Africa’s largest regulated betting market moves to block illegal betting sites as $91 billion industry comes under scrutiny

Africa’s biggest regulated gambling market is stepping up efforts to shut down illegal online betting platforms as authorities seek to recover lost tax revenue, protect consumers and tighten oversight of an industry that handled more than $91 billion (R1.5 trillion) in wagers over the past year.

• Africa’s biggest regulated gambling market is moving to block illegal betting websites as authorities tighten enforcement.
• Illegal operators are estimated to control 62% of the country’s online betting market, serving about 16 million users.
• The crackdown comes after gamblers wagered $91 billion (R1.5 trillion) over the past year, with billions flowing through offshore platforms.
• Officials say the measures will strengthen consumer protection, improve tax collection and support licensed betting operators.

South Africa’s National Gambling Board (NGB) has issued a request for service providers to help identify and block illegal gambling websites, signalling one of the country’s strongest enforcement actions yet against offshore betting operators.

The move comes as online gambling continues to reshape Africa’s gaming industry, with smartphones, digital payments and internet access driving rapid growth while making it easier for unlicensed foreign operators to reach millions of users.

Industry research commissioned by the South African Bookmakers Association estimates that illegal operators account for 62% of South Africa’s online betting market, attracting about 16 million users and generating more than $3 billion (R50 billion) in gross gambling revenue every year.

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According to the gambling regulator, illegal operators undermine the regulated industry, deprive the government of tax revenue and expose consumers to platforms that operate outside South African law.

The regulator said illegal gambling has expanded rapidly in both physical and online formats, fuelled by technological advances, policy gaps and organised criminal activity.

It warned that many offshore operators exploit digital wallets, cryptocurrency transactions and cross-border regulatory loopholes to avoid enforcement while continuing to target South African consumers.

“South Africa is struggling to enforce against illegal interactive gambling, offering gambling activities to South Africans without a licence,” the regulator said in its expression of interest document.

To curb the practice, authorities plan to work with service providers to block access to illegal gambling websites and share intelligence with law enforcement agencies to prosecute operators that violate the National Gambling Act.

Licensed betting companies are required to comply with strict regulations, including age verification, anti-money laundering measures and responsible gambling standards, requirements that many illegal operators avoid.

Gambling boom fuels policy rethink

The enforcement drive comes as South Africa experiences one of the fastest expansions in online gambling on the continent.

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Official industry figures show gamblers wagered $91 billion (R1.5 trillion) during the 12 months to March 2025 across all forms of gambling, including recycled winnings.

The rapid growth has prompted broader government efforts to overhaul gambling regulation.

National Treasury has proposed a 20% tax on the online gambling industry as part of plans to curb harmful gambling while increasing public revenue.

Treasury has argued that online gambling has grown significantly due to advances in technology, wider internet access and changing consumer behaviour following the COVID-19 pandemic.

Authorities are also considering restrictions on gambling advertising similar to measures previously introduced for tobacco products.

Industry warns higher taxes could backfire

While supporting action against illegal operators, licensed bookmakers have cautioned that excessive taxation could unintentionally strengthen the black market.

Industry groups argue that pushing up costs for legal operators may encourage gamblers to migrate to offshore platforms that pay no local taxes, offer little consumer protection and fall outside domestic regulation.

Instead, they have urged government to prioritise shutting down illegal operators before imposing additional taxes on licensed businesses.

The gambling industry has also begun discussions on measures to prevent recipients of government social grants and student financial aid from using public funds for online betting.

A growing challenge across Africa

South Africa’s crackdown reflects a broader trend across Africa, where governments are grappling with the rapid growth of digital gambling.

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Across the continent, regulators are tightening oversight, reviewing tax policies and introducing tougher enforcement as online betting attracts younger users and expands through mobile technology.

For South Africa, the challenge is particularly significant because illegal operators now account for the majority of online betting activity.

Whether the latest measures succeed will depend on effective enforcement. Offshore gambling websites can quickly change domain names, adopt alternative payment methods and exploit jurisdictional differences, meaning authorities will likely need close cooperation between internet service providers, banks, payment companies and law enforcement agencies to disrupt illegal operations.