Online gambling crackdown in South Africa
The South African Department of Trade, Industry, and Competition (DTIC) is intensifying efforts to combat illegal online gambling as the nation’s gambling sector experiences significant growth. Trade, Industry, and Competition Minister Parks Tau highlighted government strategies to tackle this issue in response to a parliamentary inquiry.
Under the National Gambling Act of 2004, online gambling—excluding sports betting—is prohibited in South Africa. This ban encompasses online casinos, poker, and other remote gambling activities. Participation in such activities is illegal for South Africans unless the platform is licensed by the National Gambling Board, regardless of the website’s location. Conversely, sports betting, including horse racing, is legal and regulated, provided it is conducted through licensed bookmakers authorized by provincial authorities.
Minister Tau acknowledged the escalating challenge of illegal online gambling and noted instances where bookmakers unlawfully offer online gambling services. The National Gambling Board is collaborating with law enforcement agencies to address these violations, including conducting awareness campaigns. Discussions are planned within the National Gambling Policy Council to strengthen these initiatives.
Despite the industry’s positive economic contributions—such as revenue generation and job creation—there are concerns about problem gambling and associated social issues. The National Gambling Board’s recent statistics indicate a substantial increase in the industry’s turnover, with a 40.2% rise to R1.1 trillion in the 2023/24 financial year. Gross gambling revenue reached R59.3 billion, a 25.7% increase from the previous year, with betting accounting for 60.5% of this revenue.
To mitigate negative impacts, the DTIC, provincial licensing authorities, the National Gambling Board, and other institutions are collaborating on prevention initiatives, including education and awareness programs across all provinces. Licensed operators contribute a portion of their gross gambling revenue to fund counseling and rehabilitation services provided by the South African Responsible Gambling Foundation.
