On Monday, South Africa’s National Gambling Board (NGB) responded to criticisms surrounding its recently launched Verified Gambling Operators web portal. This system, which aims to centralize information on licensed gambling operators throughout the country, has come under scrutiny for listing some operators as “CLOSED” and omitting certain licensed online operators. The introduction of this portal earlier this year marks South Africa’s first comprehensive effort to consolidate data on both land-based and some online gambling licenses in one place. The initiative is intended to help safeguard South Africans by making the verification of legal operators more accessible.
The acting CEO of the NGB, Lungile Dukwana, emphasized the portal’s importance in protecting the public from illegal gambling activities. The portal, accessible via the NGB website, aggregates data from all nine Provincial Licensing Authorities (PLAs) in South Africa. Despite the intent to enhance transparency, some entries marked as “CLOSED” have led to confusion about the legality of certain operators. This label has especially concerned those associated with Limited Payout Machine (LPM) sites, raising questions about whether these operators are operating lawfully or are defunct. Additionally, there were concerns about the absence of some online gambling operators in the register.
The NGB clarified that a “CLOSED” status does not necessarily indicate illicit operations. It may result from various reasons such as temporary closures for renovations, pauses in trading, unpaid fees, or contractual disputes. The board warned against premature assumptions suggesting regulatory failures due to these listings. It also clarified that the absence of some online operators does not relate to the pending Remote Gambling Bill B11-2024. Instead, current regulations are grounded in the National Gambling Act of 2004 and corresponding provincial laws, rather than forthcoming legislation.
The portal currently includes licensed bookmakers who are authorized by provincial authorities to offer online sports betting, aligning with existing legal frameworks. Despite the intention to provide a comprehensive resource, the integration of data from multiple provincial systems presents challenges in ensuring the completeness and timeliness of the information. The NGB acknowledged these issues and is committed to collaborating with PLAs to improve data quality and the accuracy of reporting processes. To address these concerns, the NGB has invited feedback from stakeholders to enhance the portal’s functionality.
South Africa’s gambling landscape remains intricate, primarily due to the distinct regulatory responsibilities of provincial authorities over land-based betting and casinos, while online gambling regulation continues to evolve. A recent Gauteng High Court ruling confirmed that iGaming is still illegal under current national law, underscoring discrepancies in provincial enforcement and highlighting the gap between existing legislation and the realities of the digital market.
The discussion around the portal’s reliability coincides with broader financial pressures facing South Africa’s gambling sector, primarily due to proposed tax hikes. Industry representatives have expressed concerns that increased VAT on gambling services, coupled with rising provincial gambling taxes, could strain licensed operators. Sean Coleman, CEO of the South African Bookmakers Association (SABA), estimated that with these levies, the tax burden on operators could reach 39%, potentially positioning South Africa’s gambling industry as one of the world’s most heavily taxed.
Operators have argued that such tax increases might push consumers towards unlicensed gambling platforms, thereby undermining regulatory oversight and diminishing the competitiveness of the legal market. The Free Market Foundation (FMF) has criticized the tax hike, arguing that it would be mostly unenforceable against online casinos and would disproportionately affect licensed bookmakers who already contribute significant taxes to provincial regulators.
Looking ahead, the NGB has committed to refining the portal, with an emphasis on improving the accuracy and completeness of the data provided. As the gambling sector continues to navigate regulatory and financial challenges, the NGB’s focus will be on ensuring that its system remains a reliable resource for verifying legal operators while addressing stakeholder concerns about tax burdens and market competitiveness. The ongoing review and enhancement of this platform are expected to play a crucial role in South Africa’s regulatory landscape.
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