Gambling in SA Rising: The House Always Wins – Unless You Invest Wisely

South African consumer behaviour, according to the Absa Merchant Spend Analytics Report for the first half of 2025, is showing signs of strain. Spending is shifting towards smaller, lower-value purchases, while online gambling continues to rise.

“MILLIONS are spent glamourising the addiction with relentless ads.

There is no jet-set lifestyle, luxury cars, or champagne.

The profit comes from selling poor folks a dream.

The house ALWAYS wins 🎰🎰,” Koshiek Karan said on an X post

The Temptation of Quick Wins

Financial pressure is clearly influencing choices, and for many, the temptation of quick wins through gambling is hard to resist. Yet, while gambling may provide short bursts of excitement, the long-term costs can be severe when compared to the steady, compounding benefits of disciplined investing.

The Power of Long-Term Investing

When it comes to building wealth, few strategies are as powerful as long-term investing. By consistently putting money into assets such as stocks, real estate, or index funds, investors allow compound growth to work in their favour. Over time, this compounding effect can turn small, regular contributions into substantial amounts, offering stability and financial security for the future. Unlike gambling, which thrives on short-term luck, investing rewards patience, discipline, and informed decision-making.

The Risks of Instant Gratification

Gambling, on the other hand, often appeals to the desire for instant gratification. Many people are drawn in by the thrill of quick wins, but the reality is that most lose more than they gain. When losses pile up, gamblers often chase them, risking even more money in the hope of breaking even. This cycle can lead to financial ruin, emotional distress, and long-term instability. What may begin as harmless fun can quickly spiral into losing thousands, with little to no chance of recovery.

Key differences between gambling and investing include:

• Gambling is based on luck, while investing can based on analysis and strategy.
• Gambling outcomes are immediate, but investing often rewards patience.
• Chasing losses in gambling can wipe out savings; consistent investing could build wealth.
• Gambling offers no compounding benefits, while investments could potentially grow exponentially over time.
• Gambling often leaves you with regret; investing often provides long-term peace of mind.

The difference lies not only in outcomes but also in mindset. Investors understand that markets have ups and downs but stick with their strategies, knowing that short-term volatility doesn’t erase long-term potential. Gamblers, however, often react emotionally, doubling down when they lose, which only magnifies their financial pain. Over time, this reactive approach erodes both money and confidence, creating a destructive cycle that is difficult to escape.

The house ALWAYS wins 🎰

The saying goes, “the house always wins,” and in gambling, that is almost always true. While individual players may win occasionally, the odds are designed so that the gambling operator consistently comes out ahead. Instead of pouring money into bets with near-certain losses, South Africans can take a smarter approach by investing in the very companies that run these platforms. Through EasyEquities, investors can gain exposure to Super Group, the parent company of Betway, one of South Africa’s largest gambling platforms, which benefits directly from gambling activity.

By holding shares, investors not only participate in the company’s growth but may also receive dividend payouts, effectively putting themselves on the winning side of the house.  For context, Super Group initially paid an additional dividend but later switched to quarterly payouts.

In terms of latest financials, Super Group had a strong first half of 2025, driven by record performance in the second quarter. Key market execution, global sporting events, higher deposits, customer retention, and margin expansion supported growth. Exiting the U.S. reflects a focus on capital efficiency, while global technology scaling positions the company for sustained growth.

• One analyst notes that, “The company’s robust revenue and EBITDA growth, coupled with effective cost management, support a positive outlook.”

Can you guess where the “robust” revenue would come from? 👀

Investing or Gambling: The Clear Choice

Investing is about securing a future, while gambling is about risking it. One builds a foundation that grows stronger over time, while the other steadily chips away at hard-earned savings.

Through investing, an investor can take advantage of opportunities like buying the dip, accumulating quality assets at lower prices, and building ownership in shares, property, or funds that generate income and long-term growth. Gambling, on the other hand, often traps people in a cycle of chasing losses, risking money on speculation with nothing tangible to show for it.

The choice is simple: embrace the discipline of long-term investing, where patience and consistency reward the investor, or gamble away financial security in the fleeting hope of a quick win.

Sources – EasyResearch.

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@caylow_SA

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