TLDR
- South Africa’s National Gambling Board is reaching out to foreign regulators to stop offshore betting sites from targeting local players.
- Licensed operators generated about R75 billion in turnover last year, while unlicensed activity may total as much as R5 trillion.
- Offshore sites are often licensed in Gibraltar, Malta, the Philippines, and the UK but operate in South Africa without local approval.
- The board is working with intelligence agencies, telecom regulators, and police to block access to illegal gambling websites.
- Shoprite’s chief executive says household spending meant for essentials is being redirected toward unregulated betting.
South African gambling regulators are asking for help from other countries. They want to slow down the growth of offshore betting sites.
These sites attract local players. They also move large sums of money outside the country’s regulated system.
Numbers shared with Parliament show the scale of the issue. Licensed online operators brought in about R75 billion in turnover over the past year.
Regulators believe unlicensed activity could be worth as much as R5 trillion. That number covers websites operating outside South African oversight.
The National Gambling Board says many of these sites are based overseas. Acting chief executive Lungile Dukwana told lawmakers that operators licensed in Gibraltar, Malta, the Philippines, and the United Kingdom have expanded into South Africa.
These companies hold licenses in other countries. But they have not applied for approval to operate locally.
Reaching Across Borders
This creates a tricky situation for regulators. The operators are legal where they are based, but South Africa has no direct power over them.
The National Gambling Board has started talking with regulators and licensing bodies in those countries. The goal is to limit access for South African users.
Dukwana said some foreign regulators have responded well. Some are now working to stop operators from targeting the South African market.
At home, the board has teamed up with other government bodies. This includes intelligence agencies, the Department of Communications, and the Independent Communications Authority of South Africa.
Law enforcement is also involved. Together, these groups are working to block internet addresses linked to illegal gambling platforms.
Impact on Household Spending
The growth of illegal betting has caught the attention of businesses outside the gambling industry. Shoprite’s chief executive, Pieter Engelbrecht, raised concerns about consumer spending habits.
He said money that households normally spend on basic needs is increasingly going toward betting. South Africa is currently dealing with high costs of living, which makes this shift more visible.
The National Gambling Board is pushing for broader policy talks. These would happen through the National Gambling Policy Council.
Dukwana said the board has submitted proposals for review. These cover online gambling, betting exchanges, and ways to trace past losses.
Lawmakers have questioned whether current rules can handle gambling businesses that operate across borders. Some say enforcement powers and oversight tools have not kept pace with the market’s growth.
For now, authorities are relying on international cooperation, technical measures, and policy changes. The aim is to bring more of the online gambling market back under South African oversight.
