Eastern Cape regulator maps South Africa gambling future
South Africa’s gambling industry is moving deeper into digital territory, putting fresh pressure on regulators to modernise oversight as online betting demand rises sharply. For Mabutho Zwane, chief executive of the Eastern Cape Gambling Board and president of the Gaming Regulators Africa Forum, the central question is no longer whether the market can grow. It is whether regulation can keep up with that growth without pushing consumers towards illegal operators or weakening protections for vulnerable players.
“Effective regulation should not be viewed as a barrier to investment or innovation,” Zwane told SiGMA News. “In fact, strong regulation is what creates the certainty and trust that sustainable growth depends on.”
National Gambling Board figures for the 2024/25 financial year show South Africa’s regulated gambling market generated ZAR74.5bn ($4.59bn) in gross gambling revenue, with total turnover reaching ZAR1.5tn ($92.5bn). Betting was the largest segment, accounting for 69.8 per cent of GGR, ahead of casinos at 22.3 per cent. Within that shift, online betting alone generated 59.7 per cent of total GGR across all gambling verticals.
The shift is backed by favourable digital demographics. Blask, a gambling market intelligence platform, puts South Africa’s population at 60.4 million, with 42.5 million internet users and more than two-thirds of the country living in urban areas. The median age is just over 30, giving operators a large, connected consumer base for mobile-led betting products.
Digital growth tests the regulator
For regulators, the task at hand is to keep licensed operators inside the market while closing off space for illegal sites, financial crime and gambling harm.
“The biggest challenge facing regulators today is the speed at which the industry is evolving, particularly in digital and mobile environments,” Zwane explained. “Technology is reshaping gaming faster than traditional regulatory systems were designed to respond.”
For an industry that has long been regulated through land-based licences, provincial structures and physical outlets, the rise of online gambling has changed the pace of oversight.
A market moving faster than the rulebook
Regulation in South Africa is shared between the National Gambling Board and nine provincial licensing authorities, including the Eastern Cape Gambling Board. Casinos, retail betting, licensed online sports betting and limited payout machines are allowed under provincial licences. Online casino-style gambling is not: that unresolved gap has kept interactive gambling at the centre of the debate over how far South Africa should open its digital market.
Recent discussions have focused on whether South Africa should create a legal framework for interactive, online gambling, including how such activity would be taxed and advertised if it were brought into the regulated market. The draft Remote Gambling Bill is part of that debate, proposing a clearer basis for licensing and oversight while giving provincial licensing authorities and the National Gambling Board defined roles.
Zwane’s comments reflect the same pressure on regulators. He argues that regulators can no longer rely on systems designed for a slower, more localised market.
“The regulator of the future cannot operate with outdated tools in a digital industry,” he said. “Modern regulation requires data analytics, real-time monitoring, and agile regulatory systems capable of responding proactively to emerging risks.”
In the Eastern Cape, he said, the response includes digitising licensing and compliance processes, strengthening real-time monitoring capabilities, improving enforcement collaboration and making sure responsible gambling protections remain effective online.
“Digital licensing systems, real-time compliance monitoring, and data-driven regulatory tools are no longer optional; they are essential for effective oversight in a modern gaming environment,” he said.
Growth, but not at any price
Players staked ZAR 1.5tn ($92.5bn) in South Africa’s regulated gambling market in 2024/25. Zwane, however, said the value of the sector should also be judged locally: through jobs in casinos, betting outlets and LPM sites, but also through security, technology, compliance and facilities work. In the Eastern Cape, licence conditions require operators to use local suppliers and support community projects.
“As regulators, our responsibility is not only to oversee compliance but to help shape a gaming sector that contributes positively to economic development while remaining socially responsible and sustainable,” he told SiGMA News.
His argument is aimed as much at operators as policymakers. In fast-growing markets, the industry often warns against rules that slow investment. Zwane’s view is that well-designed regulation should do the opposite.
“Over-regulation can discourage investment, increase compliance costs unnecessarily, and drive consumers toward unregulated or illegal markets,” he added. “Under-regulation, on the other hand, exposes vulnerable consumers, weakens market integrity, and creates opportunities for criminality and illicit operators.”
Responsible gambling follows the player online
The move to mobile also changes how regulators think about player protection. Zwane pointed to public awareness campaigns, self-exclusion programmes, mandatory operator measures and counselling support as central parts of South Africa’s responsible gambling framework.
The test now is whether those tools remain effective when gambling is always available through a phone.
“Responsible gambling must remain fundamental to all regulatory approaches,” he said. “Innovation and industry growth are only sustainable when they are matched by accountability, consumer protection, and strong governance.”
He said regulators assess responsible gambling initiatives through self-exclusion participation, complaints and disputes, campaign engagement, feedback from counselling organisations and research into interventions.
The same logic applies to cooperation between regulators. Online platforms do not stop at provincial borders, and Zwane said alignment between regulators is increasingly important as operators expand across jurisdictions.
“Harmonisation does not mean identical regulation,” he said. “It means interoperable frameworks that allow regulators to collaborate effectively while preserving their respective mandates and local context.”
For Zwane, the change is not simply about stricter rules. It is about a different kind of regulator: one with the technology, data and coordination to shape the market as it grows.
“The regulator of tomorrow is not simply a rule-maker: it is a market-maker,” he concluded.
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