The South African Bookmakers Association (SABA) has called for a ban on unlicensed prediction markets, citing concerns about their impact on sports integrity, consumer protection, anti-money laundering (AML) practices, and tax revenues. The association asserts that companies operating prediction market platforms should comply with the same regulations that govern gambling exchanges and should not escape oversight by labeling their services as forecasting or information markets.
SABA referenced a report from the International Federation of Horseracing Authorities (IFHA), which identified prediction markets as a potential threat to the integrity of sports. The association warned that the risks associated with these markets extend beyond athletics to areas such as elections, public official selection, regulatory decisions, and financial events, where market manipulation can be particularly hard to trace.
Additionally, SABA expressed its concerns regarding the current South African gambling legislation's stance on prediction markets, arguing that their business model parallels that of betting exchanges, as both facilitate peer-to-peer betting. The association highlighted how unregulated prediction market operators could pose further challenges related to money laundering, complicating regulators' ability to access necessary information and enforce penalties.
The association concluded by emphasizing that prediction markets should remain banned until a robust regulatory framework is established, one that encompasses licensing, consumer protection, monitoring, anti-money laundering protocols, and taxation.
