Limpopo regulator targets illegal gambling in South Africa
South Africa’s Limpopo Gambling Board is preparing for a tougher fight against illegal and online gambling after a year in which betting-led growth lifted provincial levy collections but intensified pressure on land-based operators.
Talking to SiGMA News, chief executive of the provincial regulator Mokgase Gregory Makoko said the regulated industry was becoming a more important source of jobs, local procurement and public revenue, while unlicensed gambling was eroding those gains in rural and township communities.
“The gaming sector in Limpopo contributes to economic inclusion in two interconnected ways: first, by enabling licensed operations that create direct and indirect work opportunities; and second, by generating public revenue that strengthens the provincial fiscus for broader service delivery,” Makoko explained.
The Limpopo Gambling Board said levy collections rose to ZAR334m (about $20.5m) in FY2024/25 from ZAR260m ($15.9m) a year earlier. The rise was led by bookmakers, where levy income increased by 42 per cent. Casino and bingo levies were lower.
The black-market threat
In the meantime, illegal online gambling and informal betting are putting pressure on licensed venues, the board says, particularly in poorer communities where safeguards are limited.
Makoko described illegal gambling in rural and township areas as a persistent social and economic problem. “The most common forms include illegal gambling machines, illegal online gambling platforms, fahfee (an informal numbers-betting game also known locally as mochaina), and unregulated card and dice games,” he said.
One of the most difficult trends, he said, was the spread of machines in informal retail settings. “One of the biggest challenges is the availability of illegal gambling machines, which are easily accessible in local communities and often operate in places such as spaza shops (or convenience stores) and other informal businesses.”
The risk, according to the board, is not only lost tax. Unlicensed shops avoid responsible gambling controls, labour obligations and technical standards, while pulling spend away from licensed businesses that fund municipal rates, employment and corporate social responsibility projects.
The board’s enforcement data points to a large illegal market. Police and board officials seized 623 machines in 2024/25. The report lists 88 apprehensions, including 22 involving illegal online gambling, and 666 machines destroyed.
Makoko said enforcement in a large, dispersed province depends on police cooperation and local awareness. “LGB Law Enforcement Unit collaborates with South African Police Service to conduct joint enforcement operations and to arrest those who are involved in illegal gambling operations,” he said.
Balancing growth with social risk
Limpopo is not the only market facing that shift. The National Gambling Board put South Africa’s gross gambling revenue at ZAR74.9bn, about $4.6bn, for 2024/25. Betting on horseracing and sport made up 70 pr cent of the total. The board also said some bookmakers were offering casino-style interactive products “under the guise of betting on contingencies”.
For Limpopo, that shift has direct commercial consequences. The provincial board’s report cited the closure of Galaxy Bingo Bochum, attributing it to economic conditions, post-COVID pressure, online betting and illegal gambling. The closure cost 36 jobs and removed ZAR100,000 ($6,100) a month in levy revenue.
Makoko said the answer was not to block growth, but to regulate it more tightly. “The balance is achieved by regulating for ‘sustainable value’ rather than for growth alone,” he said. “Expansion, where it occurs, must be anchored in evidence, compliance readiness and social safeguards.”
Responsible gambling is being framed in similar terms. Makoko said the message had to be direct in poorer communities, where gambling may be seen as income rather than entertainment.
“In economically vulnerable communities, responsible gambling must be approached as a public-interest and harm-reduction responsibility rather than a compliance ‘add-on,’” he said. “The LGB’s starting point is to treat gambling as entertainment; not income.”
Limpopo shows the trade-off facing South African provincial regulators: betting is growing, but retail venues are under pressure and illegal operators are becoming harder to police. For the board, the test is whether gambling growth can still deliver jobs, local ownership and player protection.
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