SABA warns of rising illegal online gambling in South Africa during Responsible Gambling Month

As South Africa observes Responsible Gambling Month this November, the South African Bookmakers’ Association (SABA) has raised the alarm over the unchecked rise of illegal online gambling, which now accounts for an estimated 62% of all online gambling activity in the country. This growing trend poses a serious threat to consumers, licensed operators, and the national economy.

At a media briefing on the issue, SABA CEO Sean Coleman emphasised the scale of the problem: “While much of the recent public and media debate has focused on the growth of legal online betting, the existential crisis lies in the scale and impact of illegal offshore operators that continue to target South African consumers unchecked.

"These illegal operators pay no local taxes, contribute nothing to responsible gambling programmes, have no enforceable self-exclusion mechanisms, and pose serious risks to vulnerable players. Every rand spent on these offshore sites is money that leaves the South African economy, undermining jobs, tax revenues, and community investment supported by the legal betting industry.”

The Yield Sec South Africa 2023/24 Report, commissioned by SABA, reveals that illegal offshore platforms dominate the local online gambling landscape. Of the total online gambling activity, 62% is attributed to unlicensed operators, while only 38% is held by licensed South African entities. The report identified 2,084 unlicensed websites actively targeting South African users, with an estimated 16 million people, roughly 27% of the population, engaging with these platforms in the past year.

“The financial impact is staggering. Illegal operators are estimated to be diverting over R50 billion in gross gambling revenue (GGR) offshore annually, depriving South Africa of significant tax income and social contributions that would otherwise support local communities, responsible gambling initiatives, and public programmes," Coleman says.

According to Coleman, in contrast, licensed operators contribute to the fiscus through various taxes and compliance costs, including 15% VAT, corporate tax, and a 6.5% tax on gross gaming revenue. They also invest in responsible gambling programmes, player protection systems, and socio-economic development.

Gambling in South Africa is a concurrent competence, meaning operators are licensed and regulated at the provincial level under both the Provincial and National Gambling Acts. However, most illegal operators are based in jurisdictions such as Curacao, Malta, Gibraltar, and the Philippines, where they obtain so-called “pseudo-licenses” with minimal oversight, he says.

These offshore entities aggressively market to South African consumers using digital advertising, affiliate networks, and influencers. They offer no local accountability or consumer protection in cases of fraud, non-payment, or exploitation, he says.

Despite clear prohibitions in Sections 8 and 11 of the National Gambling Act (2004), illegal operators continue to exploit local payment systems, including EFTs, bank transfers, and credit card processing via third-party providers, to facilitate transactions.

Coleman warned of the dangers: “Because these operators are unlicensed, winnings are not legally enforceable and can be forfeited to the state under Section 16 of the National Gambling Act. Players have no protection if a site refuses payment or manipulates results, and many illegal platforms are linked to fraud, identity theft and data breaches. In addition to personal financial loss, participation in unlawful gambling is itself an offence, and transactions may be blocked or investigated by banks.”

Proposed interventions and industry action

To address the crisis, Coleman outlined several urgent measures:

• DNS and IP blocking, as well as geo-fencing, to restrict access to illegal sites
• Payment blocking and merchant code filtering to disrupt transactions
• Cease-and-desist actions and prosecutions in collaboration with provincial gambling boards
• Stronger inter-agency enforcement, drawing on international models from the UK, Australia, and Finland
• Restrictions on affiliates and influencers promoting illegal platforms
• Public awareness campaigns to help consumers identify legal versus illegal sites

SABA says it has already taken steps to combat the issue, including:

• Signing a memorandum of understanding (MOU) with SABRIC and engaging the banking sector
• Establishing a banking sector task force to implement targeted interventions
• Partnering with a Provincial Gambling Board to issue cease-and-desist notices, gather evidence, and explore legal action

Coleman says: “This is a solvable problem. We have the data, the technology, and the partnerships to act. We also have good legislation in place with legal case law precedent. What’s needed now is alignment between regulators, government, the banking sector, and law enforcement to protect South Africans from illegal gambling harm.”

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