ISPA warns against unlicensed online casinos and offshore betting sites
Online gambling across both legal and unregulated channels accounts for an annual spend of roughly R75bn (€3.93bn) in South Africa.
South Africa.- South Africa’s Internet Service Providers’ Association (ISPA) has issued a warning over the growing use of unlicensed online casinos and sports betting platforms that fall outside the country’s regulated gambling system. According to the group, offshore platforms often offer unfavourable odds and lack consumer protections, significantly increasing the risk of financial loss for players.
ISPA also noted that local banks are legally obliged to confiscate winnings associated with unlawful gambling activity, further reducing the appeal of illegal online gambling.
According to industry estimates, online gambling across both legal and unregulated channels accounts for an annual spend of roughly R75bn (€3.93bn) in South Africa. ISPA Chair Sasha Booth-Beharilal described participation in unlicensed gambling as “extremely reckless”, stressing that consumers expose themselves to unnecessary financial and legal risks by engaging with offshore operators.
Conversations on how best to address illegal online gambling have increasingly focused on the role of internet service providers. ISPA highlighted that South African law prohibits ISPs from intercepting or monitoring user traffic, making it difficult to enforce calls to block unlawful gambling platforms.
While some technical measures, such as domain name system blocking, are relatively inexpensive, they can be easily bypassed and raise concerns about privacy and network performance. More advanced techniques, such as deep packet inspection, carry higher costs and pose greater risks to user rights.
Booth-Beharilal noted that any move to introduce content blocking must be supported by clear legislation that strikes a balance between free communication and harm reduction, while also addressing associated costs. She added: “South Africans must not have their communications interfered with, and any internet censorship must carefully balance their rights.”
Across the industry, regulators and consumer groups continue to stress the importance of using locally licensed operators, which are subject to provincial licensing conditions and responsible gambling safeguards. ISPA said it is open to working with policymakers and industry stakeholders to develop a fair and balanced approach to addressing illegal gambling.
