Gauteng moves to regulate online gambling as betting market grows
The province is moving forward with the proposal because many people who gamble online in South Africa live in Gauteng, while licences and tax benefits are collected in other provinces.
South Africa.- Gauteng is preparing legislative changes that could allow the regulation of online gambling in the province as authorities seek to address the growth of digital betting and the loss of potential tax revenue. The provincial government confirmed that a draft amendment to gambling legislation is being developed to establish a clear regulatory framework for these activities.
Gauteng’s Member of the Executive Council for Finance, Lebogang Maile, said the province is moving forward with the proposal because many people who gamble online in South Africa live in Gauteng, while licences and tax benefits are collected in other provinces.
Gauteng contributes around 35 per cent of South Africa’s gross domestic product, but it no longer leads the country in gambling revenue. Provinces such as the Western Cape and Mpumalanga have overtaken it, partly because several major online betting platforms hold licences issued in those jurisdictions.
South Africa’s gambling framework allows provinces to issue licences for bookmakers and other gambling activities. Online betting on events such as sports and horse racing is permitted through licensed bookmakers, while interactive online casino gambling remains prohibited under national policy.
Despite these restrictions, online gambling has expanded rapidly in recent years, largely driven by mobile betting platforms. Data from the National Gambling Board shows that South Africans wagered more than R1.14trn (€59.9bn) in the financial year ending March 2024. Gross gambling revenue reached R59.3bn (€3.1bn), with betting accounting for about 60.5 per cent of the total.
Much of this betting activity occurs online, where sportsbooks offer wagers on sports and other events through digital platforms. Many of these operators are licensed in provinces such as the Western Cape and Mpumalanga, allowing them to offer services to customers across the country.
The current structure has created a situation in which gambling activity takes place nationally while tax revenue is collected by the provinces that issue licences. Provincial governments can generate income from gambling taxes, which have become an important source of revenue beyond traditional streams such as vehicle and liquor licences.
Gauteng’s proposed regulatory changes are intended to ensure that the province captures a share of revenue from online gambling within its population. Officials indicate that the amendment also forms part of broader efforts to address illegal gambling and bring digital betting within a regulated framework.
At the national level, efforts to introduce comprehensive legislation for remote gambling have been under discussion for several years, including proposals such as the Remote Gambling Bill, leaving provinces to manage gambling regulation within their own jurisdictions.
