South Africa’s Battle Against Illegal Offshore Gambling Platforms
The National Gambling Board (NGB) is intensifying its efforts to curb the flow of billions of rand to unlicensed offshore gambling sites that target South African players. Acting CEO Lungile Dukwana briefed Parliament’s Portfolio Committee on Trade, Industry and Competition on Wednesday, outlining the scale of the challenge and the steps being taken to address it.
Scale of the Problem
According to the NGB’s briefing, illegal offshore gambling platforms generated an estimated R5 trillion in revenue from South African users, while legally regulated online gambling contributed R75 billion in 2025. These figures highlight a stark disparity between the regulated market and the vast, untaxed ecosystem operating from jurisdictions such as Gibraltar, Malta, the Philippines and the United Kingdom.
A study conducted by the AI‑powered research group Yazi surveyed 1,028 respondents and found that:
- 57 % sacrificed essential household expenses to fund gambling activities.
- 29 % borrowed money to continue gambling.
These findings underscore the financial strain placed on many South Africans who engage with unlicensed sites.
Regulatory and Enforcement Efforts
Dukwana explained that the Gambling Authority is pursuing a multi‑pronged strategy:
- Seeking updates to existing gambling regulations and tax frameworks to better capture online activity.
- Issuing cease‑and‑desist notices to operators based abroad.
- Collaborating with the Communications Department, the South African Police Service (SAPS) and the Independent Communications Authority of South Africa (Icasa) to explore IP‑address blocking for platforms deemed illegal.
- Engaging with foreign regulators in the United Kingdom, Malta, the Philippines and Gibraltar to request the suspension of licenses that enable services targeting South African consumers.
He noted that early responses from the UK and Malta have been constructive, while discussions with Philippine and Gibraltarian authorities are ongoing.
Impact on Consumers and Society
The lure of easy access and attractive bonuses often masks the risks associated with offshore platforms. Because these sites are not subject to South African consumer‑protection rules, players have limited recourse in disputes, and winnings may be difficult to withdraw. Moreover, the lack of tax remittance deprives the national fiscus of revenue that could fund public services and problem‑gambling support programmes.
Dukwana emphasized that the authority is also working with the National Gambling Policy Council (NGPC) on a comprehensive report that examines:
- The challenges posed by betting exchanges.
- Methods for tracing historical losses incurred by players.
- Policy recommendations to strengthen oversight of online gambling.
The report is slated for presentation to the NGPC in the coming months.
Looking Ahead
While technological advances have accelerated the growth of online gambling, Dukwana acknowledged that regulatory frameworks often lag behind innovation. He called for increased investment in monitoring tools, greater cooperation with international law‑enforcement agencies, and public‑awareness campaigns to educate consumers about the dangers of unlicensed gambling.
By aligning domestic policy with cross‑border enforcement, South Africa aims to curb the outflow of capital, protect vulnerable players, and restore integrity to its gambling sector.
