South Africa’s fast-growing iGaming sector is facing increasing regulatory scrutiny as policymakers push for tighter controls on digital gambling, advertising and illegal operators. Speaking at SiGMA Africa, Deidre Baartman, Provincial Minister of Finance and Economic Opportunities in the Western Cape, said government and industry must work together to modernise gambling regulation while protecting vulnerable consumers.
Speaking about the future of gambling regulation, Baartman said authorities need to focus on “digitisation and technology” while also addressing advertising standards and illegal gambling activity.
Her comments come as online betting becomes the biggest driver of gambling revenue in South Africa. According to National Gambling Board data, the country’s total gross gambling revenue reached R74.5 billion ($4.47 billion) in the 2024-25 financial year, with betting contributing almost 70 per cent of the market.
Online betting drives gambling growth
South Africa’s gambling industry has expanded rapidly over the past three years, mainly due to mobile betting and digital gambling platforms.
National Gambling Board figures show betting revenue increased from 12.4 per cent of total gambling revenue in 2012-13 to nearly 70 per cent in 2024-25. Online betting revenue accounted for more than 85 per cent of total betting revenue during the same period.
The Western Cape has also become one of the country’s largest gambling markets. Industry data shows the province contributed 31.7 per cent of South Africa’s gambling revenue in 2023-24.
Baartman said the industry creates economic activity beyond gambling itself, including spending linked to flights, hotels and events. She also noted that the sector supports jobs and helps position Cape Town and the Western Cape as international business destinations.
Illegal gambling remains under pressure
A major issue for regulators is the rise of illegal online gambling platforms operating outside South African laws.
Baartman said authorities must have “a tough conversation about how do we appropriately regulate illegal gambling”.
The South African Bookmakers Association estimates that illegal operators now control about 62 per cent of the country’s online gambling market, with more than R50 billion ($3.02 billion) in gambling revenue reportedly flowing offshore each year.
The National Gambling Board has also identified dozens of offshore gambling websites operating unlawfully in South Africa.
For licensed operators, the issue remains commercially important because unregulated sites often avoid compliance requirements such as player verification, responsible gambling checks and local tax obligations.
Industry concerns have also increased around enforcement and oversight as the number of gambling licences continues to grow. Parliamentary data shows more than 3,000 gambling licences have been issued annually in recent years.
Advertising and consumer protection in focus
Baartman also highlighted concerns around gambling access among minors and the role of parents in monitoring digital activity.
“I do an appeal upon parents,” she said. “Make sure that if your child, especially if they are underage, you have a right to know what is going on in terms of those particular applications.”
The discussion around gambling advertising has become more visible across South Africa as betting brands increase sponsorship and marketing activity linked to sports and digital media.
Recent public debate has focused on the visibility of betting adverts and their impact on vulnerable consumers. Reuters reported that South Africa is considering additional taxes and regulatory measures as online gambling participation rises across the country.
For B2B stakeholders, the growing focus on regulation may increase demand for compliance technology, age verification systems and responsible gambling tools.
As South Africa’s online gambling market continues to expand, discussions around digital regulation, enforcement and consumer protection are expected to shape the next phase of the country’s iGaming industry.
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