Illegal offshore gambling operators account for the majority of South Africa’s online betting activity, diverting billions of rand out of the country and exposing millions of users to financial and legal risks.
The rapid growth of online betting, coupled with uneven enforcement and the ease of accessing international platforms, has enabled unlicensed operators to gain a significant foothold in the local market.
According to the South African Bookmakers Association (Saba), illegal platforms make up about 62% of the country’s online gambling market, with more than R50bn in gross gambling revenue flowing offshore each year. An estimated 16-million South Africans have used these platforms in the past year.
Saba commissioned the data-driven report through global research firm Yield Sec in November 2024.
Illegal gambling occurs when South African users place bets on foreign-based platforms that are not licensed locally. While many of these operators display licences from jurisdictions such as Curaçao, Malta, Gibraltar and the Philippines, these do not authorise them to operate in South Africa and offer no local consumer protection.
In terms of the National Gambling Act (2004), it is unlawful to offer or participate in gambling services without a valid South African licence.
Despite this, offshore operators continue to target South African users, often using payment systems that rely on local banks and financial intermediaries to process transactions, effectively bypassing regulatory controls.
Saba warns that users of illegal platforms have no legal protection. Winnings are not guaranteed and may be forfeited to the state, while participants may also face prosecution under South African law.
Unlawful, high risk
The association notes that many users remain unaware that engaging with these platforms is both unlawful and high risk, particularly given the absence of regulatory safeguards such as age verification, anti-money laundering controls and responsible gambling measures.
Saba is working with regulators, law enforcement and the banking sector to curb illegal gambling activity and enforce existing legislation.
Consumers are urged to verify that operators are licensed in South Africa by checking for locally issued licence details and registration with a provincial gambling board.
“Choosing a licensed operator is about protecting yourself,” Saba said, warning that participation in illegal gambling constitutes an offence under the National Gambling Act.
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