The South African Bookmakers Association (SABA) which represents licensed bookmakers and betting operators in South Africa, is calling for explicit regulation within the industry.
Sean Coleman, SABA’s CEO, shares his insights on sustainability, data services, taxation, and offshore gambling with SiGMA News. “We want to ensure there is appropriate clarity that aligns with both the law and the practical realities of a digital industry.”
Building a sustainable betting ecosystem
Coleman believes sustainability depends on balance across regulation, enforcement, and market realities. He explains that a strong ecosystem benefits operators, consumers, and the state simultaneously. “A sustainable betting ecosystem is one where regulation, enforcement, and market realities are properly aligned.”
However, he stresses that regulation alone is not enough to secure long-term stability. Effective enforcement remains essential, particularly in addressing illegal gambling operators. Without that, even the best regulatory framework becomes undermined.
Coleman adds that sustainability isn’t just about growth; it’s about maintaining integrity, ensuring player protection, and creating a level playing field where compliance is rewarded, not penalised.
He also highlights the importance of policy certainty for long-term investment decisions. He adds that policy stability, regulatory certainty, and appropriate taxation are essential for long-term investment.
The growing role of data in African markets
Data is becoming central to how regulated betting markets evolve across Africa. Coleman sees it as a tool for both compliance and improved consumer outcomes. Data is going to be the defining factor in how effectively African markets regulate and grow. It enables smarter oversight—real-time monitoring of betting patterns, early detection of suspicious activity, and stronger anti-money laundering controls.
He emphasises that data can also strengthen responsible gambling measures. “Beyond compliance, data also drives better consumer outcomes. It allows operators to identify risky behaviour early and intervene appropriately, which is central to responsible gambling.”
Technology, including artificial intelligence, is already playing a role in these improvements. “The introduction of AI in this environment has proven successful.”
Coleman argues that jurisdictions investing in data-driven systems will gain a competitive advantage. “At a broader level, jurisdictions that invest in data-driven regulation will be far better positioned to attract credible operators and build sustainable markets, rather than becoming targets for exploitation by offshore entities.”
Regulatory clarity and legal challenges
SABA’s recent media statement in response to the National Gambling Board over its stance on Remote Gambling Servers reflects its concerns about regulatory interpretation uncertainty. SABA contends that the NGB is overstepping by classifying these systems as illegal “interactive gambling.” The association cautions that this interpretation could blur established regulatory boundaries.
Coleman warns that unclear rules could discourage legitimate investment in the local market. He says that the authority’s concern is that an overly restrictive or unclear approach risks discouraging investment in compliant, locally regulated operations, while doing little to address the offshore market, which remains the real challenge.
He reiterates the need for clarity that reflects both legal requirements and industry realities. “We want to ensure there is appropriate clarity that aligns with both the law and the practical realities of the digital industry, enabling licensed operators to operate efficiently while remaining fully accountable to South African regulators.”
SABA also calls for fairness in how regulators communicate with the public. “The South African Bookmakers Association believes fairness and accuracy require two actions: regulators must clearly inform the betting public about applicable laws, and they must avoid portraying licensed bookmakers as operating outside the law without justification.”
Taxation pressures and market risks
The proposed 20 per cent national betting tax is another major concern for South Africa’s industry. Coleman believes such a measure would have unintended consequences for both operators and consumers. “A blunt increase of that magnitude would be counterproductive.”
“It would materially reduce margins for licensed operators, forcing them to tighten odds and promotional offerings.” He expects consumers to respond quickly to less competitive offerings. “The unintended consequence is that highly price-sensitive consumers will migrate to illegal offshore platforms offering more attractive returns.”
International experience supports this concern, according to Coleman. He warns that this shift could weaken both the industry and regulatory oversight. That erodes the tax base, undermines compliant businesses, and ultimately weakens consumer protection. A balanced approach, he argues, is essential for maintaining a healthy market. “A balanced tax framework should support channelisation into the legal market, not incentivise its erosion.”
Combating illegal offshore gambling in South Africa’s industry
Illegal offshore platforms remain one of the biggest threats to South Africa’s regulated market. Coleman outlines three immediate actions to address the problem effectively. The first focuses on limiting financial access to illegal operators. “First, payment disruption is critical.”
“If you make it difficult for consumers to deposit and withdraw funds from illegal operators, you significantly reduce their viability.” The second involves cooperation with digital platforms to reduce visibility. “Second, greater collaboration with digital platforms, such as search engines, social media, and app stores, to limit the visibility and accessibility of unlicensed operators.”
The third highlights the need for stronger public awareness campaigns. “Third, sustained public awareness.”
“Many consumers don’t fully appreciate the risks of using offshore platforms.” Coleman emphasises that isolated efforts will not be enough to solve the issue. “None of these measures work in isolation.” “What’s required is a coordinated, multi-stakeholder approach that treats this as a systemic issue rather than a peripheral one.”
Sean Coleman emphasises on a clear enforcement strategy. “The optimal South African strategy is: ‘Block access plus choke payments plus criminalise the ecosystem.’”
“Without payment disruption and centralised enforcement, any prohibition regime will continue to be bypassed,” he concludes.
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