Growing Gambling Crisis Sparks Calls for Stricter Regulations and Industry Accountability in South Africa
The escalating gambling crisis in the country has captured the attention of political parties and legislators, prompting demands for more robust regulation, enhanced protections for vulnerable groups, and increased accountability within the gambling industry.
Amid a significant surge in online gambling, particularly among low-income communities, parties such as Rise Mzansi and the Democratic Alliance (DA) are advocating for swift legislative measures.
Makashule Gana of Rise Mzansi expressed grave concern about the situation, warning that many South Africans, especially social grant recipients, are losing essential income to gambling. “It is a huge concern to us that many people, especially poor people relying on social grants, are gambling at the rate they are. Many people gamble money they should be using to buy essentials,” Gana stated.
He criticized the Department of Trade, Industry and Competition (dtic) for not taking the crisis seriously enough. “I don’t believe the Minister of Trade and Industry is paying enough attention to the gambling crisis,” he said. Gana described current regulations as insufficient but emphasized that more could be achieved within the existing legal framework. He called for immediate restrictions on advertising and for gambling companies to contribute to rehabilitation services.
Read Also: Olabimpe Akingba on the Evolving Gaming Regulation Landscape in Nigeria
“The gambling companies must pay for the damage they are causing so that gambling addicts can be treated,” Gana asserted. He also highlighted the importance of involving the Departments of Social Development and Health in public education efforts.
DA MP Toby Chance confirmed that the Remote Gambling Bill is progressing. “The bill has been published and 17 written submissions have been received,” he noted. He added that the bill will be presented to the Portfolio Committee on Trade, Industry and Competition in the upcoming parliamentary session starting on April 21.
However, the legislative process may face complications due to the ongoing consideration of the Gambling Amendment Act, which is presently with the Mediation Committee. There is a possibility that the two bills could be merged to streamline oversight.
Chance outlined several key provisions of the bill aimed at regulating the currently unregulated online gambling sector. These include banning minors from gambling, prohibiting operators from extending credit to players, enabling self-exclusion, and restricting marketing practices.
“The bill imposes penalties which we believe will be a disincentive. Both companies and individuals are subject to imprisonment for 10 years on a first offence and 20 years for a repeated offence,” Chance explained. Assets involved in illegal gambling operations will be forfeited, and licensed operators found in breach could face administrative penalties of up to 10% of their annual turnover.
A recent parliamentary response to a question from MK Party MP MM Gasa revealed that, although online gambling remains illegal under the National Gambling Act of 2004, online betting through licensed bookmakers is permitted. The Department of Trade, Industry and Competition confirmed that operators such as Betway, Hollywoodbets, and World Sports Betting operate legally under provincial licences issued by gambling authorities.
The department acknowledged an increase in illegal online gambling activities and stated that the National Gambling Board is collaborating with law enforcement agencies to shut down these platforms. In 2023, the gambling board received 83 reports of suspected illegal online gambling—an increase from previous years. Of these, 14 were confirmed to be operating without a licence and have been referred for criminal investigation.
