South Africa’s gambling regulator to crack down on influencer ads

South Africa’s gambling regulator to crack down on influencer ads

Licensing authority aims to limit ads that air during times when minors are likely to see them and to remove misleading advertising claims.

South Africa.- The National Gambling Board (NGB) is planning to impose stricter regulations on betting advertisements, particularly those promoted by influencers who appeal to younger audiences. In a recent interview, acting CEO Lungile Dukwana emphasised that addressing this issue is the board’s primary focus, as South Africa’s betting industry continues to grow, raising concerns about its effects on vulnerable groups.

The NGB oversees gambling activities nationwide, working alongside provincial licensing authorities to enforce rules. Dukwana explained that the board aims to limit ads that air during times when minors are likely to see them and to remove misleading advertising claims. He said: “One of the issues is to stop using, for example, the issue of the influencers whose target is normally younger people in terms of their advertising. I think that’s number one.” 

He added that operators must stick to their licensing terms, such as not advertising outside their approved provinces; for instance, a licence in Mpumalanga does not allow national promotion.

The push is driven by the rapid growth of online betting, which has outpaced traditional casinos since the COVID-19 period when people turned to mobile and desktop options for convenience. The NGB reported gross gaming revenue of R59.3 billion (€2.9bn) for the 2023/24 financial year, a 25.7 per cent increase from the previous year. Dukwana noted that easy access through phones has fuelled this growth, but it has also drawn in young people and those from lower-income backgrounds, prompting partnerships with universities and technical colleges in areas like Gqeberha to run education programmes.

The NGB’s focus on influencers stems from real-world impacts on minors, with reports highlighting cases like an 18-year-old student who lost R150,000 (€7,350) on a popular betting site after being lured by influencer ads portraying betting as “easy and fun”. According to a 2018 study, 13 per cent of South African gamblers experienced family problems due to early exposure to gambling, often through promotions, which led to debt and academic difficulties.

Beyond influencers, the NGB is carrying out enforcement actions against unlicensed offshore operators that operate online without approval. Dukwana noted that the board is collaborating with the Independent Communications Authority of South Africa, internet service providers and the Department of Communications to block them. The joint effort has led to the shutdown of 23 sites out of 90 identified so far. 

Dukwana admitted that enforcement is challenging because these operators can quickly change IP addresses to evade authorities. The exact size of this illegal market remains unknown, making it hard to measure its full impact. He also called for updates to the National Gambling Act, particularly Section 11 on online gambling, to better handle digital challenges. 

The board plans to present proposals to the National Gambling Policy Committee later this month, including a plan to collaborate with the advertising standards regulator to remove non-compliant ads.

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