South Africa’s Gambling Regulations 2025: Key Updates and Market Challenges

Table of Contents

• A Brief History of Online Gambling Regulation in South Africa
• Regulatory Bodies Overseeing iGaming in South Africa
• Recent Regulatory Updates in 2025
• Gambling Tax Rates in South Africa
• Implications for Players
• Implications for Operators
• The Black Market: Emergence and Risks

A Brief History of Online Gambling Regulation in South Africa

Gambling in South Africa has undergone significant changes over the years. Initially, the Gambling Act of 1965 prohibited all forms of gambling except horse racing. However, the National Gambling Act of 1996 legalized various forms of gambling, including casinos and a national lottery. The 2004 National Gambling Act further refined the regulatory framework, and the 2008 Amendment Act aimed to address interactive gambling, though it remains pending implementation

Regulatory Bodies Overseeing iGaming in South Africa

The primary regulatory authority is the National Gambling Board (NGB), which oversees the gambling industry to ensure compliance with national standards. Each of South Africa’s nine provinces also has its own Provincial Gambling Board (PGB) responsible for issuing licenses and monitoring gambling activities within their jurisdictions.

Recent Regulatory Updates in 2025

In response to international pressures, particularly the Financial Action Task Force’s grey-listing, South Africa has intensified its regulatory efforts. Operators are now required to adhere to GLI-19 standards for technical and operational integrity. Additionally, a specialized enforcement unit has been established to target unlicensed operators, aiming to curb the black market’s influence.

What is GLI-19?

GLI-19, developed by Gaming Laboratories International, is a global standard for testing and certifying interactive gaming systems—such as online sports betting, casinos, and mobile gaming platforms.

What GLI-19 Covers

GLI-19 sets technical requirements across several key areas:

• System Security: Includes encryption, firewalls, and secure account management.
• Fair Gameplay: Verifies RNGs and ensures games meet fairness and payout standards.
• Player Protections: Enforces KYC, self-exclusion tools, and responsible gambling measures.
• Auditing & Reporting: Requires real-time data logging and accessible audit trails.
• Incident Response: Mandates readiness for security breaches or technical failures.

Why It Matters in South Africa (2025)

With South Africa strengthening its gambling laws post-FATF greylisting, GLI-19 is now a compliance requirement for licensed operators. It:

• Ensures player safety and fair play
• Builds regulatory trust
• Discourages reliance on unregulated black market sites

Gambling Tax Rates in South Africa

Gambling taxes in South Africa are applied at both national and provincial levels, varying by gambling type and province.

Implications for Players

Legal Access to Online Gambling

As of 2025, South African law permits online sports betting and horse racing through operators licensed by provincial gambling boards. However, online casino games, including slots, poker, and bingo, remain illegal under the National Gambling Act of 2004. Engaging in or offering these interactive games without authorization is prohibited, and violators may face significant penalties.

Player Verification and Responsible Gambling Measures

Licensed betting sites in South Africa are mandated to implement stringent Know Your Customer (KYC) protocols. Players must provide:

• Valid identification documents
• Proof of residence
• Age verification (minimum age: 18 years)

These measures aim to prevent underage gambling and ensure compliance with anti-money laundering regulations.

Additionally, operators are required to promote responsible gambling by:

• Offering self-exclusion programs
• Providing options to set deposit and betting limits
• Displaying responsible gambling messages prominently on their platforms

While these initiatives are in place, it’s noteworthy that South Africa’s responsible gambling framework is still evolving and may not be as comprehensive as those in some other jurisdictions.

Risks Associated with Unlicensed Online Casinos

Despite the prohibition, many South Africans access offshore online casinos. Engaging with these unlicensed platforms poses several risks:

• Lack of legal protection: Players have limited recourse in disputes.
• Potential for unfair practices: Games may not be audited for fairness.
• Financial risks: Deposits and winnings may be lost without compensation.
• Legal consequences: Participating in unauthorized online gambling is illegal and can lead to penalties.

Advertising and Promotions

Licensed operators are permitted to advertise their services, provided they adhere to strict guidelines:

• No targeting of minors
• Clear messaging about responsible gambling
• Avoidance of misleading claims

Promotional offers, such as welcome bonuses, are allowed but must be transparent and not encourage excessive gambling.

Implications for Operators

Compliance Obligations

Operators must maintain strict compliance with regulatory requirements, including adherence to technical standards like GLI-19 and implementation of robust KYC procedures. Failure to comply can result in severe penalties.

Potential Fines for Breaching Regulations

Non-compliance with gambling regulations can lead to fines of up to ZAR10 million or imprisonment, depending on the severity of the breach.

Advertising Restrictions

All gambling advertising must comply with standards set by the Advertising Standards Authority (ASA). Additionally, some provincial regulators require prior approval of advertisements. Advertisements must include responsible gambling warnings and avoid targeting minors.

The Black Market: Emergence and Risks

Despite regulatory efforts, the black market for online gambling has grown significantly. In the 2023/24 fiscal year, unlicensed operators accounted for 62% of the country’s gross gaming revenue, with approximately 16.3 million South Africans engaging with these illegal platforms.

Risks associated with the black market include:

• Lack of consumer protection
• Potential for fraud and unfair practices
• No contribution to national tax revenue
• Undermining of responsible gambling initiatives

FAQs About South Africa’s Gambling Regulation