The Botswana Gambling Authority (BGA) and the Financial Intelligence Agency (FIA) have initiated a joint investigation into eight offshore betting sites operating without licenses in Botswana. These platforms, based outside the country, use local agents to attract users and process payments, thereby evading national regulations.
In a statement, the FIA and BGA revealed that they had engaged with mobile operators and banks after confirming that “illegal online betting websites transact using both mobile money platforms and bank accounts.” To restrict local access, the agencies have partnered with the Botswana Communications Regulatory Authority (BOCRA) and Botswana Fibre Networks (BoFiNet) to implement IP blocks on these sites.
Financial institutions and mobile money services have been instructed to monitor account activity continuously, in line with established risk management protocols. They are also directed to swiftly freeze and report any suspicious transactions. This investigation tackles a recurring issue in Botswana’s gambling sector, where unlicensed operators siphon funds from local players. The eight sites are owned by non-citizens and hosted in foreign jurisdictions, relying on affiliates in Botswana to promote bets and manage payouts.
Under the Gambling Act of 2012, operators found guilty of such activities face fines of up to P180,000 (€10,700) or 15 years in prison for a first offense. Repeat offenders could incur penalties of up to P240,000 (€14,300) or face 20 years of imprisonment. Regulators estimate that illegal betting drains hundreds of millions of pula annually from the economy, equating to over €30 million, primarily through online sports wagers.
A study by the BGA and the University of Botswana places the total at P500 million (€29.7 million) each year double the size of the licensed market. Only about 40% of Botswana’s approximately 550,000 active gamblers use licensed platforms. However, the investigation faces practical challenges. When one site is blocked, unregulated operators quickly launch mirror sites with new domains. In response, users create fresh bank or mobile accounts to bypass freezes. The use of anonymous digital payment tools and redirects from obscure affiliate pages further complicates enforcement efforts.
To combat these tactics, the BGA is enhancing enforcement measures alongside public awareness campaigns. It urges bettors to verify the legitimacy of sites on its website before placing wagers. In the long run, the authority is collaborating with AI platforms to empower users to verify operators independently.
