Two-thirds of South Africa’s R74.5 billion annual gross gambling revenue is being siphoned by illegal offshore online operators based in jurisdictions such as Curaçao, Malta, Gibraltar and the Philippines.
This is according to the South African Bookmakers Association (SABA), which says more than R50 billion in gross gambling revenue is diverted offshore each year, with an estimated 16 million South Africans having engaged with illegal platforms in the past year.
“The majority of online gambling activity in South Africa is still taking place outside the regulated system. That means millions of consumers are exposed to operators who pay no local taxes, provide no consumer protection, and operate entirely outside of South African law,” says SABA CEO Sean Coleman.
Show me the money
National Treasury’s discussion paper on a proposed national gambling tax puts total gross gambling revenue – the difference between the amount played and winnings – at R74.5 billion in the 2024/25 financial year, a 25.6% increase from the previous year.
Much of this spending has shifted online. The South African Reserve Bank’s latest Quarterly Bulletin notes that the post-COVID-19 increase in betting was largely driven by a surge in online activity as lockdowns shut physical casinos.
Online betting revenue accounted for 80.7% of total betting revenue, the amount wagered, in 2023/24 and 85.5% in 2024/25, SARB says.
“The COVID-19 pandemic brought about a notable shift in gambling behaviour,” says SARB, with operators expanding advertising efforts and the variety of betting options available online.
SABA’s research lists a sample of 49 unlicensed websites it found that offer online gambling to South Africans, including 1xBet.com, 22BetCasino and 888 Casino.
The authorities battle to shut down illegal sites because, each time one site is blocked, they simply change URLs in a game of whack-a-mole.
However, government and industry have diverging views on what constitutes illegal gambling. The National Gambling Board (NGB) argues that no online gambling is allowed, while sports betting is.
Several lawyers have told ITWeb this is incorrect: online gambling is allowed if the operator is licensed by one of the provinces.
The NGB says on its website that, as the regulatory authority responsible for safeguarding the integrity of the country's gambling sector, it is working with provincial authorities “to combat the rise of unlawful online gambling activities in SA”.
It says this “follows a growing concern over the proliferation of unlicensed gambling websites and platforms targeting SA consumers, often without regard for local gambling laws or consumer protection”.
Unwise bet
Consumers who use illegal platforms face serious consequences. SABA explains that, under South African law, such winnings can be forfeited to the state, and individuals may face prosecution for participating in illegal gambling activities.
“Many consumers are unaware that using these sites is not only risky, but unlawful,” Coleman says. “There is no guarantee that winnings will be paid out, and players have no recourse if they are defrauded or exploited. There is also the unregulated risk of gambling harm.”
Gambling harm refers to the financial, psychological and social impacts of excessive betting, including debt, addiction and strain on households. In unregulated environments, these risks are heightened due to limited consumer protections and fewer safeguards against excessive play.
Licensed operators are required to display their licence details, including their registered entity name and the relevant provincial gambling board, and are subject to strict regulatory oversight, including age verification, anti-money-laundering controls and responsible gambling measures, says SABA.
By contrast, illegal operators often display foreign licences that have no standing in South Africa, notes the association.
“Choosing a licensed operator is about protecting yourself,” says Coleman. “Consumers should take a moment to check who they are betting with. If the operator is not licensed in South Africa, they are operating illegally, and by betting with such an operator, the South African consumer is committing an offense in terms of the National Gambling Act.”
* The South African Responsible Gambling Foundation offers free, confidential counselling and treatment for people affected by problem gambling. Contact details for Gamblers Anonymous are here.
Share
