South Africa’s KwaZulu-Natal pushes for iGaming framework
KwaZulu-Natal’s gambling regulator is backing the regulation of online gambling as betting activity shifts online, arguing that South Africa needs a national framework to address growing concerns around addiction, enforcement and consumer protection. The KwaZulu-Natal Economic Regulatory Authority (KZNERA) says customer behaviour is rapidly moving away from traditional retail gambling towards digital platforms, forcing regulators to rethink their approach.
Speaking exclusively with SiGMA News about the province’s strategy, KZNERA CEO Portia Baloyi said the authority is actively influencing national policy discussions around interactive gambling, which remains unregulated in South Africa.
“The strategy of the regulator is to embrace the move towards the digital economy and, as such, is playing a key role in driving this strategy for the country,” Baloyi said.
She noted that online betting platforms have generated “negative public sentiment” because of concerns about gambling addiction. At the same time, debates continue over whether some forms of online gambling may conflict with provisions of South Africa’s National Gambling Act.
“The change in customer profile to online has seen a resultant migration of punters to games offered online, and KZN had minimal online presence, which is changing in 2026,” she said.
The regulator’s position comes amid growing pressure from politicians, civil society groups and industry stakeholders calling for tighter oversight of online betting.
Gambling market fuels jobs and tourism
KwaZulu-Natal remains one of South Africa’s largest gambling markets, generating gross gaming revenue (GGR) of more than ZAR6.3 billion ($384 million) during the 2024/25 financial year. Baloyi described the province as a unique market shaped by both advanced urban centres and rural communities.
“KwaZulu-Natal has an economy that comprises both advanced urban-industrial centres and underdeveloped rural regions with high poverty,” she said.
With a population of 12.3 million, the province accounts for 16.1 per cent of South Africa’s economic output and has an economy valued at more than ZAR1.18 trillion ($72 billion). The gambling sector contributes to tourism, investment, and employment across the province. According to KZNERA, casinos generated GGR of ZAR3.55 billion ($216.3 million), while betting contributed ZAR1.52 billion ($92.6 million). Limited payout machines generated ZAR880.5 million ($53.6 million), and bingo operations contributed ZAR372.3 million ($22.6 million).
“The province is a vibrant gambling tourist destination which contributes to GDP and job creation within the province,” Baloyi said.
KZNERA reported that 5,935 jobs were facilitated across the liquor and gambling value chains during 2026, supporting the government’s priorities of inclusive economic growth and job creation.
Concerns on illegal gambling cases remain
While the regulated sector grows, illegal gambling remains a major concern. According to data cited by KZNERA, reported illegal gambling incidents reached 8,651 during the 2024/25 financial year. Illegal activities range from Fahfee, card and dice games to illegal gambling machines, internet cafés and unlicensed online gambling operations.
“Illegal gambling internet café operations exist in more urban areas, contrasted by illegal slots, Fafi and dice in townships and more rural areas,” Baloyi said. She warned that illegal operators are increasingly using online platforms, cryptocurrency transactions and cross-jurisdictional loopholes to avoid detection.
“Licensed operators are also affected by unlawful competition and practices that undermine the fairness of the regulated environment,” she said.
To tackle the issue, KZNERA said it works closely with the South African Police Service’s Commercial Crime Investigation Unit and other agencies. Operations include the seizure of illegal gambling machines and efforts to shut down unlawful online gambling websites.
“The province has seen the need for inter-agency collaboration when addressing the increasing illegal gambling incidences,” Baloyi said.
As an accountable institution under the Financial Intelligence Centre Act (FICA), the regulator also monitors casinos, bookmakers, and online operators for suspicious transactions, unusual betting behaviour, and potential money laundering.
Rural development at centre of transformation drive
Transformation remains a core focus for KZNERA, with the authority directing licences and economic opportunities towards historically disadvantaged groups. “The focus is to create opportunities for those previously excluded from the gambling economy value chain and provide them with access to opportunities,” Baloyi said.
During the reporting period, the authority issued 759 new licences, with 85 percent allocated to black-owned small and medium-sized enterprises.
These included 92 gambling licences and 667 liquor licences. “Township and rural development must be at the centre of what we do,” Baloyi said.
The authority said it is also promoting transformation through its Horse Racing Masterplan and a dedicated transformation fund to develop horse racing opportunities in rural communities.
Community programmes target gambling harm
KZNERA says measuring the social impact of gambling is as important as monitoring economic returns. The authority carried out 158 social responsibility initiatives across KwaZulu-Natal, including school awareness programmes, community outreach campaigns and responsible gambling education.
Through these programmes, 3,891 people received awareness and prevention messaging designed to reduce alcohol and gambling-related harm.
“These included school awareness programmes, trader induction sessions, festive season campaigns, beach and mall activations, and community outreach interventions,” Baloyi said.
The regulator also mobilised ZAR15.4 million ($938,595) in corporate social investment funding, supporting education, sport, social welfare programmes and gender-based violence interventions. In addition, 76 trader workshops were conducted, benefiting 2,256 licensee representatives through compliance and responsible trading training.
KZN eyes growth through new gambling products
Looking ahead, KZNERA said it sees product innovation as a key driver of future growth. “One of the KZNERA’s strategies includes revenue maximisation, and as such, development of new products and lowering barriers to entry are some of the strategies,” Baloyi said.
The agency identified iGaming, sports betting and self-vending terminals as potential growth areas. KwaZulu-Natal currently hosts five land-based casinos, 16 bingo sites and 496 route operator sites, providing a broad gambling ecosystem for both investors and consumers.
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