The National Gambling Board (NGB) is seeking a service provider to oversee the monitoring, blocking, tracking, and reporting of illegal online gambling websites that target consumers in South Africa.
Initially published on June 30, the expression of interest (EOI) was revised on July 17, changing the submission deadline from August 7 to September 4, 2026. This decision followed a briefing session for potential bidders held on July 15.
The illegal gambling sector in South Africa is significant, with Yield Sec's research for the South African Bookmakers’ Association (SABA) indicating that approximately 62% of online gambling activity involves illegal operators. Annually, over R50 billion (approximately $3.1 billion) in gross gambling revenue is believed to flow out of the country, according to this study.
During a parliamentary session on June 22, acting chief executive Lungile Dukwana informed the Portfolio Committee on Trade, Industry and Competition that a national policy on interactive gambling is yet to be established. He explained the need for a legal framework to regulate online gambling while the NGB engages with the National Gambling Policy Council on this topic.
Dukwana acknowledged that while some might raise technical and legal questions about blocking, many consider it a necessary requirement. He described the procurement exercise as exploratory, stating, "We want to understand what is in the market."
The proposed service aims to closely monitor and profile illegal gambling websites that target South African users, assessing their country of origin, licensing status, and ownership. The chosen provider will be responsible for blocking these identified sites and notifying the NGB, which will then refer the information to law enforcement. The provider will also need to track these sites and ensure they are blocked again if they re-emerge.
The initiative is grounded in the National Gambling Act, citing a duty to assist provincial licensing authorities in identifying unlicensed gambling. The NGB believes that developing the capability to block websites will aid in combating illegal gambling activities.
Currently, interactive gambling remains prohibited in South Africa. Although the National Gambling Amendment Act of 2008 intended to implement a licensing system for interactive gambling, it has yet to be enacted.
The EOI highlights the ongoing and unchecked proliferation of illegal interactive gambling, clearly stating that it continues "with impunity to the express prohibition."
With this initiative, the NGB does not foresee a one-time solution. Instead, it envisions an ongoing capability to block sites whenever illegal operators attempt to provide services to local customers. Relevant information collected during this process will also be provided to law enforcement to impose penalties on operators.
It's important to note that the EOI does not guarantee that a contract will be awarded. Rather, it seeks proposals from service providers that may be invited to take part in a subsequent Request for Proposal (RFP) or tender process. The NGB has stated it will use the submissions to help formulate its specifications for any future tender without any obligations to the service providers.
Currently, bidders need to provide a company profile, a tax clearance certificate (if not an international provider), and any pertinent licenses or certifications.
In response to the EOI, the Internet Service Providers' Association (ISPA) has raised concerns. South African law does not presently obligate internet service providers to block access to unlicensed gambling websites. ISPA cautioned against imposing such requirements without a clear legislative framework that balances communication rights with potential harm from problematic content.
ISPA chair Sasha Booth-Beharilal stated, "ISPA’s position is that any disruption of internet services to South Africans should be done only as part of a clear legislative framework."
While acknowledging that some illegal content may need to be blocked, ISPA insists on a strong legal basis, judicial oversight, and limited obligations. They also expressed doubts about the efficacy of blocking methods, explaining that domain-name blocking can be easily bypassed by skilled users.
The association pointed to a European court ruling that resulted in blocking a few shared IP addresses, ultimately affecting over half a million unrelated websites. ISPA criticized deep packet inspection, characterizing it as a tool typically employed by authoritarian regimes.
The NGB’s current capacity to tackle illegal gambling is limited. In a recent response to the National Assembly, the Minister of Trade, Industry and Competition indicated that the NGB had allocated only two resources and R596,000 for identifying illegal gambling sites in the 2025/26 fiscal year. The NGB database reportedly includes 90 illegal gambling websites, all operated by offshore companies.
The Ministry confirmed that the NGB does not engage directly with the operators. Of ten sites referred to Google Africa for removal from search results in 2024/25, none were removed by the time of the minister's reply. According to the NGB’s annual report, 23 out of the 90 operators blocked access to their own sites following intervention; however, users can still access them via evasive technologies.
Dukwana remarked that sites removed with Google and Meta’s assistance do not remain down long. He noted the necessity of the tracking function proposed in the EOI to address this issue. "They would appear the following day and be with something else," he explained.
SABA’s chief executive, Sean Coleman, acknowledged the importance of the procurement but advised against viewing it as a standalone solution. "Website blocking, while important, should not be viewed as a silver bullet."
The EOI requires bidders to articulate their operational needs and methodologies, identify potential stakeholders, delineate necessary approvals and consents at various stages, and elaborate on how they plan to overcome the challenges currently facing the NGB. Additionally, bidders must identify potential revenue streams that could help sustain the service.
While demanding considerable input from bidders, the EOI does not guarantee future contracts.
The NGB has refrained from commenting in detail on the EOI process, emphasizing that it is still actively underway, and submissions are pending. "The matters raised relate directly to an Expression of Interest process that is currently under way," the NGB stated, adding that they had conducted an information session for prospective bidders to ensure equal access to the same information throughout the procurement process. They indicated that further updates would follow once the EOI submission stage concludes.
