Concerns have been raised about the rise of online gambling in the country with calls for urgent legal reform. Picture: RON AI
Image: RON AI
The gambling crisis in the country has drawn the attention of political parties and legislators, who are calling for stronger regulation, improved protections for vulnerable groups, and accountability from the gambling industry.
With the sharp rise in online gambling, particularly among low-income communities, parties such as Rise Mzansi and the DA are urging swift legislative action.
Makashule Gana of Rise Mzansi described the situation as dire, warning that many South Africans, especially social grant recipients, are gambling away essential income. “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,” said Gana.
He accused the Department of Trade, Industry and Competition (dtic) of failing to take the crisis seriously.
“I don’t believe the Minister of Trade and Industry is paying enough attention to the gambling crisis.”Gana described current regulations as inadequate but insisted that more could still be done within the existing legal framework. He called for immediate limits on advertising and for gambling companies to fund rehabilitation services.
“The gambling companies must pay for the damage they are causing so that gambling addicts can be treated,” Gana said, also stressing the need for involvement from the departments of Social Development and Health in public education efforts.
DA MP Toby Chance confirmed that the Remote Gambling Bill is moving forward. “The bill has been published and 17 written submissions have been received,” he said, noting it will be introduced to the Portfolio Committee on Trade, Industry and Competition in the next parliamentary term, beginning on April 21.
However, the process may be complicated by the Gambling Amendment Act, currently with the Mediation Committee, which may recommend merging the two bills to streamline oversight.
Chance outlined several provisions in the bill aimed at regulating the currently unchecked online gambling environment, including banning minors from gambling, prohibiting operators from extending credit to users, enabling individuals to self-exclude, 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,” said Chance.
Assets used in illegal gambling operations will be forfeited, and licensed operators in breach could face administrative penalties of up to 10% of their annual turnover.
A recent parliamentary reply to a question from MK Party MP MM Gasa revealed that while online gambling is 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 like Betway, Hollywoodbets, and World Sports Betting operate legally under provincial licences issued by gambling boards.
The department acknowledged a rise in illegal online gambling and stated that the National Gambling Board is working with law enforcement to shut down these platforms.
In 2023, the gambling board received 83 reports of suspected illegal online gambling, a notable rise from previous years. Of these, 14 were confirmed to be operating without a licence and were referred for criminal investigation.
