Gamblers lose millions amid clampdown on illegal betting

Gamblers have forfeited more than R3m in winnings linked to illegal gambling activity over the past year as regulators intensify efforts to clamp down on unlicensed online betting platforms.

The forfeitures are part of a broader enforcement drive targeting unlawful gambling operators and South Africans participating on offshore or unlicensed betting sites.

According to the National Gambling Board (NGB), about R775,000 was forfeited during the 2025/26 financial year, while a further R2.3m has already been lost since the start of the 2026/27 financial year after high court orders obtained under section 16 of the National Gambling Act.

The latest forfeiture figures come amid heightened scrutiny of South Africa’s gambling sector, where policymakers and regulators are increasingly concerned about the rise of online betting and the impact on society.

Under the National Gambling Act, the NGB is empowered to investigate unlawful gambling activity and approach the high court to have proceeds linked to illegal gambling declared unlawful and forfeited to the government.

This means gamblers who win money through unlicensed operators risk losing all their winnings, even if they were unaware the platform was operating illegally.

“The forfeiture of proceeds derived from unlawful gambling activities demonstrates the NGB’s continued commitment to enforcing the NGA and supporting lawful and accountable gambling practices in South Africa,” acting CEO Lungile Dukwana said in a statement.

“These enforcement measures serve to protect the public and reinforce the consequences associated with unlawful gambling activities.”

The NGB said the court-ordered forfeitures were intended not only to punish unlawful operators, but also to deter consumers from using platforms that are not licensed locally.

South Africa’s gambling industry has experienced explosive growth in recent years, driven largely by online sports betting and digital casino-style offerings. The rise in smartphone usage, aggressive marketing campaigns and easier digital payment systems have fuelled participation, particularly among younger consumers.

But regulators have repeatedly warned that many online gambling sites accessible to South Africans operate outside the country’s legal framework. The regulator also warned that participants in illegal gambling activities have little legal recourse if disputes arise.

“This outcome further underscores the importance of a co-ordinated regulatory and judicial approach in protecting the public and maintaining the credibility of South Africa’s gambling industry,” Dukwana said.

The betting industry generated R1.5-trillion in turnover in the 2024/25 financial year, a growth of R400bn from the previous period as many consumers seek alternative income as the high cost of living weighs heavily on livelihoods.

Last month the NGB launched an online platform that provides the public with access to a consolidated and comprehensive list of all legal and verified licensed gambling operators in South Africa.

This initiative is part of the NGB’s efforts to combat illegal gambling while promoting responsible gambling practices, gambling only with locally licensed operators, protecting the public and protecting the economy.

“Illegal gambling continues to pose significant risks to consumers, including financial loss, lack of recourse in disputes, and exposure to fraudulent practices. By offering a reliable verification tool, the NGB aims to reduce these risks and strengthen public trust in the regulated gambling sector,” it said.