In a bid to stop students from spending their loans on online gambling, the National Gambling Board and the National Student Financial Aid Scheme (Nsfas) are working on targeted interventions to tackle the scourge.

This follows the release of a study by the South African Responsible Gambling Foundation last year that found that nearly 45% of government grant recipients are gambling money intended for education and to survive.

National treasury is considering a 20% tax on the online and interactive gambling industry to curb the problem, arguing that the revenue could also contribute to public sector funds to mitigate the social costs.

The board and Nsfas said in a statement on Wednesday that they will formalise their collaboration through the signing of a memorandum of understanding in the coming weeks.

It will promote responsible gambling awareness among students, discourage the misuse of student-funded allowances for gambling, and strengthen preventative education and early intervention initiatives across universities and technical and vocational education and training colleges.

‘Harm reduction’

“Nsfas funding is intended to support students’ educational journey and essential living needs. When these funds are diverted to gambling, it can undermine academic success and long-term financial well-being,” said Nsfas acting CEO Waseem Carrim said in a statement.

The board’s acting CEO, Lungile Dukwana, said that the partnership prioritises the protection of young people through “harm reduction approaches”.