TOBY CHANCE | Leading the way for a liberal approach to gambling regulation

Gambling continues to be a crippling habit for many
Wall-to-wall advertising across all platforms, and targeted ads to individual gamblers, have fuelled the rise in gambling and betting spending, writes the author. (123RF)

Is there such a thing as a liberal approach to regulating social habits such as gambling? In recent weeks the response from those with a narrow definition of liberalism has been, ”No”. But this line of argument reveals an excessively dogmatic approach, rather than one responsive to concerns over the social effects of gambling and respectful of the right to freedom of choice.

The logic of regulating gambling is solidly grounded in the liberal economic tradition. The amount of money South Africans spend (and lose) on gambling has rocketed over the past decade. When gambling reaches the levels it has it produces a range of costs to society that are not paid by the gambler themselves, that markets alone cannot deal with. If a social grant is gambled and lost, it represents a household going hungry for a month. Regulation that limits these negative effects is not illiberal; it is responsible and necessary.

The DA first introduced the Remote Gambling Bill as a private member’s bill in 2015 to fill the void caused by the ANC government’s failure to implement the 2008 National Gambling Amendment Act, the first attempt to regulate online gambling.

Online gambling remains in a grey zone. Sports betting is legalised, but online casino games (interactive gambling) remain prohibited by law. De facto,however, this form of gambling has become commonplace. In effect, the state is giving up revenue and the ability to regulate this part of the sector without preventing any of its negative effects.

I thus published an amended version of the DA’s Remote Gambling Bill for comment in October 2024, reviving it for the current parliamentary session. The comments received, with the explosion in online gambling and betting, the outcome of the mediation committee that sat in June 2025 to amend the National Gambling Amendment Act of 2018, and public commentary on the issue, led the DA to review its approach.

The DA’s approach to gambling regulation is outlined in our memorandum presented to the portfolio committee on trade, industry & competition in October: “Brief on the Proposed Way Forward for Gambling Legislation”.

The memorandum lists three problems our new approach aims to address:

  • A lack of responsible gambling provisions in the existing legislation;
  • An increased prevalence of gambling advertisements; and
  • A lack of regulation of online gambling.

As gambling and betting spending have rocketed in South Africa there has been a big rise in gambling addiction, and a concerning tendency for people with very low incomes, often reliant on state grants, to view gambling and betting as a means of supplementing their income rather than as a recreational pursuit.

Legislation needs to be tabled that takes these trends into account, not to limit individual choice but to balance the rights of the legal gambling market against the negative social externalities (addiction and poverty) these products can create.

Wall-to-wall advertising across all platforms and targeted ads to individual gamblers have fuelled the rise in gambling and betting spending. To pretend otherwise is not credible. Public concerns about the mushrooming of illegal gambling, gambling addiction, underage gambling, and unfettered advertising and marketing of gambling and sports betting are at fever pitch. Parliament cannot afford once more to shirk its responsibility to provide leadership.

The DA has played its part and will welcome other parties in the committee coming to the table to drive a sensible, balanced bill forward.

At no point has the DA called for “a uniform ban on gambling advertising”. Unlike illiberal parties such as MK, the EFF and others, the DA believes outright bans on advertising are counterproductive: they distort markets, drive industries underground and beyond the reach of legislators, and deprive the state of revenues from properly regulated businesses.

Reviewing advertising regulations to limit their availability to vulnerable individuals, above all children, at times and places where they are most likely to be present, does not a uniform ban make. Inevitably, this will require a certain amount of ministerial discretion because primary legislation (acts, which are under parliamentary control) take longer to amend than secondary legislation (regulations, which are under ministerial control). The key is to set the balance so that flexibility is maximised while overreach is minimised.

In calling for the portfolio committee to take the lead in formulating the legislation, the DA has adopted the most transparent approach possible. A committee bill approach would allow all parties represented to give their input on gambling regulation in a public forum. This bill could extract the best parts of the 2008 act (which was not implemented) and the DA’s Remote Gambling Bill, as well as the public submissions arising from it.

The committee, assisted by parliament’s legal advisers, would then formulate the bill, allowing interested parties to engage directly with the drafters of the bill during public participation processes, and giving the public a view of how and why choices are being made on gambling regulation.

The DA has played its part and will welcome other parties in the committee coming to the table to drive a sensible, balanced bill forward. Much of the work has already been done, so we would not be starting from scratch, significantly shortening the timeframe for drafting and scrutinising the legislation. It would then be up to the minister and department to draft the regulations required to implement the new act.

In tandem, the National Treasury has issued a call for comment on the possible implementation of a tax on online gambling, on which the DA will make submissions. This possibility only makes it more important that we arrive at a sensible position on online gambling sooner rather than later — or we face the likelihood of a long dispute over whether the Treasury may tax an illegal industry.

Liberals do not eschew legislation or the right of elected governments to regulate citizens’ rights and choices. In South Africa, the bill of rights sets the guardrails and the DA’s liberal values and principles will ensure the new bill balances the rights of the state, gambling operators and individuals in the fairest and most socially and economically responsible way.

• Chance is an MP and DA spokesperson on trade, industry & competition.

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