Big Dreams, Unrealistic Hopes

Turning dreams into reality starts with setting achievable goals and cultivating a positive mindset to overcome challenges effectively.

Living in a dream world results in a tendency to wish away realities, like a debt burden, by escaping into fantasies such as betting and winning large sums of money to settle the debt.

There is substantial evidence indicating that compulsive daydreaming can disrupt normal functioning, hinder decision-making, and ultimately strain relationships while reducing workplace productivity.

In last week’s column attention was drawn to a recent report of the Namibia Financial Supervisory Authority (Namfisa), revealing that 259 266 Namibians borrow from microlenders and 39% are payday lenders, with loans averaging N$3 857.

Namfisa classifies payday lenders as borrowers with a loan period of between two and four weeks – this involves Namibians living from payday to payday.

Financial illiteracy leads to poor decisions, such as not saving, resulting in borrowing to fund needs.

The prevalence of gambling houses and online betting is another problematic development requiring closer examination.

The societal impact of online betting was exposed at an M & G Investments webinar this week.

M & G Investments is an asset managing firm with a global presence that includes Namibia.

In a study published by M & G Investments, Boitumelo Mahundu and Ross Briggs highlight the surge of online betting in neighbouring South Africa (SA), where it has grown by a compounded annual rate of 43% since 2020, to an eyewatering R75 billion annual revenue.

Mahundu and Briggs say: “The sobering reality is that millions of South Africans – particularly low-income, unemployed youth – are placing bets on digital platforms where the odds are overwhelmingly against them.”

The South African National Gambling Act of 2004 reportedly did not anticipate the explosive growth of online betting powered by smartphones, affordable data, and sophisticated artificial intelligence(AI)-driven marketing.

As Mahundu and Briggs report, from a technical viewpoint, online gambling remains illegal in SA.

However, by exploiting regulatory gaps, such as using bookmaker licenses initially designed for fixed-odds betting to offer casino-style betting online, the sector has grown phenomenally there.

They go on to say that this minimal oversight has fuelled the explosion of online betting in a poorly regulated taxed environment.

The result, according to Mahundu and Briggs, is an online betting industry that flourishes in a poorly regulated taxed environment with a relatively light fiscal touch, with 81% of visitors to online betting sites earning monthly incomes of less than R10 000.

The report titled ‘Online Betting in South Africa is Booming – But at What Social Cost?’ makes for interesting but scary reading.

It is no secret that people living on false hopes repeatedly believe in unrealistic expectations of winning their way to riches.

What was scaringly highlighted at the M & G Investments webinar is the high number of South Africans receiving social grants and youngsters on student funding programmes who routinely visit online gambling sites.

Working around Namibia it is abundantly clear that there is now a presence of cash loan and betting shops at even the smallest settlement.

Could there be a correlation, one wonders.

What is the scenario in Namibia when it comes to online betting?

Hopefully M & G Investments commissions a similar study here.

– Danny Meyer is reachable at danny@smecompte.com

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.