South African students are increasingly using money meant for food, books and daily expenses to gamble online, raising fresh concerns over the country’s R53.4 billion student funding scheme.
The National Student Financial Aid Scheme (NSFAS) currently supports more than 1.2 million people pursuing tertiary education. Its budget increased to R53.4 billion for the 2026/27 financial year as demand for financial assistance continues to grow.
NSFAS money going towards online betting
The South African Responsible Gambling Foundation (SARGF) has reported a growing number of students seeking gambling addiction counselling after using NSFAS money to fund online betting.
According to the foundation, its internal intake records show that students have admitted to using living stipends and book allowances for online sports betting.
The SARGF warned that diverting money intended for education and basic living costs towards gambling is undermining public investment in higher education. It also linked the trend to growing debt, anxiety and depression among affected students.
During the 2026 financial year, roughly 3,500 people received treatment for gambling addiction through the foundation. About 2,670 of them were between 18 and 35 years old.
The SARGF has warned that gambling among students is developing into a wider public health concern.
Students already battling rising costs
NSFAS kept its living allowances unchanged in 2026 despite rising living costs.
Students who do not stay in catered residences currently receive R15,000 per year for living expenses. Those in catered residences receive a R2,900 personal care allowance for necessities not supplied by their accommodation.
The gambling concerns come as NSFAS continues to face pressure over delayed payments and administrative problems.
Between 2018 and 2021, the Special Investigating Unit found that around R5 billion had been irregularly paid to more than 40,000 students who did not qualify for funding.
NSFAS was also placed under administration in 2024 following problems involving procurement and management.
With the number of NSFAS beneficiaries having roughly doubled since 2015, protecting funding intended to help low-income South Africans access education is becoming increasingly important.
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