Illegal online gambling is now draining South Africa’s economy of more than R50 billion a year Illegal online gamblingis now drainingSouth Africa’s economyof more than R50 billion a year, with unlicensed offshore operators now accounting for nearly two-thirds of all online gambling activity in the country. This is according to theSouth African Bookmakers’ Association (SABA),which warned that illegal online gambling has reached crisis levels, threatening consumers, legitimate operators and the economy. “While much of the recent public and media debate has focused on the growth of legal online betting, the existential crisis lies in the scale and impact of illegal offshore operators that continue to target South African consumers unchecked,” CEO Sean Coleman said.
“These illegal operators pay no local taxes, contribute nothing to responsible gambling programmes, have no enforceable self-exclusion mechanisms, and pose serious risks to vulnerable players. Every rand spent on these offshore sites is money that leaves the South African economy, undermining jobs, tax revenues and community investment supported by the legal betting industry.” According to the Yield Sec South Africa 2023/24 Report, commissioned by SABA, around 62% of all online gambling activity in South Africa now takes place on illegal platforms, compared to just 38% handled by licensed, regulated local operators. The report also found that “2084 unlicensed gambling websites actively target South Africans, with around 16 million people, or 27% of the population, estimated to have engaged with illegal platforms in the past year”.
