Inside the Western Cape Gambling and Racing Board’s Strategic Plan

Gambling regulation in the Western Cape operates at the intersection of public finance, social protection, and a rapidly evolving digital economy. The Strategic Plan of the Western Cape Gambling and Racing Board (WCGRB) for the period 2025/26 to 2029/30 sets out how the provincial regulator intends to manage this balance over the next five years. The Board serves as the accounting authority of the WCGRB and performs its functions and duties in accordance with the Western Cape Gambling and Racing Act, 1996 (Act 4 of 1996).

The Strategic Plan was developed by the members of the Board and the management of the WCGRB, under the guidance of the Adv. Deidré Baartman, Minister of Finance for the Western Cape. It is rooted in the principles and development objectives of South Africa’s National Development Plan and informed by the Provincial Strategic Plan (PSP) 2025–2030. It sets out predetermined objectives and performance targets for the year under review, and projects intended performance targets and programme indicators for the two outer years of the Board’s Medium-Term Expenditure Framework (MTEF).

It also unpacks the activities required to achieve the Board’s goals and reaffirms its commitment to the effective regulation of the gambling industry throughout the planning period. At the centre of the Plan are the Board’s statutory objectives:

• provide a stable, just, consistent and effective regulatory environment
• inspire public confidence and trust, in an environment free from corruption and unlawful gambling and racing activities and
• contribute to the economy of the Western Cape in an innovative and socially responsible manner.

The Strategic Plan is framed against the backdrop of a large and economically significant gambling sector. The Western Cape according to recent statistics shared by the National Gambling Board of currently represents approximately 31.7% of South Africa’s total gross gambling revenue, making it the largest regulated gambling market in the country.

Over the past five years, WCGRB collected taxes and levies of approximately R4.366 billion on behalf of the Western Cape Government. In the 2023/24 financial year, the province generated an estimated R18.8 billion in gross gambling revenue, with the Western Cape collecting approximately R1.5 billion in gambling taxes and levies for the provincial fiscus. In the subsequent 2024/25 financial year, gambling tax collections continued to grow, with the WCGRB collecting and verifying approximately R1.75 billion in gambling taxes, although at a more moderate rate of increase than in the preceding year.

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While the gambling industry continues to generate substantial economic returns, the Strategic Plan adopts a cautious approach to expansion. The Board repeatedly emphasises the need to prevent the over-stimulation of gambling, recognising the potential social risks associated with increased availability. “The Board seeks to license gambling opportunities with a view of protection of society from over-stimulation of gambling and protection of players and the integrity and fairness of the industry through strict control and supervision of the industry,” said the Board in the plan.

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Legislation allows for the rollout of additional gambling modes, including various categories of Limited Pay-Out Machines (LPMs), as provided for in Section 27 of the 1996 Act. The Province currently permits a maximum of 3,000 LPMs to be rolled out across the Western Cape, subject to licensing and regulatory controls. Historically, implementation has largely been limited to Type A LPM sites, which allow for up to five LPMs per site. The Board is now facilitating the rollout of Type B LPM sites, which permit the operation of between six and 20 LPMs per site.

In addition, the legislative framework provides for Type C LPM sites, which allow for the operation of between 21 and 40 LPMs per site, as well as Type D LPM sites, operated by independent site operators and permitting up to 40 LPMs per site. These categories are subject to more stringent regulatory, investment, and operational requirements. Any further expansion of LPM rollout will be guided by public participation processes, legislative compliance, and research-based assessments of social and economic impact, with specific regard to the risk of over-stimulation of gambling.

Responsible gambling is positioned as a core regulatory priority. The Board acknowledges the risks associated with gambling and affirms that “protecting vulnerable individuals and mitigating the risks of problem gambling is a fundamental priority.”

Over the five-year period, the Board has committed to implementing 20 gambling-related social responsibility programmes or initiatives and conducting at least one comprehensive research study focused on gambling prevalence, responsible gambling practices, and illegal gambling activity. To support this work, the Strategic Plan provides for the establishment of a dedicated Responsible Gambling Unit to strengthen oversight and public awareness.

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The Strategic Plan recognises that the gambling landscape is being fundamentally reshaped by technological change, particularly the rapid growth of online and mobile betting platforms, most notably within sports wagering. The shift toward remote betting has altered both consumer behaviour and revenue patterns, contributing to increased tax collections from licensed operators as betting activity moves away from exclusively land-based venues.

At the same time, the Board also acknowledges that technological expansion has intensified regulatory complexity and enforcement challenges, particularly in relation to illegal online gambling. Unlicensed operators operating beyond traditional jurisdictional boundaries continue to pose risks to consumer protection, tax compliance, and the integrity of the regulated market.

In response, the Board has committed to a programme of continued digital transformation, underpinned by the view that “innovation is a key driver of the Board’s regulatory approach.” This approach is intended to strengthen regulatory capability rather than merely modernise systems. Key initiatives include the automation of business processes to improve efficiency and consistency in licensing and compliance functions; the expanded use of data analytics to enhance monitoring, risk identification, and evidence-based decision-making; and the strengthening of cybersecurity and digital monitoring systems to protect regulatory infrastructure and support more effective oversight.