South Africa Struggles with Online Gambling: National Rules and a Patchwork

South Africa is grappling with a fragmented gambling regulatory landscape. While the country has a national framework, the practical licensing and supervision fall under the purview of individual provinces. This leads to a complex system where a license in one province does not automatically apply to another. Online gambling, in particular, presents significant challenges for authorities, as it currently lacks unified regulation.

Recent developments, however, indicate a clear desire for change. A new verification portal launched by the National Gambling Board (NGB) aims to provide clarity for players and businesses. Concurrently, the opposition is pushing its own bill to finally advance the long-overdue legalization and regulation of online gambling.

Numbers and facts

The South African gambling system is deeply rooted in national and provincial structures. The National Gambling Act provides the nationwide guidelines. However, the nine provinces are responsible for issuing licenses and oversight. There are specific licenses for casinos, bookmakers, totalisators, bingo, and limited payout machines (LPMs). Manufacturers, distributors, and technology providers also require separate permits depending on the province and service.

The National Gambling Board (NGB) launched a new, publicly accessible verification portal on Wednesday. This portal lists all legally licensed land-based and online gambling operators in South Africa. The NGB plans to continuously update the portal, making it available to the public, law enforcement agencies, tax authorities, and financial institutions. Acting CEO Lungile Dukwana emphasized the necessity of this measure to protect citizens. "This platform is a critical step in safeguarding South Africans from the dangers posed by illegal gambling," Dukwana stated.

South Africa is Africa's largest regulated gambling market. In the 2024-2025 financial year, an astonishing 1.5 trillion South African Rand (approximately 89 billion US dollars) was wagered in the country, representing a 31.3 percent increase over the previous year. Nevertheless, according to the South African Bookmakers Association (SABA), 62 percent of online gambling originates from unlicensed operators. The government is also considering a 20 percent tax on Gross Gaming Revenue (GGR). Critics from the Free Market Foundation (FMF) fear that this could merely drive players to offshore providers who pay no taxes. A recent Gauteng High Court ruling confirmed that online casinos remain illegal under current national law.

Background

Since 2008, a draft bill to regulate online gambling in South Africa has been pending but was never signed by the president. As a result, the opposition Democratic Alliance (DA) has introduced a new bill, the Remote Gambling Bill (B11-2024). This draft proposes three types of licenses: a remote gambling operator license, a manufacturer, supplier, or maintenance provider license, and an employment license. Applications are to be submitted to the provincial authorities, with the NGB having the final say on licensing. The DA criticizes the inactivity of the ruling African National Congress (ANC) party.

"By not regulating this gambling activity, the erosion of the rule of law and criminal activity is being encouraged, while the public is not effectively protected as they are when using land-based gaming operations." – Democratic Alliance

The party stresses that the lack of regulation leads to billions of Rand in revenue and jobs being lost to other gambling jurisdictions. With the upcoming elections on May 29, where the ANC could lose its absolute majority, the chances for the new Remote Gambling Bill to pass are increasing. The new law also includes protective measures such as a minimum age of 18, credit prohibitions, self-exclusion, and deposit limits. Advertising will be subject to strict rules and must include responsible gambling messages.

Why it matters for German players

While South Africa is still wrestling with central regulation of its online gambling market, the situation in Germany is clearly defined. The State Treaty on Gambling 2021 (GlüStV 2021) has created a legal framework that comprehensively protects players and opens the market to reputable providers. German players benefit from strict regulations that do not yet exist in this form in South Africa. These include a deposit limit of 1,000 euros per month, monitored by the central LUGAS system, and a bet limit of one euro per spin for online slots. These measures are intended to prevent problem gambling and ensure a safe playing environment. Furthermore, all online casinos licensed in Germany are listed on the whitelist of the Joint Gaming Authority of the Federal States (GGL). This provides players with clear guidance and protects them from unlicensed providers, which are currently widespread in South Africa.

What it means for GGL-licensed casinos

For online casinos holding a German GGL license, such international developments mean they must maintain their high standards. While countries like South Africa are still debating the basic regulation of online casinos and unlicensed operators hold a large market share, GGL casinos have already proven that they can succeed in a strictly regulated environment. German regulations, such as the 1-euro bet limit and the monthly deposit limit, are very restrictive compared to international standards. Nevertheless, they offer a high level of player protection and legal certainty. GGL casinos can rely on their compliance with GlüStV 2021 and benefit from the transparency ensured by the LUGAS system, for example. The South African example shows how important clear and central regulation is to consolidate the market and protect players.