The illicit market has been described as ‘surging’ amidst warnings over player engagement during the festive season.
December has been earmarked as a period of heightened gambling engagement by the National Gambling Board (NGB) in South Africa, with players at elevated risk of the black market and underhand tactics utilised by the unlicensed industry.
The Acting Chief Executive Officer of the NGB, Lungile Dukwana, detailed: “The festive season often brings increased financial pressure and emotional stress, which can escalate risky gambling behaviour.
“Problem gambling can affect anyone, regardless of age, background, or income level. Early intervention is key to avoiding financial loss, relationship breakdown, or mental-health harm.”
South Africa has sought to make strides this year when it comes to tackling the unlicensed market – boosted by the formation of a new monitoring body.
Earlier in the year, Parks Tau, Minister of Trade, Industry, and Competition, pushed his department to commence the process of the appointment of a National Gambling Policy Council and create a new strategy in terms of tackling illegal gambling.
It came off the back of an increasing volume of gambling marketing content appearing online on a myriad of platforms, including YouTube.
The rejuvenated strategy placed a strengthened focus on eradicating illegal online gambling ads and providing increasing clarity in gambling framework after a seven-year operational hiatus that last saw the Council convening in 2018.
Updating Parliament earlier in the year, Tau stated: “The National Gambling Act prohibits the placing of advertisements in media primarily directed at persons under the age of 18.
“There is an issue of sponsorship of family-friendly programmes, where major bookkeepers sponsor them. This results in the increase of visibility and frequency of gambling content during shows mostly viewed by minors.”
Tau added: “There is an intention to ensure that we can regulate online gambling. It is an environment where different provinces have different approaches, with some being more relaxed. We also want to ensure that there is rehabilitation of addicts.”
The move was prompted by increasing gambling engagement in the country, with the lack of regulation leading to growth of engagement from South African players with operators based outside the country.
An NGB report stated that R1.1trn (£41bn) was wagered during FY24, presenting a significant economic opportunity for the country.
Tau added on the state of play for illegal gambling in South Africa: “This surge in illegal online gambling activities and the widespread advertising of gambling, often targeting vulnerable populations, has presented new challenges for regulators.
“The convergence of technology, consumer behaviour, and regulatory frameworks has necessitated a robust response to these challenges.”
There has also been growing support in the country for an outright ban of online gambling, with 107 organisations joining a coalition to grow the campaign to prohibit online gambling in one of the continent’s biggest markets.
They also laid out plans for further action, which include marches and public education campaigns.
The group launched a memorandum titled “Protecting Our People: Ending the Silent Epidemic of Online Gambling”, which highlights specific next steps it is aiming for, including a total ban on online gambling and advertising, a freeze on new gambling licences and key changes to the National Gambling Act to challenge digital gambling and criminalise unlicensed operators.
According to a report by South African news site, the IOL, Dhilosen Pillay, former chairperson of the Free State Gambling, Liquor and Tourism Board, has laid the blame firmly at the feet of soft regulation.
Pillay stated: “For the term online gambling, you do not have a licence for online gambling. There’s a bookmaker’s licence, which is a fixed-odds licence. Now, the National Gambling Board, formed in 2004, was disbanded in 2014. So we have the administrator, and it’s impossible for the administrator to take into consideration all factors pertaining to gambling.
“The national board only issues licences to casinos. The rest, bookmaker, totalizator, limited-payout, and bingo licences are issued by provincial gambling boards.
“Now the provincial gambling boards are born out of an act of the legislature and not of the national government. So the provincial legislatures then pass an act that creates a provincial gambling board. And these are the gambling boards that approve these particular licences. So, when gambling online, what are you actually betting on? You are actually gambling with a fixed odds licence, which is what we call bookmaker licences.”
