South Africa’s National Student Financial Aid Scheme (NSFAS) has raised concerns that some students may be using government-funded allowances for online gambling, highlighting a growing challenge in safeguarding public funds allocated for education.
The warning, issued in collaboration with the National Gambling Board, comes amid increasing exposure of young people to digital betting platforms. Officials say that both sports betting and casino-style online games are gaining popularity among students.
Growing risks linked to online gambling
NSFAS plays a critical role in supporting access to higher education for students from low-income households. The scheme provides funding for tuition, accommodation, food, transport, learning materials and personal expenses, amounting to roughly 5,200 rand per month per student.
With more than 800,000 students receiving funding in 2025 and total allocations reaching approximately 48 billion rand, the programme represents one of the largest public investments in education.
However, authorities warn that the increasing accessibility of online gambling is creating new risks. Students, often managing financial support for the first time, may be particularly vulnerable to the appeal of quick financial gains.
“There are growing concerns about the unintended use of student allowances for gambling activities,” officials said, noting that this trend could undermine the purpose of the funding.
Ongoing governance challenges
The issue adds to a series of long-standing challenges facing NSFAS, including allegations of corruption, fraud and poor administration.
Investigations by the Special Investigating Unit have previously revealed that billions of rand were allocated to ineligible beneficiaries, while procurement processes involving service providers have also come under scrutiny.
In 2024, Higher Education Minister Blade Nzimande dissolved the NSFAS board in response to governance failures, underscoring the seriousness of the situation.
The scheme has also faced political pressure, with Finance Minister Enoch Godongwana indicating ahead of the 2026 Budget Speech that he would consider shutting it down if it were feasible. However, he acknowledged that the programme remains essential due to the large number of students who depend on it.
The emergence of gambling-related concerns suggests that oversight challenges extend beyond institutional governance to the behaviour of beneficiaries themselves.
Experts say addressing the issue will require a combination of stricter controls, improved financial education and greater awareness of the risks associated with gambling.
As South Africa continues to invest heavily in expanding access to higher education, ensuring that funds are used for their intended purpose remains a key priority.
