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South Africa to Crack Down on Excessive Gambling Advertising

South Africa Prepares to Crack Down on Excessive Gambling Advertising

The era of gambling operators dominating South Africa airwaves, billboards, and sports pitches may soon come to an end. The Department of Trade, Industry and Competition (dtic) is currently drafting new rules and standards for gambling advertising. Officials expect to publish these regulations by July 2026. This move responds directly to calls for tougher restrictions following a massive surge in online betting since 2021.

The government aims to curb the social harm caused by unregulated and aggressive marketing. Dtic director-general Simphiwe Hamilton confirmed that the new norms will address the scale of these promotions. Beyond advertising, the department is also targeting illegal offshore operators. These entities often target South Africans from jurisdictions like the Isle of Man and the Philippines without contributing to the local tax base.

To strengthen oversight, a National Gambling Amendment Bill is currently before Parliament. This legislation proposes repositioning the National Gambling Board (NGB) as a primary regulator. It also aims to create a register of unlawful operators and enforce stricter player protection measures. Additionally, the National Treasury has proposed a 20% national tax on gross gaming revenue to manage the industry’s growth.

Political group Rise Mzansi has spearheaded the call for reform with several specific proposals. They suggest banning gambling ads during peak morning and evening hours. Their plan also includes raising “sin taxes” on online gambling and increasing operator contributions to the South African Responsible Gambling Foundation to 1% of gross revenue. Furthermore, they propose a mandate forcing companies to dedicate 40% of their marketing budgets to responsible gaming messages.

The financial and social toll of the current gambling boom is significant. Research by Experian and Vault22 shows a clear link between betting and financial distress. Some of the most vulnerable citizens are reportedly spending up to 40% of their gross income on bets. Even wealthier groups are spending nearly half of their income on gambling, often exceeding their expenditure on essential groceries.

Several major South African corporations have sounded the alarm over this trend. Leaders from Capitec, Pick n Pay, and The Foschini Group (TFG) worry that gambling is displacing consumer spending on essential goods. Pick n Pay CEO Sean Summers has even called for a total ban on gambling advertising to protect the country’s most vulnerable groups. This sentiment is echoed by over 100 labor and community organizations demanding a national action plan.

The political landscape surrounding these reforms is complex. Large donations to major political parties from industry-linked individuals have raised concerns about policy influence. While some parties like the DA have introduced their own Remote Gambling Bills, critics argue these proposals are too soft. As the industry continues to report revenues exceeding R74 billion annually, the pressure for comprehensive legislative change continues to mount.

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