The illegal sector robbing South Africa of R50 billion

South Africa’s gambling industry is losing out on R50 billion in gross gambling revenue (GGR) due to illegal operators, which account for around 62% of total online gambling activity in the country.

This equates to around 2,084 unlicensed gambling websites that target South Africans, with around 16.3 million people estimated to have interacted with these platforms in the past year.

This is according to the South African Bookmakers’ Association (SABA) in a recent media briefing, which outlined the country’s severe illegal gambling problem.

SABA CEO Sean Coleman explained that a lack of regulatory oversight presents a significant challenge to addressing South Africa’s illegal gambling problem.

In South Africa, gambling is considered a concurrent competence, meaning licence-holders are regulated at a provincial level.

These holders operate under bookmaker licences issued and monitored by the provincial gambling boards, in accordance with both the Provincial and National Gambling Acts.

SABA explained that most illegal gambling operators noted in South Africa are hosted in offshore jurisdictions such as Curacao, Malta, Gibraltar, and the Philippines, where ‘pseudo-licenses’ are issued with minimal oversight. 

The organisation said these entities use aggressive digital marketing, affiliate and influencer networks to reach South African consumers.

However, they offer no local recourse, accountability, or consumer protection in the event of fraud, non-payment, or harm.

In addition, unlike licensed gambling operators, these entities do not contribute to the national fiscus through taxation and compliance fees.

SABA estimates that illegal operators are diverting over R50 billion in GGR offshore annually, depriving South Africa of significant tax income.

Coleman warned that South African consumers who use illegal online gambling sites also face significant risks by interacting with these operators. 

This is because 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,” he warned.

The graphs below, shared by SABA, show the proliferation of illegal online gambling sites in South Africa, with operators in jurisdictions outside the country highlighted in red.

Gambling concerns in South Africa

South Africa has seen a significant increase in gambling over the past few years, mainly driven by a boom in online betting.

The National Gambling Board recently revealed that gambling turnover reached a record R1.5 trillion in the 2024/25 financial year, up from R1.1 trillion in 2023/24.

In addition, gross gambling revenue amounted to R75 billion in 2024/25, up from R59.3 billion in the prior year.

Betting, which includes online betting, generated around 70% this total, at R52.3 billion, while casinos contributed R16.6 billion, or 22% of the total.

This significant increase in the popularity of online gambling has raised serious concerns, as many are concerned about the effect it is having on South African households.

Old Mutual’s Savings and Investments Monitor for 2025 revealed that 52% of working South Africans gamble, with this activity being most prevalent among men aged 30 to 49.

Just over 60% of gamblers gamble at least once a week, with close to 40% gambling even more frequently. Approximately 10% of respondents report gambling every day.

An Experian report also recently found that as much as 50% of social security grants to younger groups are spent on gambling.

Similarly, the middle market segment spends between 38% and 50% of their income on gambling, 30% more than on groceries.

In SABA’s presentation, Coleman said South Africa’s legal gambling industry is heavily regulated and responsible.

He said licensed operators, through the National Gambling Board, are also required to contribute 0.1% of gross gambling revenue to the National Responsible Gambling Programme.