Sean Coleman is one of the respected voices within the Southern Africa’s gaming and betting ecosystem, recognized for his regulatory insights, strategic leadership and deep understanding of the evolving sportsbook industry. In this interview with John Bamidele, Coleman who is the CEO of South African Bookmakers Association shares his thoughts on South Africa’s betting industry.

Known for balancing commercial realities with regulatory responsibility, Coleman continues to play an influential role in shaping dialogue around the future of betting, player protection and operational standards within Africa’s rapidly expanding gaming landscape.

How concerned are you about the rapid growth of illegal and offshore betting platforms targeting South African players beyond regulatory oversight?

The concern is significant and justified. South Africa has developed one of the most mature regulated betting markets on the continent, but the growth of illegal offshore platforms presents a direct threat to consumer protection, regulatory integrity and our economy through fiscal revenue. These operators frequently target South African consumers without holding local licences, without contributing taxes locally and without complying with South African responsible gambling obligations, anti-money laundering controls or dispute resolution mechanisms.

The biggest concern is not simply competition with licensed operators; it is that consumers are exposed to environments where there is little recourse in the event of non-payment, unfair practices, misuse of personal information or problem gambling harm i.e. the ability to self-exclude. Illegal operators are also highly adaptive technologically, using mirror domains, crypto-based payment channels and aggressive digital marketing tactics that make enforcement increasingly complex.

The industry’s position is that a strong regulated market can only survive if enforcement against illegal operators is properly resourced and coordinated across regulators, law enforcement, financial institutions, digital platforms and payment providers.

South Africa’s betting market is the leader in Africa and it’s growing aggressively but it seems regulators and operators don’t truly understand the social cost behind the numbers according to our findings.

Rapid growth in betting activity does require ongoing scrutiny regarding its broader social impact. However, it is important that discussions around social cost are grounded in evidence rather than assumptions. Growth in betting turnover does not automatically equate to growth in gambling-related harm. Online gambling turnover must consider the fact that bets often recycle 8-10 times. Much of the increase also reflects digital migration, broader smartphone access, formalisation of previously informal gambling activity and expansion of regulated online betting products and some gains in channelisation from the illegal market. Channelisation has become more successful due to the introduction of additional contingency betting products that are now available in the local market.

That said, the industry accepts that social impact cannot be measured solely through tax revenue, employment figures or market growth. A mature regulatory framework must continuously assess affordability risks, gambling intensity, youth exposure, indebtedness and mental health impacts.

The industry supports evidence-based research, targeted interventions for vulnerable players and better data-sharing between operators, regulators and public health stakeholders. Sustainable regulation depends on balancing consumer freedom with meaningful harm minimisation measures.

Many operators promote “responsible gaming” publicly while aggressively pushing bonuses, VIP retention tactics and high-frequency betting products privately. Is the industry genuinely committed to safer gambling?

The industry acknowledges that there is legitimate public scrutiny regarding the tension between commercial growth strategies and responsible gambling commitments. Responsible gambling cannot simply exist as a compliance slogan or marketing exercise; it must be operationally embedded within product design, customer engagement and risk monitoring systems.

Most regulated operators today utilise sophisticated behavioural analytics to identify indicators of harmful play, including sudden increases in spend, prolonged sessions, erratic betting patterns and repeated failed deposits. Increasingly, intervention systems are becoming more proactive rather than reactive. The industry has embraced the use of AI technology to achieve this.

At the same time, there is an ongoing debate internationally about the appropriateness of certain VIP programmes, inducements and high-intensity betting products. That debate is healthy and necessary. The regulated industry is far better positioned to implement safeguards, affordability controls, exclusion systems and intervention protocols than illegal offshore operators who operate entirely outside accountability structures in pseudo licensing jurisdictions like Curacao, Malta and the Philippines.

The objective should therefore be to strengthen standards within the regulated environment rather than drive consumers toward unregulated markets where no consumer protections exist at all.

What concrete data does the association have regarding gambling addiction trends, self-exclusion rates and problem gambling behavior in South Africa over the past five years?

The challenge in South Africa is that gambling-related data collection remains fragmented across provincial regulators, operators and research institutions. There is currently no single consolidated national database that comprehensively tracks all indicators of gambling-related harm across all betting verticals. The SARGF does track and collate its own statistics which are reported at various intervals including in its annual report.

However, several trends are evident:

• Self-exclusion participation has increased steadily as digital betting platforms have expanded and awareness mechanisms have improved.
• Online operators are recording higher utilisation of responsible gambling tools such as deposit limits, cooling-off periods and account restrictions.
• Younger digitally active demographics show higher engagement with online betting products compared to traditional gambling formats.
• Operators are investing more heavily in behavioural monitoring technologies to identify risky gambling patterns earlier.

The industry supports greater standardisation of data collection and reporting across provinces to improve evidence-based policymaking. Importantly, prevalence studies internationally continue to show that the overwhelming majority of gambling participants engage recreationally and without indicators of problem gambling behaviour. Regulatory focus should therefore remain targeted, data-driven and proportionate. It is imperative that the National self-exclusion register is brought online to assist in all these associated processes.

How is the association safeguarding its members against the growing threat of illegal and offshore operators eroding market share and undermining regulated business?

The association’s approach focuses on three primary pillars: enforcement advocacy, consumer awareness and regulatory collaboration.

Firstly, we continue engaging regulators and policymakers on the need for stronger enforcement mechanisms against illegal operators, including domain blocking, payment disruption measures, advertising restrictions and enhanced cooperation with international enforcement agencies.

Secondly, consumer education is critical. Many consumers do not distinguish between licensed and unlicensed operators. We therefore support initiatives that help consumers identify legitimate regulated operators who comply with South African licensing, taxation and responsible gambling obligations.

Thirdly, the association works closely with licensed operators to strengthen compliance standards and maintain the credibility of the regulated market. A strong legal market is the best long-term defence against illegal competition.

Ultimately, if regulatory burdens on licensed operators become disproportionate while illegal operators continue operating freely, consumers will inevitably migrate toward unregulated platforms. Effective policy must therefore balance robust regulation with commercial competitiveness.

In the era of rising cyber threats, data breaches and betting fraud, how is the association helping operators strengthen data security, integrity monitoring and player protection systems?

Cybersecurity and data integrity have become critical operational priorities across the betting sector. Modern betting operators process enormous volumes of sensitive personal, financial and transactional data, making them potential targets for cybercrime, identity theft and fraud syndicates.

The association encourages members to align with international best practices relating to:

• cybersecurity governance,
• penetration testing,
• encryption standards,
• fraud detection,
• anti-money laundering systems,
• multi-factor authentication,
• suspicious betting monitoring, and
• incident response protocols.

Sporting integrity is also a growing area of focus. SABA’s long-held view (which aligns with the view of most reputable racing and betting jurisdictions worldwide is that P2P betting exchange operations are inherently undesirable as are prediction markets. There is at present no statutory authority for exchange betting in South Africa which helps drive sporting integrity.

Importantly, regulated operators are subject to compliance obligations and audit requirements that illegal offshore operators typically avoid entirely. This again reinforces why consumers are safer within regulated markets.

Is Africa’s betting industry creating sustainable entertainment economies or quietly monetizing unemployment, poverty and desperation among young people?

This is an important societal question and one that deserves a nuanced response rather than simplistic conclusions. Betting exists within broader socioeconomic realities that include unemployment, inequality, digitalisation and changing entertainment consumption patterns.

For many consumers, betting is a form of entertainment similar to other discretionary leisure activities. The regulated industry also contributes significantly through employment, taxation, technology investment, sponsorship, media rights and formal economic participation.

However, the industry also recognises that vulnerable consumers may engage with gambling for problematic reasons, particularly in economically distressed environments. This is precisely why robust regulation, age verification, responsible gambling interventions and targeted consumer protections are necessary. The industry has for more than 20 years, been a partner and contributor to the South African Responsible Gambling Fondation. The SARGF is unparalleled in the work that is does in this area, supported by the industry.

The solution is not prohibition. International evidence consistently shows that excessive restriction often strengthens illegal gambling markets rather than eliminating gambling activity. The better approach is balanced regulation combined with broader socioeconomic interventions that address underlying economic vulnerability.

Illegal operators continue thriving across Africa despite growing regulation. Is this evidence that regulators are losing the technological battle against underground gambling networks?

Illegal operators are certainly exploiting technological advantages, particularly around digital payments, decentralised infrastructure, crypto-assets, social media marketing and cross-border operations. Regulators globally—not only in Africa—are facing similar challenges.

However, this should not be characterised as regulators “losing” the battle. Rather, regulatory models are having to evolve far more rapidly in response to technological disruption. Traditional enforcement mechanisms designed for land-based gambling environments are often inadequate for borderless digital ecosystems.

What is increasingly clear internationally is that enforcement alone is insufficient. Effective regulation requires:

• modernised legislation,
• cross-border regulatory cooperation,
• technology-enabled monitoring,
• collaboration with payment providers and internet intermediaries,
• and commercially viable regulated alternatives.

The regulated industry has a strong interest in helping regulators modernise enforcement capabilities because illegal markets harm both consumers and licensed operators alike. There is a clear need for a hybrid regulatory model in South Africa. We need to move away from passive prohibition to aggressive enforcement.

Does fragmentation of gambling regulation across African jurisdictions create loopholes that illegal operators exploit?

Yes, fragmentation creates substantial enforcement vulnerabilities. Differing licensing standards, inconsistent advertising rules, varying tax models and uneven enforcement capacity across jurisdictions allow illegal operators to exploit regulatory arbitrage opportunities. Pseudo licensing jurisdictions are well known for this.

Many offshore operators strategically position themselves in jurisdictions with lighter oversight while targeting consumers across multiple African countries digitally. This makes enforcement extremely difficult where regulators operate within purely national frameworks.

Greater regional cooperation, harmonisation of standards and intelligence-sharing between regulators would significantly improve enforcement effectiveness. There is increasing recognition across Africa that gambling regulation can no longer be approached solely through isolated domestic frameworks in a digitally interconnected market. The Gambling Regulators Africa Forum (GRAF) is the perfect platform to achieve this. They meet on an annual basis and embrace the participation of the industry having recognised the need for regulated harmonisation.

Why should regulators trust operators to self-regulate when revenue models are fundamentally tied to keeping players betting longer and losing more?

Regulators should never rely exclusively on operator self-regulation. Effective gambling regulation requires independent oversight, enforceable compliance obligations and meaningful sanctions for misconduct.

However, regulators should also recognise that licensed operators have strong commercial incentives to maintain sustainable, trusted and compliant businesses over the long term. Reputable operators understand that consumer confidence, regulatory stability and market legitimacy are essential to long-term viability.

The modern regulatory model internationally is increasingly based on co-regulation rather than pure self-regulation. This involves:

• mandatory compliance frameworks,
• independent audits,
• real-time monitoring,
• data reporting obligations,
• responsible gambling controls,
• and escalating enforcement mechanisms.

A properly regulated licensed operator is subject to transparency, accountability and oversight. Illegal operators are subject to none of these constraints. The policy objective should therefore be to continuously strengthen standards within the regulated sector while aggressively disrupting the illegal market that operates entirely outside consumer protection frameworks.