South Africa issues more than 3,000 gambling licences annually amid regulatory concerns
The bulk of these licences go to limited payout machine (LPM) site operators and bookmakers.
South Africa.- More than 3,000 gambling licences are issued each year in South Africa, raising concerns about whether regulatory oversight can keep up with the industry’s expansion.
The figure was revealed in a parliamentary reply to Rise Mzansi MP Makashule Gana, which showed that 3,135 gambling licences were issued in the 2024/2025 financial year. These followed 3,174 licences in 2023/2024 and 3,186 in 2022/2023.
The bulk of these licences go to limited payout machine (LPM) site operators and bookmakers, indicating the role of this segment in the expansion of the South African gambling market. As stated in the response, provincial gambling boards remain responsible for issuing licences and overseeing operators within their jurisdictions. During the 2024/2025 period, Gauteng issued 753 licences, while KwaZulu-Natal and the Western Cape recorded 596 and 549 respectively.
The statement addressed Gana’s letter to Trade, Industry and Competition Minister Parks Tau, which flagged issues regarding the rapid growth of South Africa’s bookmaker sector and its comparison with international peers.
Lawmakers question how authorities ensure that licensed operators comply with rules on consumer protection, responsible gambling and financial reporting. There are also concerns about whether enforcement mechanisms are consistently applied across provinces, given differences in resources and capacity.
A separate response by the Police Minister to a parliamentary question by Rise Mzansi MP Songezo Zibi suggests possible limitations in enforcement. It revealed that over the past five financial years, a total of 32,938 illegal gambling cases were recorded, with land-based operations accounting for 99.9 per cent of the total. Only 36 illegal online gambling cases were reported to the police during the period, leading to 39 arrests and 22 convictions.
The data suggests that the low number of reported online gambling cases is due to the inherent challenges in tracing and evidencing digital offences. The Minister stated that the ease with which websites can be created and removed complicates investigations, while some prosecutions have failed following disputes over search warrants.
The issue is expected to remain under parliamentary scrutiny, as lawmakers call for stronger coordination between national and provincial regulators. Proposals under discussion include improving data-sharing systems, strengthening post-licensing monitoring and reviewing current regulatory frameworks.
