NLC commissioner calls for stronger global action against illegal lotteries
She said such activities divert revenue away from licensed operators and social development programmes.
Morocco.- The South African National Lotteries Commission (NLC) has urged intensified international cooperation to tackle illegal lotteries and unregulated gaming activities, warning that weak enforcement continues to drain public funds and put consumers at risk.
Speaking at the European Lotteries Industry Days 2026 in Marrakech, Morocco, NLC commissioner Jodi Scholtz said illegal lottery activity is becoming more sophisticated, especially online, and requires closer coordination between regulators, law enforcement and industry players.
Scholtz told delegates that illegal operators are exploiting regulatory gaps, particularly through online platforms and promotional schemes that require entry fees. She said such activities often mislead consumers while diverting revenue away from licensed operators and social development programmes.
She added that proceeds from South Africa’s national lottery are channelled into public-benefit initiatives, including community development projects, and stressed that this funding stream is being threatened by illegal gambling networks.
The NLC also warned that unregulated lotteries expose players to risks such as financial loss, fraud and identity theft, while also weakening confidence in regulated systems. Vulnerable groups, including elderly persons, low-income households and digitally inexperienced users, were also identified as primary targets of illegal operators.
The commission estimated that while South Africa’s national lottery generated more than R7bn US$424m) in 2025, illegal gambling activity continues to divert revenue from the formal sector, with funds often moving offshore.
Scholtz called for a coordinated response involving regulators, law enforcement agencies, policymakers and industry stakeholders, supported by sustained public awareness campaigns to help consumers distinguish licensed products from illegal schemes.
The discussions took place during EL Industry Days 2026, held under the theme “Lotteries Bridging Continents,” bringing together representatives from 39 countries across Africa, Europe, North America and Australia to address major industry issues, including regulation, digitalisation and responsible gaming.
The NLC said strengthening cooperation across jurisdictions remains central to protecting lottery integrity and ensuring continued funding for public-benefit programmes.
