I reckon money spent on punting is money well spent.
You have to spend money on something. It's just paper or a number if you don't spend it on something.
Saving is pointless. You still have to spend it on something eventually or worse still leave it to someone after you are dead.
Look at the other options: eating out will make you fat and unhealthy, drugs, smoking and alcohol will make you sick, gambling will drive you crazy, flashy clothes, cars or jewellery is just to pick up chicks anyway.
Punting wins out every time.
If you are getting in over you head in debt, you should definitely cut down though.