Following a damning Yield Sec report, SABA (The South African Bookmakers Association) warned of a black market pandemic. The report tallied just a 38% channelization rate for the legal gambling market.
Sean Coleman, the chief executive of SABA, has called on gambling regulators to implement geo-blocking and payment restrictions. He aims to combat the large and growing black market in the country.
It follows a new SABA-commissioned analysis by intelligence platform Yield Sec. This found 2,084 illegal operators to be targeting the South African market. It accounts for 62% of GGR in 2023/24.
Under South African law, authorities bar offshore operators from accepting bets from customers. This rule applies regardless of whether the operators hold a license in a foreign jurisdiction.
The report reveals that only three out of the top 10 operators accepting bets from South Africa hold licenses from local regulatory bodies. Among these operators, Hollywoodbets stands out as the only licensed operator in the top three.
Coleman expressed frustration from both the industry and operators regarding the lack of efforts by some regulators to protect their market. He specifically mentioned inefficiencies with the National Gambling Board.
In terms of awareness or advertising by gambling regulators to inform South Africans about the dangers of the illegal market, the SABA CEO said that they are not doing enough.
For instance, he highlighted that current legislation states South African can have their winnings confiscated for betting with unlicensed operators.
Coleman said the trade body, which represents licensed South African bookmakers, has signed a Memorandum of Understanding (MOU) with the Mpumalanga Economic Regulator. This agreement aims to foster collaboration in addressing this issue going forward. It is part of SABA’s broader push to tackle the problem.
Coleman believes that regulators do not fully understand the extent of the pandemic that this market faces regarding illegal operators. He emphasized this point strongly.
