The South African gambling sector is bracing for a wave of political upheaval following recent criticism.
It comes after an MP launched a scathing attack on the industry, warning that regulatory change is needed to protect players from the harms of online gaming.
While only fixed-odds sports betting is legal under South African law, Makashule Gana MP, a member of the Rise Mzansi Party, warned that many outlets are offering ‘casino-like’ games to players.
Speaking to TechCentral, he stated: “If these companies do not pay for the damage they are causing, we will be left with a huge burden where a portion of the money that is supposed to go towards development will have to be used to rehabilitate online gambling addicts.”
Gana has long been outspoken on the rise of online gambling in South Africa, which has been enabled by increased mobile penetration across the country.
Last year, he declared in parliament that the rise of iGaming is a “new crisis” impacting young people, likening the addiction levels to that of nyaope, a cheap form of heroin commonly found in South Africa’s townships.
“It is a social ill and we need to deal with this problem,” he implored in November. “These online gambling companies are targeting young people and grant recipients.”
Stalled legislation
In recognition of the rise of online gaming within South Africa, the Democratic Alliance tabled the Remote Gambling Bill of 2024, which seeks to modernise South Africa’s regulatory framework – which dates back to 2008.
However, efforts to enact change have stalled as the bill is yet to have been discussed by the Trade, Industry & Competition (DTIC) Portfolio Committee.
The Bill aims to regulate online gambling by issuing licenses through provincial authorities instead of the centralised National Gambling Board (NGB). The Bill will establish procedures for license objections, protect minors and vulnerable individuals, and ensure compliance with South Africa’s FICA laws.
At the time, the DA warned that current guidelines have led to an increase in “criminal activity, the erosion of the rule of law, and significant financial losses in potential revenue and jobs, as the industry remains unprotected compared to land-based gambling”.
The bill will also regulate advertising, an area that Gana said operators have “gone overboard” in recent times.
He said: “[Operators] should not advertise at eight in the morning or make all these wild promises about how people are going to get rich quick. They should also spend money talking about responsible gambling, telling people about the dangers of addiction and advising them not to gamble using their credit cards or overdrafts.”
Although Gana noted the recent drastic decision taken by India’s politicians to ban real money gaming, the DA’s National Spokesman on DTIC, Toby Chance, said that the party is in favour of strengthening regulation to protect players, rather than an outright ban.
iGaming Expert Insight: Whilst Gana has been a vocal and consistent voice against the gambling industry, his latest comments will undoubtedly cause anxiety amongst a sector that very much is in need of regulatory overhaul. It further underpins the vital crossroads that such an import region sits at.
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