South African Online Gambling Laws

Is online gambling legal in South Africa? The truth is that there is no clear-cut answer. Although there are online gambling laws in South Africa, playing at online casinos in South Africa is a grey area, which we'll explain.

Is Online Gambling Legal in South Africa 2024?

Yes.... and no.

In South Africa, gambling is regulated under the National Gambling Act (NGA) of 2004. While this legislation and the updated laws of September 2011 state that online gambling is illegal in South Africa, many South Africans still enjoy online casino services and games.

This is because the South African online gambling laws are geared towards the online casinos themselves and do not target individual players.

An amendment proposed in 2008 to license online casinos was never passed, and a 2010 Gauteng High Court ruling reinforced the ban on online gambling. As a result, the outdated 20-year-old legislation leaves online gaming, betting, and gambling in a state of limbo.

This means that online gambling in South Africa has many blurred lines. That might seem like a good thing - after all, who doesn’t love a good loophole - but honestly, it’s better in law, just as it is in gaming, to know the rules before you play.

The Democratic Alliance (DA) and the Department of Trade, Industry and Competition (DTIC) have proposed an Online Gambling Bill and a National Gaming Policy, respectively. But as we know, the wheels of government grind slowly. 

Both are waiting for further comments or to be rubber-stamped, so we’re stuck with the 2004 NGA and have no proper legislative framework in place.

Provincial gambling boards regulate domestic gambling sites for permitted gambling activities, with the National Gambling Board playing an oversight role. Still, many operators outside South Africa's jurisdiction are extremely popular with South Africans. (See more below under Online Gambling Licences).

What is certain is that the sector is so big and important in terms of potential tax revenue for the government and job creation that sooner or later, a new law will be passed, or the existing ones will be changed.

Timeline of South Africa's Gambling Laws

Gambling laws in South Africa have undergone many changes since South Africa’s Gambling Act of 1965 was enacted. Since then, the gambling industry has undergone many changes, and the rise of online casinos has added a new dimension.

To fully understand the current legal status of gambling in the country, we have to take a quick look at the evolution of the laws across history. During the colonial era, gambling was extremely popular but usually carried out as an illegal activity.

Gambling Act of 1965

After forming an independent South Africa in 1910, the first clear-cut laws on gambling were framed in 1965. The Gambling Act prohibited all forms of casino gambling and sports betting, except for betting on horse racing, which was allowed to continue.

During this Apartheid era, the Government created territories called “bantustans,” set aside exclusively for the black citizens of the country. These territories had relative self-autonomy, which allowed casinos to operate even if they were illegal under South African law.

The major territories for casino gambling in this era were the Bantustans of Bophuthatswana, Ciskei, Transkei, and Venda. However, due to the apartheid laws, these establishments were not open to the white citizens of South Africa.

National Gambling Act of 1996

By the time of the abolition of apartheid in South Africa in 1994, over 2000 such illegal casinos were operating in former Bantustan regions across the country. Given the popularity of gambling in the country and the potential for important revenue generation, the new government passed the first laws legalizing all major forms of gambling.

Under the new national gambling laws, sports betting, casino gaming, bingo, and lotteries were legalized. A new system of licensing and taxation was also created, and over 40 new licenses were awarded to businesses in these sectors. A national lottery and a National Gaming Board were created to oversee online casinos and gambling regulations.

National Gambling Act of 2004

In 2004, a new gambling law was created to replace the 1996 version, adding new provisions regarding player safety, standards, and regulation/licensing. However, the main new feature of the 2004 version of the law was the prohibition on online casino gambling. As per the Gambling Act 2004, no firm based in South Africa can legally offer online casino games to citizens and residents.

National Gambling Act Amendment of 2008

The prohibition on online casino gambling was found to have no practical effect on the gambling market in South Africa. Given the free nature of the internet, offshore operators could accept players from South Africa at online casinos with relative impunity, leading to revenue losses to South African businesses and government tax income.

To counter this, proposals for an Amendment were successfully passed by the legislature in 2008. The main feature of this amendment was the creation of a licensing system for South African gambling businesses to run online casinos under strict standards. Although the law was passed, it was never enforced.

Several complications prevented its passage to the gazette and final approval from the President – the last vital step required to pass a law in South Africa. One reason could be the complications created by a High Court order in Gauteng – it effectively prohibited online casino gambling in South Africa, creating a potential clash with the 2008 Amendment.

As a result, the 2008 Amendment has remained in perpetual limbo, with no news regarding its eventual fate. As of 2021, the 2004 Act is still the law of the land in South Africa regarding online casino gambling.

Future of Gambling Laws in South Africa

Several alternatives have been mooted for the current status of online gambling in the country. In 2014, the government invited opinions from the public and businesses regarding a potential bill to legalise online gambling. However, no further progress has been recorded on this movement as well.

The 2020 COVID crisis has proven to be a game-changer here. The pandemic significantly affected consumer usage patterns – across the globe, players were forced to switch from offline to online gambling, and this was also felt in South Africa.

DA's Proposal of Online Gambling Bill in 2024

The Remote Gambling Bill (B11-2024) aims to establish regulations in South Africa to address the lack of oversight in online gambling. The Democratic Alliance (DA) stresses the bill's importance, having been carefully crafted over two years to balance consumer protection, operator regulation, and effective administration.

The DA argues that the absence of regulation leads to criminal activities, revenue losses, and job displacement to other jurisdictions. They criticize the ANC government for its inaction over the past 16 years, failing to protect players and the industry.

What Does The Remote Gambling Bill Entail?

The bill proposes comprehensive measures to regulate the online gambling industry, safeguarding consumers and ensuring fair operation standards. It emphasizes the need to fill the current regulatory gap.

The DA believes the bill is essential for protecting vulnerable individuals and sees the potential decline in the ANC's majority as an opportunity to advance this crucial legislation.

South African Provincial Licensing Authorities (PLA) 

South Africa has nine PLAs, one for each of its nine provinces. Each PLA reviews applications for gambling licenses and grants licenses for casinos, betting, gambling, and racing. The PLAs also monitor regulated gambling activities within their jurisdictions and ensure licensed operators comply with provincial gambling laws and the National Gambling Act of 2004.

The provincial gambling boards in South Africa are:

National Gambling Board

The National Gambling Board (NGB) oversees the South African gambling industry and enforcement of gambling regulations in the country. Licensed South African online gambling sites maintain industry standards of safety, legality, and quality to ensure they do not gain an unfair advantage over their players, intentionally or unintentionally.

The Gambling Regulators African Forum (GRAF)

The Gambling Regulators African Forum (GRAF) is a body of representatives of gambling regulators in Africa. Some of its objectives are to provide a forum for members to exchange information and views and discuss gaming policies, to keep gambling free from criminal influences, to protect consumers and maintain fairness in online casino environments, and to promote responsible gambling, among others.

As one of Africa’s biggest economies, South Africa's gambling market is robust and has grown significantly. In FY2022/23, the market's gross gambling revenue (GGR) was R47.2 billion. The South African government received R4.1 billion in gambling taxes and levies during the same financial year, reflecting a 28.8% increase from the previous year's R3.2 billion. This growth highlights the industry's resilience and expansion post-COVID-19.

Online Gambling Laws in Other Countries

Online gambling laws differ from country to country, and here are some of the differences:

• 93 countries are grey jurisdictions that neither authorize nor prohibit online gambling sites.

• Online casinos are banned in 39 countries.

• 32 countries do not permit companies to offer online gambling services within their jurisdictions, but they allow their residents to gamble at offshore online casinos.

• Online gambling is a licensed and regulated activity in 61 countries.

Online Gambling Jurisdictions Worldwide

Online casinos go live after getting a license from an online gambling jurisdiction. However, all gambling jurisdictions are not equally respectable. Highly reputed gambling jurisdictions like Malta and Alderney grant licenses to well-known operators worldwide. Some are not strict about their licensing requirements, which makes them less trustworthy.

Here is a list of the top gambling jurisdictions worldwide:

• Malta

• Isle of Man

• Curacao

• Alderney

• Costa Rica

• Panama

• Antigua & Barbuda

Each jurisdiction has an appointed body that reviews applications for online gambling licenses, grants licenses and regulates all the operators licensed in that jurisdiction. Since they grant licenses to operators of online gambling sites, they go under the name of licensing authorities.

Operators seeking online gambling licenses need to satisfy a set of criteria, which vary from one jurisdiction to the other. However, the following requirements are common to all gambling jurisdictions:

Differences in Online Gambling Laws in Different Countries 

Online gambling laws differ from country to country, and here are some of the differences: 

• 93 countries are grey jurisdictions that neither authorize nor prohibit online gambling sites.

• Online casinos are banned in 39 countries. 

• 32 countries do not permit companies to offer online gambling services within their jurisdictions, but they allow their residents to gamble at offshore online casinos. 

• Online gambling is a licensed and regulated activity in 61 countries. 

Online Gambling Jurisdictions Worldwide

Online casinos go live after getting a license from an online gambling jurisdiction. However, all gambling jurisdictions are not equally respectable. Highly reputed gambling jurisdictions like Malta and Alderney grant licenses to well-known operators worldwide. Some are not strict about their licensing requirements, which makes them less trustworthy. 

Here is a list of the top gambling jurisdictions worldwide: 

• Malta

• Isle of Man

• Curacao

• Alderney

• Costa Rica

• Panama

• Antigua & Barbuda

Each jurisdiction has an appointed body that reviews applications for online gambling licenses, grants licenses, and regulates all the operators licensed in that jurisdiction. Since they grant licenses to operators of online gambling sites, they go under the name of licensing authorities. 

Operators seeking online gambling licenses need to satisfy a set of criteria, which vary from one jurisdiction to the other. However, the following requirements are common to all gambling jurisdictions:

Is Online Gambling Taxed in South Africa?

The short answer is no - winnings from online or land-based betting and gambling are not subject to South African tax. However, this doesn’t apply if you’re a professional gambler, in which case winnings are classified as earnings and are subject to taxation at SARS’ published rates. Even in the case of winnings from offshore online sites, the onus is on the operator to pay tax in the country in which they are licensed. South Africans need only be aware of any foreign currency exchange restrictions.

Legal Online Casinos in South Africa

According to South Africa's laws no online casino operator can legally offer gambling services within the country's borders. However, there is still a wide choice of operators who continue to attract players from South Africa.

Online casino and sports betting sites outside South Africa offer casino gaming with a full range of interactive games. Roulette, blackjack, and slots are on offer, with slots being the most popular. You can also bet on domestic and international sporting fixtures and events, create fantasy teams daily, play online poker and, of course, the Lottery.

In addition, South Africa’s esports sector is busy exploding. Although not recognized as an official sport, (it is classified as a ‘mind sport’) esports is an important part of the gaming landscape. Some schools are going as far as including esports-related programs as part of the curriculum, a clear indication of the place they will soon have in our online catalogue.

If you prefer to play it safe, South Africa has 32 of its own online gambling sites with licenses granted by provincial gambling boards, principally for sports betting. The Western Cape Gambling and Racing Board is the primary regulator.

The casinos you play at must be fully licensed and regulated in a reliable jurisdiction and must employ comprehensive security measures to protect your financial information. An online casino that is audited by a third party will ensure that the casino complies with minimum standards for the industry, which will further protect your rights and the fairness of play.

Social and Community Impacts of Online Gambling

With any social activity, the rule of thumb is to do it in moderation. Still, like any other pursuit, gambling can become an addiction. In South Africa, problem gamblers comprise 2.7% of the population, whilst compulsive gamblers represent 1.5%.

Gambling addiction, which has only recently been recognized as a psychological condition, can lead to risky behavior. Finding any means possible to place a bet, whether with a regulated or unregulated site can have potentially disastrous financial consequences for the individual and their families and loved ones. This, in turn, can have a knock-on effect in the community as gambling addicts turn to crime to fund their ‘habit’.

South Africa already has an indigenous gambling culture, a sports-mad population, and massive unemployment figures, particularly amongst vulnerable youth. What the country also has is high levels of digital literacy and a high market penetration of smartphones, making online gambling accessible for just about anyone who wants to spin the wheel, throw the dice or to ‘tata their chance’ on the lottery.

Some may say that operators are effectively taking advantage of the circumstances in South Africa of poverty, pleasure and proximity. But the flip side of this coin is that there is also massive wealth in South Africa to tap into, with plenty of high-stakes gamblers more than happy to gamble their money.

There are, however, organizations that can assist anyone who believes they may have a gambling problem. In the 18 years it has existed, the National Responsible Gambling Programme (NRGP), a public-private partnership between operators and regulators, has helped an estimated 18,500 gamblers.

If you or someone you know needs help with problem gambling, find out more in our Responsible Gambling Guide.

Advertising Gambling and Betting in South Africa

The advertising of gambling in South Africa is regulated by the same code as gambling itself. It prohibits any false or misleading advertising, or placement or messaging that is intended to target or attract anyone under 18 years of age. It also prohibits any entity that is not licensed from advertising.

Regulations require adverts to include a statement warning of the dangers of compulsive gambling (hence the ‘winners know when to stop’ tagline on all South African gambling ads). Adverts must also include information about the National Responsible Gambling Programme and that gambling is prohibited for those under 18 years of age.

Advertising is not allowed to portray gambling as a means of relieving financial difficulty or to imply it may provide financial security, or be a replacement for employment.

The timing or location of advertising should avoid television programmes targeting under 18s or venues/locations frequented by under 18s, such as schools.

Advertising regulations, like provincial licence terms and conditions, may also vary from province to province.

Playing Safely at A South African Online Casino

While online casinos are banned in South Africa, the emphasis of the law and the responsibility rests with the banks that process payments for online gambling activities and with the operators of the gaming sites.

While casino operators are banned from accepting South African players, individual players have never been targeted and prosecuted for playing at online casinos if they haven't received winnings at SA bank accounts. The online casinos that do operate in South Africa are fully aware of the law and are located far enough from our great country not to be concerned about any legal consequences.

Many online casinos that offer services to South Africans have geared their sites towards this market. Some offer bonus information in Rands, while others may offer deposits and withdrawals in our currency. Besides the important points of security, minimum standards, and fairness mentioned above, South African online casinos offer a range of secure, legal and safe banking methods that are available and accessible for South African players.