In an interview with iGB, Sean Coleman, the CEO of the Association of South African Bookmakers (SABA), clarified his recent comments regarding the ongoing efforts to combat illegal gambling in South Africa. He emphasized that those efforts are still largely in the advocacy phase and are not indicative of any immediate legislative changes on the horizon. "At this stage, it remains largely within the advocacy and stakeholder engagement phase," Coleman stated. "The publication of our statement was intended to contribute constructively to what we believe is an increasingly important national policy discussion rather than to suggest that legislative amendments are imminent."
Coleman’s remarks provide insight into SABA's position that the real issue in South Africa is not the absence of laws against illegal online gambling, but rather inadequate enforcement due to existing regulations. In July, SABA proposed six legislative amendments aimed at strengthening several laws, including changes to the National Gambling Act, the Electronic Communications Act, and the Financial Intelligence Centre Act, as well as coordinated efforts from the Reserve Bank and other regulatory bodies.
The scale of illegal online gambling in South Africa is alarming. A report commissioned by SABA suggested that illegal operators represent roughly 62% of the online gambling market in the country, siphoning over R50 billion in gross gambling revenue out of South Africa annually. This trend has drawn around 16 million South Africans into illegal gambling activities in the last year alone.
Coleman noted that the complexity of these proposed reforms necessitated a unified response. "Our proposals touch on gambling regulation, electronic communications, payment systems and financial intelligence legislation, which means that a coordinated approach will ultimately be required," he explained. He underscored SABA's commitment to presenting evidence-based policy proposals to lawmakers and advocating for effective short- and long-term measures.
A recent positive development noted by SABA is the National Gambling Board’s (NGB) August 30 announcement inviting expressions of interest from providers capable of monitoring and blocking illegal gambling websites. Coleman indicated that, as of now, SABA had not received additional information beyond what was shared in the public tender. "Our understanding is that the National Gambling Board has commenced a procurement process for specialized services aimed at strengthening its capabilities in identifying and responding to illegal online gambling activities," he said. However, details on implementation timelines or operational specifics have not been disclosed.
Coleman expressed hope that this effort reflects an increased awareness of the role technology can play in addressing illegal gambling. "What is encouraging is that this reflects an acknowledgement that technology must form part of any meaningful enforcement strategy," he noted, adding that illegal operators are sophisticated and can quickly react to enforcement efforts by creating new websites. He emphasized that technology should be viewed as part of a larger solution rather than a standalone fix.
SABA has previously responded to a position paper issued by the Internet Service Providers’ Association (ISPA) on July 2. The ISPA paper suggested that internet disruptions for gambling blocking should only occur within a clear legislative framework, and that ISPA does not believe it should bear sole responsibility for combating illegal gambling. Coleman reiterated SABA’s stance, stating their intent is not to assign sole responsibility to ISPs but rather to establish a comprehensive framework that includes legal authority and legislative backing.
Coleman elaborated on the unique challenges South Africa faces compared to markets like Australia and the UK, noting that South Africa has a fragmented regulatory structure with multiple provincial licensing authorities. This complexity complicates enforcement efforts. He also highlighted how illegal operators have localized their marketing and payment methods, luring vulnerable consumers amid significant socio-economic challenges. Coleman argued that public education on the risks of illegal gambling is critical.
When asked which intervention he would prioritize, Coleman identified a centralized approach to disrupt access to illegal platforms through technological means, coupled with a public register of licensed operators and consumer awareness initiatives. He voiced concern over the urgent need to protect South African consumers who could be unknowingly directed to unregulated betting sites.
Coleman firmly rejected any notion that SABA’s advocacy focuses on protecting its members from competition. He stated, "This is not a debate about protecting licensed operators from competition. It is about ensuring that South African consumers receive the protections parliament intended when it created our regulated gambling framework. If consumers are gambling, they should do so within a regulated environment that provides responsible gambling safeguards, contributes to the fiscus, and operates subject to South African law."
