South Africa’s Gambling Crisis: Illegal Operators Dominate the Market

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South Africa’s Responsible Gambling Month ended with a stark revelation: the country is grappling with a full-blown illegal online gambling crisis. A new report from Yield Sec, commissioned by the South African Bookmakers Association (SABA), paints a grim picture, revealing that unlicensed operators control a staggering 62% of the Gross Gaming Revenue (GGR) for the 2023/24 fiscal year. This isn’t just a financial problem; it’s a societal one, impacting vulnerable individuals and undermining responsible gambling initiatives.

The numbers are alarming. Yield Sec identified 2,084 illegal gambling operators and 1,134 affiliates actively targeting South African players. A shocking 27% of South Africans – approximately 16.3 million people – engaged with these illegal platforms. This equates to a massive black market fueled by exploitation and a lack of regulation.

The report highlights the disturbing trend of “Vulnerability Victimisation,” where illegal operators actively target self-excluded players, undermining programs designed to help those struggling with gambling addiction. This brazen disregard for responsible gambling initiatives casts a dark shadow over the industry.

The dominance of illegal operators extends beyond revenue. Of the top ten online gambling operators in South Africa, only three hold local licenses, with a single licensed operator even making it into the top three. This imbalance significantly impacts the legal market’s ability to contribute to communities and fund responsible gambling programs.

Sean Coleman, SABA’s CEO, aptly describes the situation as a “pandemic,” calling for urgent government intervention. He advocates for measures like geo-blocking and payment restrictions to curb money flow to these illicit operators.

Ismail Vali, CEO of Yield Sec, emphasizes the far-reaching consequences: “This is not just a player protection issue, but a societal one,” he stated. “Illegal operators siphon revenue from the legal market, weakening its ability to support communities and safeguard players.”

The report’s forthcoming deeper analysis of self-exclusion exploitation promises further to expose the devastating impact of this illegal gambling epidemic. The urgent need for collaborative action among legal stakeholders is undeniable; South Africa must address this crisis to create a safe, sustainable, and ethical gambling environment for all.

 

Source: Yield Sec

iTHUBA Awarded Uganda National Lottery

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The Ugandan government has issued a 10-year licence to Ithuba Uganda, a subsidiary of South African firm Ithuba, to run a national lottery in what Finance Minister Matia Kasaija said was a move to raise public funds and support social causes. Kasaija said the signing of the partnership was a sign of ‘Ubuntu’ and would go a long way in strengthening relations between Uganda and South Africa. The duration of the National Lottery agreed is for a period of 10 years.

The National Lottery’s mission is to boost government revenue through a portion of gross sales, including gaming tax (approx. Shs 87 billion), and non-tax revenue (approx. Shs 60 billion) for good causes annually.

The generated revenue holds a noble purpose—it will empower initiatives in vital sectors: public infrastructure, education, health, and sports development. Together, we’re making a positive impact.

The National Lottery is also an agent of change. There is an anticipated creation of 1700 direct jobs for Ugandan Nationals, with the ripple effect extending to numerous indirect employment opportunities.

The National Lotteries and Gaming Regulatory Board is mandated and will be responsible for the supervision of the activities and operations of the National Lottery and its operator.