Illegal offshore gambling is threatening millions of South African consumers according to the South African Bookmakers Association (SABA).
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The South African Bookmakers Association (SABA) has raised concern over the scale of illegal offshore gambling in South Africa, warning that millions of consumers are being exposed to fraud, financial loss, and potential legal consequences.
The warning follows a data-driven report commissioned by SABA in November 2024 from YieldSec, which found that illegal operators account for about 62% of all online gambling activity in the country. The report estimates that more than R50 billion in gross gambling revenue is diverted offshore each year.
According to the findings, approximately 16 million South Africans engaged with illegal online gambling platforms over the past year.
SABA CEO Sean Coleman said the figures point to a significant gap in enforcement.
“While the positive impact of re-channelisation away from the illegal market is acknowledged and supported by SABA, not enough is being done to address this area of the illicit economy,” Coleman said.
In terms of the National Gambling Act, it is unlawful to offer or participate in gambling services in South Africa without a valid local licence. Despite this, offshore operators continue to target local users, often presenting licences from jurisdictions such as Curaçao, Malta, Gibraltar, and the Philippines, which have no legal standing in South Africa.
“These numbers are deeply concerning,” Coleman said. “The majority of online gambling activity in South Africa continues to occur outside the regulated system.”
He added that illegal transactions are facilitated through formal financial channels.
“Each time a player located in South Africa places a bet on a foreign-based online gambling site, an unlawful gambling activity occurs, with such illegal gambling activity being facilitated by, amongst others, the bank of the player in South Africa,” he said.
SABA said consumers using illegal platforms face significant risks, including the possibility that winnings may not be paid out or could be forfeited to the state. Participants may also face prosecution.
“Many consumers are unaware that using these sites is not only risky but unlawful,” Coleman said. “There is no guarantee that winnings will be paid out, and players have no recourse if they are defrauded or exploited.”
The association said it is working with regulators, law enforcement, and the banking sector to strengthen enforcement and curb the growth of illegal gambling.
SABA urged consumers to verify that operators are licensed locally and display valid South African regulatory details, including their registered entity name and relevant provincial gambling authority.
“Choosing a licensed operator is about protecting yourself,” Coleman said. “If the operator is not licensed in South Africa, they are operating illegally, and by betting with such an operator, the South African consumer is committing an offence.”
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