Illegal offshore gambling is continuing to dominate South Africa’s online betting space, with more than R50 billion flowing out of the country each year and millions of users exposed to financial and legal risks.
According to the South African Bookmakers Association (SABA), the illicit market has become deeply entrenched, operating largely beyond the reach of local regulators.
A report commissioned by SABA and conducted by global research firm YieldSec found that illegal operators account for approximately 62% of all online gambling activity in the country.
The study also estimates that around 16 million South Africans engaged with these platforms over the past year.
Under the National Gambling Act, it is illegal to offer or participate in gambling services that are not licensed within South Africa.
Despite this, offshore operators continue targeting local users, often presenting licences from jurisdictions such as Curaçao, Malta, Gibraltar, and the Philippines, none of which are legally recognised in South Africa.
SABA CEO Sean Coleman warned that the scale of illegal gambling activity poses serious risks. He noted that most online betting in South Africa is taking place outside the regulated system, leaving consumers vulnerable to fraud, unpaid winnings, and exploitation.
The association also highlighted the role of financial institutions in facilitating these transactions, stating that banks and payment providers inadvertently act as conduits between local users and foreign gambling operators.
For consumers, the risks go beyond financial loss. Winnings from illegal platforms are not protected by law and may be confiscated, while users could also face legal consequences for participating in unlawful gambling activities.
SABA is now working with banks, regulators, and law enforcement agencies to curb the growth of illegal gambling and improve enforcement of existing laws.
The organisation has urged South Africans to verify whether betting platforms are locally licensed before engaging with them.
Licensed operators are required to display valid registration details and are subject to strict regulations, including age verification, anti-money laundering controls, and responsible gambling measures.
By contrast, unlicensed offshore platforms operate without oversight, offering little to no protection for users.
SABA says efforts to combat illegal gambling will continue, with a focus on protecting consumers and ensuring that the industry operates within South African law.
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