Can South Africa bookies and campaigners see a shared enemy in regulatory fragmentation?
The exponential growth of South Africa’s betting market is an active opportunity for both domestic and international firms, yet its proceedings are mounting scrutiny from political parties and campaign groups.
According to South African media outlet The Mercury, a new organisation has formed with the express intent of banning online betting in South Africa – the Civil Society Coalition Against Online Gambling.
The group has caught media attention led by Dhilosen Pillay, the former Chairperson of the Free State Tourism Authority, and according to LinkedIn the current CEO of the organisation, a regulatory body in the Free State province in the centre of South Africa.
The Mercury reports that the organisation has a fully mapped out campaign strategy that includes petitions, educational awareness initiatives, and protest marches. However, its goals are not entirely clear.
Media reports state that 107 organisations have called for a national ban on online betting, signing the the Civil Society Declaration on the Harm of Online Gambling. Quotes attributed to Pillay do not go this far though, instead calling for stronger national regulation, while other campaign members are calling for an outright ban on gambling advertising.
South Africa – a standout market
African gambling markets have been catching a lot of industry attention lately, and for good reason. The gold rush in Latin America seems to be leveling off, and while growth potential is still high in new market beasts like Brazil, so is the competition.
Africa, home to some large populations, growing economics, rising purchasing power and rapidly improving technological infrastructure, including growing rates of mobile phone penetration, seems to be the next big thing.
Super Group, the parent company of Betway and Spin, certainly seems to think so – and its financial statements prove it. The group’s Q3 2025 financials showed revenue of €219m from Africa and the Middle East, up significantly from €164m the year prior.
Coincidentally, Betway counts South Africa as one of its key African markets, perhaps even its biggest one. Gaming in general is growing across Africa, with Botswana the latest to join the wave while Nigeria, Kenya, Uganda and Ghana, among others, also have considerable potential, but South Africa is widely seen as the best bet for international businesses.
African markets are often subject to a lot of regulatory uncertainty for one thing, with taxation rates particularly susceptible to change. South Africa in contrast is relatively stable, governed by a 2004 National Gambling Act, amended once in 2008.
However, a clear change in public and political opinion driven by the stark growth enjoyed by the country’s betting market might change all this.
The numbers don’t lie
The latest figures from the National Gambling Board of South Africa (NGB) showed just how significantly the South African betting and gaming market has been growing in recent years, with online bookmaking, land-based casinos and lotteries the most popular products.
Total gaming revenue for the 2023/24 financial year rose 25.7% from R47.2bn to R59.3bn (€2.9bn). This was driven by a 72% increase in online betting and gaming between 2018-2023 and a 26.5% increase in slot machine revenue, while casinos continue to account for around 80% of market share despite revenue growth remaining rather flat.
The growth of this industry in a country which continues to face significant socio-economic challenges was always going to turn some heads though. South Africa may be Africa’s largest economy by nominal GDP, but it is also one with a very high poverty rate, with some estimates placing nearly two-thirds of the population under the poverty line.
The prevalence of gambling among a financially vulnerable population has driven calls for change, like those from the newly founded Civil Society Coalition Against Online Gambling and the signatories of the Civil Society Declaration on the Harm of Online Gambling.
A ban on online betting in South Africa will probably not land well with the government, however, given how significant a contributor to the economy the industry now is. The aforementioned NGB figures from earlier this year showed that online betting and slot machines were two of the 10 sectors to enjoy the highest growth rates in South Africa from 2018-2023.
As such the sector’s tax contributions, status as an employer and general economic contribution may shield it from some criticism – though as we have seen in markets like the UK lately, this argument isn’t always rock solid, with the British industry’s campaigns against tax hikes appearing to fall on deaf ears.
Different worlds, same goals?
South African campaigners are not alone in calling for regulatory change, however, as major bookmakers also believe the framework needs improving. Leadership of Sportingbet, an Entain owned brand, has pointed to regulatory fragmentation between the NGB, the National Lotteries Commission (NLC) and the nine regional Provincial Licensing Authorities (PLAs) as a key issue.
“In the absence of regulatory coordination, the National Gambling Board and the PLAs have operated in isolation, applying different interpretations of legislation and treating identical products inconsistently,” said Tyrone Dobbin, Sportingbet Co-Founder, in an open letter last week.
This regulatory fragmentation was also referenced by the new campaign leader, Pillay, as quoted by The Mercury: “The national board only issues licences to casinos. The rest, bookmaker, totalizator, limited-payout, and bingo licences are issued by provincial gambling boards.”
As with many other markets, advertising may become a key battleground, however – operators will inevitably push back against any advertising ban, while the NGB has highlighted clamping down on influencers promoting illegal gambling operations as one of its top priorities moving forward.
However, there may be room for compromise and collaboration between campaigners and operators in South Africa, with both clearly seeing benefits in a revamped regulatory framework.
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