Sean Coleman, the CEO of the Association of South African Bookmakers (SABA), clarified his recent comments about the enforcement against illegal gambling in South Africa during an interview with iGB. He emphasized that the movement against black market gambling is currently in the advocacy and stakeholder engagement phase. "At this stage, it remains largely within the advocacy and stakeholder engagement phase," he stated, adding that the intention behind their recent statement was to contribute to a crucial national policy discussion, not to imply that legislative changes are on the immediate horizon.
Coleman’s remarks highlight SABA’s stance that South Africa's challenges stem from a lack of effective enforcement laws, rather than insufficient laws aimed at prohibiting illegal online gambling. In July, SABA proposed six legislative changes encompassing amendments to the National Gambling Act, the Electronic Communications Act, and the Financial Intelligence Centre Act, alongside coordinated actions from the Reserve Bank and other relevant regulators.
The severity of illegal gambling is underscored by a Yield Sec report commissioned by SABA, which found that illegal operators command about 62% of online gambling activity in South Africa. This results in over R50 billion in gross gambling revenue being funneled offshore annually, with around 16 million South Africans reportedly interacting with illegal gambling platforms in the past year.
Coleman noted that the extensive range of proposed reforms indicates the need for a collaborative approach. "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. SABA is focused on presenting evidence-based proposals to policymakers and supporting interventions that can be enacted both in the short and long term.
One positive aspect from SABA’s perspective is the National Gambling Board (NGB) calling for expressions of interest from service providers capable of monitoring and blocking illegal gambling websites, with the announcement made on June 30 and submissions due by August 7, 2026. Coleman mentioned that SABA has not received further details beyond what was released in the public tender but acknowledged that NGB is taking steps to enhance its capabilities in combating illegal gambling.
Coleman described the emphasis on technology as a promising recognition of its role in addressing illegal gambling. He stated, "What is encouraging is that this reflects an acknowledgement that technology must form part of any meaningful enforcement strategy. Illegal operators are highly sophisticated… Manual enforcement mechanisms are therefore unlikely to be sufficient on their own."
He stressed that while technology is crucial, it should not be viewed as a complete solution. "SABA has consistently advocated for a multi-layered approach that combines technology, legislation, and coordinated enforcement. Website blocking, while important, should not be viewed as a silver bullet," he stated.
Since the July statement, there has been no direct communication with the Internet Service Providers’ Association (ISPA) regarding its position paper, which suggested that any disruption of internet services should follow a clear legislative framework. Coleman reiterated that ISPs should not carry the sole burden of addressing illegal gambling; rather, a collaborative framework involving legislative backing and multiple enforcement mechanisms is necessary.
SABA’s July statement referenced the success of Australia’s 2017 overhaul of its Interactive Gambling Act, which led to significant reductions in illegal online gambling. Coleman attributed the challenges in South Africa to its fragmented regulatory structure, where gambling regulation falls under nine provincial licensing frameworks, making coordinated enforcement difficult. He expressed concern about how illegal operators cater their offerings to the South African market, emphasizing the need for consumer education to mitigate vulnerabilities.
Asked to prioritize a specific intervention, Coleman indicated a preference for establishing a legally sound mechanism to disrupt access to illegal gambling sites through coordinated technological measures. He also mentioned the necessity of a public registry of licensed operators and an expanded consumer awareness initiative, stressing the urgency of action to protect consumers currently led to illegal platforms. "Every day South African consumers are being directed towards illegal operators that provide none of the protections associated with regulated gambling," he warned.
Coleman concluded by rejecting the idea that SABA's efforts were merely to protect licensed operators from competition. "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," he stated.
The dialogue continues around how best to balance consumer protection and the challenges posed by illegal gambling in South Africa.
