Rising levels of gambling among South African employees are emerging as a clear indicator of growing financial stress, with implications for retirement outcomes, household spending patterns, and workplace performance.
Recent findings from Old Mutual Corporate show that 40% of working South Africans now gamble frequently, often to bridge monthly shortfalls. At a national level, Statistics SA estimates that as much as 55% of recreational spending is directed towards gambling, pointing to a shift from discretionary activity to a mainstream financial coping mechanism.
Gambling becomes a financial coping mechanism
Keri-Lee Edmond, the head of business intelligence at Old Mutual Corporate, said the trend reflects a workforce under strain.
“What we are seeing is a society under strain. Short-term relief is consistently winning over long-term security because many employees simply do not have the financial reserves they need to cope,” she said.
She added that the issue has moved beyond individual behaviour. “This is no longer an individual challenge. It is a workforce-wide issue that employers need to factor into how they support their people.”
Edmond said gambling is increasingly being used to manage cash flow pressures. “Our research shows that for many South Africans, this is no longer just about recreation or entertainment. Individuals are gambling to meet daily needs and expenses, pay off debt, or in an attempt to secure higher incomes. Statistically, we know this is not a sustainable way to improve financial outcomes.”
She noted that although gambling is more pronounced among younger and lower-income employees, it is evident across income bands, reflecting broader pressure from debt and rising living costs.
Retirement savings and tax policy under pressure
The retirement sector is beginning to see the effects of this behaviour, particularly with accessible savings, while policymakers are weighing fiscal measures to curb the trend.
Danie van Zyl, the head of the Smoothed Bonus Centre of Excellence at Sanlam Corporate, said the national Budget includes a discussion paper on a proposed tax on online gambling. He described the proposal as analogous to “a certain tax on alcohol [and] tobacco”, aimed at imposing an additional levy on online gambling revenues.
He linked the policy discussion to declining financial resilience, noting that industry commentary has highlighted cases where retirement fund members are using two-pot withdrawals for online gambling, with consequences for both financial outcomes and mental well-being.
Van Zyl has also cautioned that withdrawal patterns under the two-pot system are becoming habitual, with members accessing savings as soon as they are available and repeating withdrawals across tax years. This risks turning an emergency mechanism into a recurring source of liquidity, with some of these funds being channelled into high-risk gambling.
He added that the issue extends beyond retirement savings. The National Student Financial Aid Scheme (NSFAS) has engaged the National Gambling Board after identifying instances where student funding has been used for online gambling, indicating that funds intended for education are being diverted into high-risk activities.
Ronald King, the vice-president of the Financial Intermediaries Association and head of public policy and regulatory affairs at PSG, cited government research indicating that about 45% of discretionary household spending is directed towards online gambling, describing this as “a massive concern”. He said spending is increasingly being diverted from essentials such as rent and food.
King noted that the government has signalled its intention to introduce a national online gambling tax, in addition to existing provincial levies, as both a revenue measure and a behavioural intervention.
National Treasury published a draft national online gambling tax discussion paper for public comment in November 2025, proposing a tax of 20% on gross gambling revenue generated by online gambling. The proposed levy would sit alongside existing provincial gambling taxes. The public comment period was extended to close on 27 February 2026. Treasury is expected to hold a workshop with stakeholders who submitted comments, after which a revised proposal will be incorporated into draft legislation for further public consultation later in the year.
Van Zyl indicated that such a tax would likely be viewed alongside “sin taxes”, positioning it as a tool to curb harmful financial behaviour.
Workplace impact: financial stress becomes operational risk
Old Mutual Corporate’s findings suggest that the impact of gambling-related financial stress is already visible in the workplace.
Edmond said financially stressed employees may show reduced focus and lower productivity, reflecting the spillover of household pressure into daily performance. She indicated that this is not simply disengagement, but financial strain affecting how employees function at work.
“Employees need support that helps them manage immediate financial pressure while also building long-term stability,” she said. “Employers can make a meaningful difference by offering responsible benefit flexibility, alongside timely and targeted financial guidance that helps employees make confident decisions at key moments.”
Calls for targeted intervention
Old Mutual Corporate has called for a shift in how employers respond to financial stress among employees.
Edmond said benefit structures should incorporate “responsible flexibility”, allowing employees to adjust benefits as circumstances change, while maintaining safeguards that protect long-term financial outcomes.
“Responsible flexibility gives employees room to adjust their benefits as their circumstances change, but within guardrails that protect long-term security and prevent short-term pressures from undermining their future. We need to help employees automate their futures before they have to negotiate with their present,” she said.
She added that without intervention, current behaviour is likely to persist. “Without timely support, employees will continue turning to solutions that undermine their long-term wellbeing and affect organisational performance. The opportunity to intervene has never been clearer.”
Industry responses are expected to focus on tighter controls over access to long-term savings, targeted taxation of online gambling, and more explicit inclusion of gambling behaviour in financial advice and planning.
