students, who are particularly vulnerable.
The segment concluded with a consensus that the situation requires a multi-faceted approach, combining student-led education, institutional support, and stricter government regulation of gambling advertising to safeguard vital student funding.