Exploring the surge in SA’s online betting space

The trend of online betting has been on the rise in South Africa, with a significant increase in the development and growth of online betting sites. This surge has prompted discussions on whether it is a gamble or a reliable way to make money. To delve deeper into the drivers of this trend and its broader implications, CNBC Africa interviewed Nkoatse Mashamaite, the Chief Compliance Officer at the National Gambling Board. Mashamaite provided insights into the size of the industry, the challenges it faces, and the regulatory efforts being made to curb illegal activities. In South Africa, the National Gambling Board oversees the regulation of various forms of gambling, including casinos, bingo, betting, and limited payout machines commonly found in pubs. While casinos have traditionally been major players in the industry, the rise of online betting has introduced a new dynamic. Mashamaite highlighted that online betting, driven mainly by sports betting, is growing at a significant rate. However, he pointed out that offering casino games online is illegal in South Africa, with severe penalties for those found in violation of the law. Despite the legal restrictions, Mashamaite acknowledged the presence of illegal operators, particularly from European islands, that target South African consumers. These operators often operate through internet cafes in shopping complexes, making it challenging for regulatory authorities to enforce the law. Additionally, Mashamaite raised concerns about the gamblification of gaming, where online betting platforms are increasingly offering casino games under the guise of betting. This blurring of lines between betting and traditional casino games poses a regulatory challenge for authorities at both the provincial and national levels. The interview also touched upon the issue of youth engagement in online sports betting, with Mashamaite expressing concerns about the lure of quick money for young people. He emphasized the need for regulatory control to ensure that all gambling activities operate within legal boundaries. The impact of the COVID-19 pandemic was also discussed, with Mashamaite noting that the restrictions on physical gambling venues had led to a spike in online betting activities. Despite efforts to combat illegal online gambling, including partnerships with banks and online network providers, Mashamaite highlighted the challenges of tracking and confiscating funds from illicit activities. The National Gambling Board has been working to identify and block illegal gambling websites with the support of industry partners like Google Africa. While these efforts have yielded some success, the board continues to face resource constraints in tackling the problem effectively. In conclusion, Mashamaite emphasized the importance of maintaining regulatory integrity in the face of increasing online betting activities. While the industry presents opportunities for growth, it also poses legal challenges that require vigilant oversight and enforcement. The conversation shed light on the complexities of the online betting landscape in South Africa and served as a call to action for stakeholders to collaborate in upholding regulatory standards.