Quick fix, slow poison: how student gambling is wrecking NSFAS allowances

What begins as a quick fix for empty cupboards is fast turning into a dangerous cycle of debt and addiction for many students.

For some, online gambling, often introduced through “free spins” and easy sign-ups, has become a survival tactic while waiting for National Student Financial Aid Scheme funding (NSFAS), with devastating consequences.

It all started with free spins that won Noxolo*, a third-year student at the Cape Peninsula University of Technology, R500.

At the time, she was a first-year student still waiting for her funding from the NSFAS.

“I had just arrived on campus, and my parents didn’t give me much because we all knew NSFAS would cover accommodation and fees. But a week became two weeks, then a month. I ran out of toiletries and the little groceries I had,” she said.

Noxolo, who asked not to be identified for fear of losing her NSFAS funding, said she survived on noodles and boiled eggs, sometimes just noodles.

Her introduction to gambling came in a lift conversation with other students facing similar struggles.

“One student said she didn’t even have R1 and asked when NSFAS was paying. Another asked if we didn’t know about Betway, which gives you free spins when you sign up. He showed me how it worked and said this is how students survive while waiting for NSFAS,” she said.

When these funds are diverted to gambling, it undermines academic success and long-term financial well-being. This partnership focuses on prevention, awareness and empowering students to make informed choices.
— NSFAS acting CEO Waseem Carrim

That first bet changed everything.

“I won R500, and he showed me how to withdraw it,” she said.

Tired of asking her parents for money, she began gambling more frequently, initially buying vouchers from local shops to avoid linking her bank account.

“I was scared of losing my NSFAS, but then I realised other students were using their bank apps,” she said.

She said the initial wins are what hook many students. “When you start playing, you win a lot, that’s how you get addicted.” This year, when she received R10,800, including her book allowance, she lost most of it to gambling.

“At one point, I won R20,000, and my family was so happy. We bought things we needed. But the money doesn’t last as I had to pay my debts and go back to gambling,” she said.

Another student, Ayanda*, described gambling as a constant emotional and financial gamble.

“It’s a win-or-lose situation. Sometimes I win and can buy toiletries, clothes, groceries and school supplies. But when I start losing, it’s stressful because I have to borrow from other students,” he said.

“It’s very addictive. You keep betting, hoping to win, but you end up losing more money. At home, they don’t send me extra cash, so I have to survive on R1,700, and honestly, it’s not enough in this economy.”

NSFAS has acknowledged the growing concern, saying research shows that financial pressure, aggressive digital advertising, easy online access and targeted promotions are driving increased gambling among young people, often at the expense of their academic performance, financial stability and well-being.

In response, the National Gambling Board and NSFAS have launched a strategic partnership aimed at curbing gambling among students and protecting public funds meant for education.

NSFAS acting CEO Waseem Carrim said student funding is intended to support academic journeys and basic living needs.

“When these funds are diverted to gambling, it undermines academic success and long-term financial well-being. This partnership focuses on prevention, awareness and empowering students to make informed choices,” he said.

The initiative will include nationwide outreach and on-campus programmes, financial literacy campaigns and targeted awareness about the risks of online and illegal gambling. Students will also be engaged through workshops, dialogues and campus activations focused on prevention, harm reduction and informed decision-making.

National Gambling Board acting CEO Lungile Dukwana said the partnership prioritises protecting young people from harmful behaviours.

“Particular attention will be given to the growing normalisation of gambling through digital advertising, social media and mobile applications, which increasingly affect students,” he said.

But for students like Noxolo and Ayanda, the grip of gambling is already hard to break.

“It’s a cycle,” they said. “You lose and bet more. You win and still bet more.” When asked how they cope academically after losing book allowances, they admitted to relying on pirated materials.

“There are sites where we get copies,” they said.