Gaming Law 2025

SOUTH AFRICA Law and Practice Contributed by: Wayne Lurie, Lurie Inc

1. Introduction 1.1 Current Outlook and Recent Changes Online Growth South Africa’s bookmaking sector continues to expand at a remarkable pace, with increasing mobile and online access transforming consumer engagement. In 2024/25, total gambling turnover is estimated to have reached ZAR1.5 trillion with bookmakers said to be worth more than two-thirds of this. On the face of that, the number is massive and said to be equivalent to 31% of national consumer spend, but is deceptive in that it ignores “churn” or “re-betting of winnings”. This “churn” can account for as much as 95% of what is reported as “bets”. For this reason, operators’ gross gambling revenue (GGR) reportedly stood at approximately ZAR75 bil- lion (+/- USD4 billion) constituting 1.5% of total con- sumer spending and confirming the sector’s continu- ing dominance in the entertainment economy. While GGR growth has been rapid, reported as being 26.2% over the past year, average households still spend more on categories like alcohol than gambling. Amid this expansion, recent misinterpretations of legal developments have led to confusion with a massive media explosion in October 2025 when the national gambling regulator, the National Gambling Board (NGB), put out sensationalist press releases surround- ing a gambling judgment and misstating that this out- lawed anything but pure sports betting online. The Supreme Court of Appeal (SCA)’s Portapa judg- ment, while important, applies narrowly to Gauteng’s definition of a sporting event and found that a Gaut- eng-based bookmaker was not permitted to offer bets on the broadcasting of a live studio roulette offering as roulette did not fall within the scope of events available to bookmakers in Gauteng. The NGB’s subsequent position, suggesting this invalidates fixed-odds bet- ting on all contingency games (including RNG-based (random-number-generation-based) games) country- wide, is incorrect and in conflict with South Africa’s constitutional framework. The actual legal position remains that South Africa’s gambling landscape is governed by concurrent national and provincial com- petency. Provincial regulators like the Western Cape

Gambling and Racing Board retain clear and lawful authority to license and regulate fixed-odds betting on non-sporting contingencies, including games mimick- ing traditional casino products. The author clarified this distinction in numerous legal and media engagements. The SCA’s decision does not outlaw licensed betting on casino-style outcomes in jurisdictions where such contingencies are permit- ted under local law. Public statements to the contrary by the NGB risk generating confusion among licen- sees, consumers, and commercial stakeholders. Social Risk and Regulatory Momentum South Africa is not immune to global concerns about rising gambling participation and consumer over- exposure. Some studies suggest 40% of working South Africans gamble frequently, with one in five having borrowed or sold assets to fund their activity. However, closer examination of the data shows that betting’s growth is largely displacing other discretion- ary recreational spending (eg, cinemas or magazines), not necessities such as food or education. Still, the NGB and other stakeholders have advocated for tighter regulation, particularly around advertising. Operators spent an estimated ZAR2.6 billion on mar- keting in 2024/25, more than telecoms or the fast food sector, and this prominence has driven calls for reform. Recommendations include restricting gam- bling ads during daytime and capping the number of gambling promotions per commercial break. The Advertising Regulatory Board (ARB) has also become very vocal in recommending advertising restrictions out of fear of the worst-case alternative in the form of an outright ban on gambling advertising by government. Whilst beyond the scope of this guide, it is worth commenting at a broad level that a prohi- bitionist approach to advertising would very unlikely curtail or significantly alter the prevalence of gambling, or propensity to gamble, but would more than likely push play toward illegal channels. Legislative Stalemate, Industry Reform Despite market growth and social concern, the leg- islative progress remains stalled, as it has been for the better part of 20 years, unfortunately. The long-

429 CHAMBERS.COM

Powered by