South Africa’s regulatory authorities need to take inspiration from international partners and address the growing issue of online betting and gambling, which has become a ‘wild west’ causing significant social problems.
This call comes from Rise Mzansi MP Makashule Gana, following India’s recent decision to ban certain forms of “online money games” and related advertising.
Indian lawmakers cited concerns over addiction, financial damage, and potential links to money laundering and terrorism financing as key reasons for their legislative action.
Gana, who warned parliament about the dangers of online gambling last November, expressed deep concern about its impact on individuals and families. “The legislative landscape needs to change to protect vulnerable South Africans from the harms of online money games,” Gana said in an interview with TechCentral.
He added that if these companies do not face accountability for their impact, it could lead to a situation where funds meant for development are diverted to rehabilitate online gambling addicts.
Currently, South African law distinguishes between fixed-odds sports betting, which is legal, and online gambling, which is not permitted. However, Gana pointed out that many sports betting outlets are now offering “casino-like” games that blur this distinction, contributing to the rise of gambling addiction.
The increasing use of technology to deliver these services directly to individuals via mobile phones is a major factor in this trend. Massive advertising campaigns on billboards, websites, and television further promote these games.
Gana noted that the Department of Trade, Industry and Competition is working with industry stakeholders to create regulations governing the advertising of online money games
Gana criticized the current state of advertising, stating, “The advertising has gone overboard.” He believes that industry players need to change their marketing strategies, avoiding misleading promises of quick wealth and instead promoting responsible gambling practices.
South Africa’s gambling laws are outdated. The National Gambling Amendment Act of 2008 aimed to modernize regulations by incorporating “interactive games” played via remote devices like cellphones and computers. However, these amendments have yet to be enacted.
In November 2024, the Remote Gambling Bill was introduced as a private member’s bill to fill the legislative gaps in online gambling. DA national spokesman Toby Chance noted that while a complete ban on online gambling, similar to India’s, may be too restrictive, effective regulation is essential to mitigate harm.
Toby Chance emphasized the need to protect individuals from the harmful effects of gambling addiction, which can lead to severe psychological, social, and economic consequences.
“The DA is not in favor of banning all online gambling. However, my private member’s bill introduces measures to control and restrict advertising, adds protections for vulnerable individuals and minors, and establishes penalties for non-compliance.” He stated
