Don’t gamble with your and family’s health and wealth
Pastime can turn to addiction
If you like gambling, you should make sure not to spend more than 2% of your discretionary income – that is not needed elsewhere – on this hobby. Anything more will take you into the dangerous territory of gambling addiction, which is always detrimental to not only your mental, physical and financial wellbeing, but also that of your closest and dearest family members and friends, experts warn.
SA’s gambling revenues are forecast to hit R35bn by 2021 and remain a significant contributor to government tax revenue, employment and capital investment.
However, there is concern around the increased number of South Africans betting their income away in the hope of making a quick buck and risking becoming gambling addicts.
A bigger cause of concern is the rise of sports betting, particularly on online platforms where you bet on the outcome of a sporting event, according to Pietro Calicchio, Southern Africa’s hospitality and gaming industry leader at PwC.
Gerald Mwandiambira, a certified financial planner and director at the Financial Planning Institute, warns that gambling is an addiction akin to alcohol or drug abuse.
“It makes the addict out of touch with reality and gambling losses can lead to financial challenges, further fuelling the addiction.”
What makes gambling particularly addictive is the “one win” or “jackpot” dream or even the memories of a win.
A recent survey by the National Gambling Board showed that more than half of the people who placed regular bets did so because they truly believed in their chance of winning, while close to a quarter surveyed said they did so because they were in need of money.
David Weare, Momentum Consult franchise principal and financial adviser, cautions that an addiction takes over your daily life, monthly financial obligations and future financial goals.
“Once you start using income that is meant to service your monthly expenses or is earmarked for savings, investments or a retirement annuity, that’s when the habit is out of control,” Weare says.
While gambling offers the chance of winning big, the law of maths is against you as not only must many people lose to allow one person to win, but also the house always wins.
Mwandiambira says if you were to gamble as a pastime, you should put aside no more than 2% to 3% of your disposable income and only if you can afford to do so. Spending beyond that becomes an irresponsible pastime, he says.
“You can also be responsible by betting only the ‘profits’ you make from betting and recycling your wins. This will help you avoid dipping into required income and savings.”
The South African Responsible Gambling Foundation advises social gamblers to remain vigilant by placing small bets and setting a daily loss limit for how much you’re willing to lose.
If your financial circumstances are already dire, you are in no position to lose one cent, so it would be wise to steer clear from gambling houses and betting platforms.
If you gamble online beware of scams – look for safe deposits and reliable withdrawals.
Weare says if you or a loved one develop an addiction, seek professional assistance.
You can also approach the Provincial Gambling Board to be voluntarily excluded from any gambling venues and platforms it regulates. The board will circulate your information to all licensed venues. However, it remains your responsibility to stay away.
If you feel like you are losing control you can also ask some online betting platforms to restrict access to your account.