Hidden Costs of the Gambling Rise: How Illegal Operators and Problem Gambling Are Undermining South Africa’s Industry
South Africa’s gambling industry, the largest in Africa, continues to expand rapidly, but concerns around illegal black market operations and problem gambling are intensifying. Industry experts and regulators say stronger oversight, technology-driven monitoring and decisive enforcement are essential to protect players and sustain the sector’s growth.
Speaking to SportsBoom, Annalisa Emelia Samuels, Sales Manager at SYNOT Games, warned that the evolution of iGaming in Africa has outpaced protective frameworks.
“When iGaming started in Africa, nobody could have predicted what it would become,” Samuels said. “But where we are now shows an urgent need for stronger player protection.”
She stressed that responsible gambling must move beyond rhetoric to concrete action, highlighting gaps in monitoring systems. According to Samuels, effective oversight should include robust know-your-customer (KYC) procedures and the tracking of individual player deposits.
“At the moment, regulators rely heavily on risk profiling provided by operators. That is simply not enough to drive responsible gambling from a regulatory perspective,” she noted.
Concerns have grown since reports emerged in late 2025 of more than 90 offshore gambling platforms targeting South African players while operating without local licences. These sites, often registered abroad, fall outside the direct reach of domestic regulators.
Samuels acknowledged that illegal online gambling remains difficult to control but said progress is being made.
“With geo-blocking and closer cooperation between regulators and financial institutions, it can be achieved,” she explained. “Banks can help track deposits flowing from customer accounts into illicit platforms and prevent such transactions, whether in local currency or crypto.”
She added that a stronger regulated online gambling environment could significantly weaken illegal operators, a trend she believes is already emerging across several jurisdictions.
Regulators have echoed these concerns. Robin Bennett, Head of Regulatory Compliance at the Western Cape Gambling Racing Board, said decisive action is already under way.
“The board is actively dealing with illegal operators, and this work would not be effective without the support of law enforcement, with whom we have an excellent working relationship,” Bennett said.
He explained that all licence holders in the Western Cape must establish a locally registered company, and shareholders with more than a five percent stake are thoroughly vetted during the licensing process.
Bennett also revealed that the board is introducing new measures aimed at strengthening responsible gambling. Proposed amendments to general gambling rules have been published for public comment and are currently under review before implementation across provinces.
“There is a concerted effort to enhance responsible gambling through research, education, awareness and mandatory requirements for licence holders,” he said, adding that a Responsible Gambling Manager has already been appointed.
As South Africa’s gambling market continues to grow, industry leaders and regulators agree that the fight against illegal operators and the promotion of responsible gambling will be critical to ensuring the sector remains safe, transparent and sustainable.
Credit SportsBoom: link: https://www.sportsboom.co.za/betting/combating-black-market-operations-in-south-africa-and-the-fate-of-responsible-gambling
