The government is stepping up its crackdown on illegal online betting platforms, which are said to make up 62% of the market in which South Africans spend billions of rand. New measures suggest the National Gambling Board (NGB) has yielded to industry pressure to restrict unregistered online platforms that offer betting services to consumers.
The regulator has put out a request for expressions of interest to identify service providers capable of blocking illegal gambling websites. The NGB says that blocking illegal betting sites will help suppress illegal gambling activity as envisaged in the National Gambling Act (NGA).
In its submission, the regulator acknowledges that illegal gambling in South Africa has expanded rapidly in both land-based and online forms, driven by technological advancement, policy gaps, and organized criminal activity. It argues that this undermines the integrity of the regulated gambling industry, erodes provincial and national revenues, and exposes vulnerable groups, including minors and problem gamblers, to significant harm.
The NGB states that South Africa struggles to enforce against illegal interactive gambling that offers betting activities to South Africans without a license. It says the enforcement challenge is worsened by the fact that illegal operators are offshore, often operating from foreign jurisdictions.
It further notes that illegal operators increasingly exploit online platforms, internet cafés, digital wallets and cryptocurrency transactions, and cross-jurisdictional loopholes to avoid detection and regulatory oversight.
The regulator also says that licensed operators are affected by unlawful competition and noncompliant online betting practices that weaken the fairness of the regulated environment. According to the expression of interest document, websites will be blocked each time illegal operators attempt to offer gambling to local punters again.
The NGB says the data collected will be shared with law enforcement to help ensure that illegal online gambling operators are held to account in court and face penalties as provided for in the NGA. The regulator adds that licensed operators are subject to strict oversight, including age verification, anti-money-laundering controls, and responsible gambling safeguards that it says largely do not exist in the illegal market.
A study commissioned by the South African Bookmakers Association (Saba) claims that illegal offshore gambling dominates South Africa’s online betting landscape. Saba CEO Sean Coleman says illegal gambling occurs when South African players place bets on foreign-based online platforms that are not licensed locally.
He argues that much of online gambling still takes place outside the regulated system, exposing millions of consumers to operators that pay no local taxes, provide no consumer protection, and operate entirely outside South African law. Coleman also says unlawful gambling is facilitated through the financial systems that enable transactions between players and offshore operators.
He notes that when South African players place bets on foreign-based sites, an unlawful gambling activity occurs, and that this is made possible through the bank of the player and related payment services. He says banks, third-party payment providers, and credit card institutions can act as conduits between a South African gambler’s banking account and the offshore operator’s banking account, without which the transactions would not occur.
The NGB’s move to rein in illegal online betting is part of a broader crackdown that may also include legal entities. Among the measures under consideration is a ban on betting advertisements, similar to steps taken in the cigarette industry in the 1990s. The National Treasury has also proposed a 20% tax on the online gambling industry as a way to curb harmful gambling.
Critics, however, argue that this would only divert punters to illegal platforms and could become an administrative burden for the South African Revenue Service. For the 12 months to March 2025, industry data indicates that total gambling turnover across all modes amounted to R1.5 trillion, including recycled funds, meaning money that is wagered, won back, and wagered again.
