SOUTH Africa is experiencing an unprecedented surge in online gambling,
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ILLEGAL offshore gambling continues to dominate South Africa’s online betting landscape, diverting more than R50 billion a year out of the country and exposing millions of users to fraud, financial loss and possible prosecution.
That is according to the South African Bookmakers Association (SABA), which on Tuesday raised alarm over what it describes as a deeply entrenched illicit market operating beyond the reach of local regulators.
A data-driven report commissioned by SABA from global research firm YieldSec in November 2024 found that illegal operators account for about 62% of all online gambling activity in South Africa. The same report estimates that around 16 million South Africans engaged with these platforms over the past year.
“While the positive impact of re-channelisation away from the illegal market is acknowledged and supported by SABA, not enough is being done to address this area of the illicit economy,” said SABA CEO Sean Coleman.
Illegal gambling, as defined under South African law, occurs when players place bets with operators that are not licensed locally. In terms of the National Gambling Act (2004), it is unlawful both to offer and to participate in gambling services without a valid South African licence.
Yet offshore operators continue to target local consumers, often presenting so-called licences from jurisdictions such as Curaçao, Malta, Gibraltar and the Philippines. These licences carry no legal standing in South Africa and offer no protection to users.
“These numbers are deeply concerning,” Coleman said. “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.”
He added that each transaction on a foreign-based gambling platform constitutes unlawful activity, facilitated in part through local financial systems.
“Each time a player located in South Africa places a bet on a foreign based online gambling site an unlawful gambling activity occurs, with such illegal gambling activity being facilitated by, among others, the bank of the player in South Africa,” said Coleman. “As such, South African banks, third party payment providers, and credit card institutions serve as a conduit between the SA online gambler’s banking account and the foreign based gambling website operator’s banking account, without which the unlawful gambling transaction would not be able to occur.”
Sections 8(a) and 11 of the National Gambling Act 7 of 2004 prohibit engaging in or making available any gambling activity that is not licensed within the country.
For consumers, the risks extend beyond financial loss. Winnings from illegal gambling are not legally protected and may be confiscated by the state. Participants also face the possibility of prosecution.
SABA said it is working with the banking sector to enforce these provisions.
“Many consumers are unaware that using these sites is not only risky, but unlawful,” Coleman said. “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.”
The association has urged South Africans to verify that operators are locally licensed, noting that legal platforms are required to display their licence details, including their registered entity name and the relevant provincial gambling board.
Unlicensed operators, by contrast, typically display foreign credentials or reference offshore jurisdictions that do not authorise them to operate in South Africa.
Licensed operators are subject to regulatory oversight, including age verification, anti-money laundering controls and responsible gambling measures — protections largely absent in the illegal market.
“Choosing a licensed operator is about protecting yourself,” Coleman said. “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.”
SABA said it will continue working with regulators, law enforcement and the banking sector to curb illegal gambling and protect consumers.