South Africa Intensifies Crackdown on Illegal Offshore Gambling Websites

South Africa intensifies action against illegal offshore gambling

The National Gambling Board has initiated a procurement process for a service provider that will monitor, detect, block and report illegal online gambling websites operating outside South Africa while targeting local players.

The move intensifies the country's regulatory response to offshore operators that continue to offer gambling services without local licenses or regulatory oversight.

According to a 2024 Yield Sec report commissioned by the South African Bookmakers' Association (SABA), illegal operators account for approximately 62% of South Africa's online gambling activity, diverting more than R50 billion in gross gambling revenue offshore every year.

The same study estimates that 16 million South Africans accessed these unlicensed gambling platforms over the past 12 months.

Consumer protection and tax compliance

Unlike licensed operators, illegal offshore gambling websites do not contribute tax revenue in South Africa and operate outside the country's regulatory framework.

As the government intensifies enforcement efforts, consumers are expected to benefit from stronger safeguards in cases involving disputes, unpaid winnings and unfair practices, concerns that have gained prominence alongside a significant increase in problem gambling over the past five years.

Online gambling continues to reshape the South African market

Although South Africa's economy has experienced modest growth during the last decade, the licensed gambling industry has continued to expand.

Official figures show that gross gambling revenue generated by licensed operators increased by 25.7% during the 2024 financial year, with online gambling identified as the main driver of that growth.

Government intensifies regulatory measures

The website-blocking initiative follows growing political and public debate over online gambling, particularly reports that economically vulnerable consumers are using grocery budgets, social welfare payments and student grants to finance betting activities.

Among the measures previously proposed by the National Treasury is a 20% tax on gross gambling revenue generated by online and offshore operators, alongside tighter restrictions on gambling advertising, with some stakeholders advocating a complete ban.

The NGB's tender also requires the successful bidder to continuously monitor blocked websites and prevent operators from quickly reappearing under different domain names, a tactic frequently used by illegal gambling platforms.

Industry backs stronger enforcement as South Africa intensifies oversight

The National Gambling Board's latest strategic plan outlines closer cooperation with law enforcement agencies, financial institutions and digital service providers to combat illegal gambling.

SABA welcomes the government's initiative

Sean Coleman, CEO of the South African Bookmakers' Association, expressed support for the regulator's approach.

"We fully support the NGB's heightened enforcement actions that include a technological component, high court forfeiture operations, and the coordinated legislative push to eradicate these illicit networks."

He added: "By declaring war on illegal, unregulated platforms, particularly ahead of or during high-volume sporting periods like the 2026 World Cup, the NGB is taking an essential step toward safeguarding vulnerable citizens and protecting the integrity of the domestic economy."

Coleman also argued that South Africa should move beyond policy discussions and implement stronger enforcement tools as the government intensifies its fight against illegal offshore gambling.

Legislative reforms proposed for the gambling sector

SABA has outlined six priority measures aimed at strengthening South Africa's response to illegal online gambling.

Website blocking and stronger legal powers

Among its recommendations are amendments to the National Gambling Act to clearly define illegal offshore gambling operators targeting South African consumers, expand enforcement powers and clarify the law's extraterritorial application.

The association also proposes changes to the Electronic Communications Act, establishing a legal framework that would authorize regulators to block illegal gambling websites through judicial oversight, transparent procedures and a public register of banned operators.

Internet providers call for balanced enforcement

While supporting stronger action against illegal gambling, the Internet Service Providers' Association (ISPA) has cautioned that any website-blocking regime should be implemented under a clear statutory framework with judicial oversight and transparent decision-making processes.

The organization warned that overly broad blocking powers could inadvertently affect legitimate websites and create wider concerns regarding internet censorship.

ISPA also argued that website blocking should form part of a broader enforcement strategy, combined with payment blocking, advertising restrictions and other regulatory tools.

International examples support the strategy as enforcement intensifies

Industry stakeholders have pointed to international jurisdictions that have successfully strengthened enforcement against illegal gambling operators.

Australia cited as a successful model

Australia's 2017 amendments to its Interactive Gambling Act granted regulators greater authority to act against offshore gambling operators targeting Australian consumers.

According to industry data, the reforms have resulted in the blocking of more than 1,300 illegal gambling and affiliate websites, while approximately 220 offshore operators have exited the Australian market.

As South Africa intensifies its enforcement strategy, regulators and licensed operators view these international examples as evidence that coordinated regulation, technological monitoring and legislative reform can reduce illegal offshore gambling, strengthen consumer protection and preserve the integrity of the regulated gambling market.