The 4H View: Everything you need to know about South Africa

South African gambling sector is large, with the betting segment dominating the market and supported by strong digital penetration. According to the regulator, the National Gambling Board, in 2023-24 betting accounted for around 61% of total industry gross gambling revenue (GGR), compared to 29% for casinos.

At the same time, South Africa had approximately 50.8 million internet users, as of the beginning of 2025, with internet penetration at 78.9% and around 124 million mobile connections, equivalent to roughly 193% of the population. For operators, this creates a strong foundation for online distribution, mobile-first products and scalable customer acquisition. Additionally, as per 2024 South Africa had GDP of $401.1bn, a population of 64m and total gross gambling revenue of $3.7bn.

From the regulatory side, the country’s gambling framework is built on a dual system of national and provincial regulation. At the national level, the law sets the overarching legal framework, including core definitions, general prohibitions, licensing standards, player protection rules and technical requirements for gambling activities, machines, and devices.

At the provincial level, provincial licensing authorities are responsible for implementing that framework in practice by issuing licences, supervising licensed operators, inspecting premises and equipment, and enforcing compliance within their jurisdiction. In other words, the national regime establishes the rules, while the provincial regime applies them through day-to-day licensing and oversight.

Regulations: Licence types

At the national level, the regulatory framework establishes core licensing and compliance rules, while provinces define operational details. National regulation primarily focuses on gambling machines.

• All gambling machines or devices available for public play must be registered and certified as compliant with technical standards.
• Manufacturers must keep records of all machines they acquire, manufacture, sell, or distribute and ensure each device carries permanent identification with the manufacturer’s name, serial number and date of manufacture. Altering or removing this identification is prohibited.
• Limited payout machines (LPMs) must be registered before distribution or use. Their relocation between sites requires prior approval and monitoring by the provincial licensing authority. Route operators must comply with licensed caps, maintain machines, collect revenues and pay provincial levies. Provinces may set stricter caps than national limits.

Provincial licensing authorities license site operators to run LPMs at specific premises and determine operating hours. Where LPMs are classified as incidental use, they must remain secondary to the main business of the premises. Independent site operators with more than five machines must be juristic persons, while licences must be displayed at the entrance and operators must ensure proper control and supervision of all machines.

Additionally, each province establishes its own gambling regulatory regime. Overall, each province issued following types of licences:

• Casino licence.
• Route operator licence (LPM operator).
• Gambling machine site licence (LPM site).
• Bingo licence.
• Bookmaker licence (sports betting).
• Totalisator licence (pari-mutuel betting).
• Racing licence.

Additionally, provinces regulate B2B providers through registrations. The main categories are manufacturers, importers and distributors of gambling devices, and software suppliers. There are also licences for key persons and gambling employees.

Licence requirements

Licence conditions differ depending on the province level. Unified requirements consist of the following:

• Applicant must be a registered African company.
• Business must be limited to gambling activities.
• No state ownership or conflicts of interest are permitted.
• Premises ownership or secure lease required.
• No criminal convictions (fraud, theft, corruption) within 10 years, no public servants or political office holders involved, no insolvency or mental incapacity for key persons.
• Proof of sufficient capital must be provided.
• Systems and equipment must meet national standards (SANS 1718).
• Surveillance and security systems required.
• Licence lapses if operations do not commence within specified amount of days.
• Credit is prohibited.

There are also various casino licence requirements, which share the following conditions:

• Casino licences are issued only via competitive tender/invitation.
• Strong BEE and economic impact requirements.
• Large-scale capital investment expected.

Route operator (LPM) requirements:

• Licences may not exceed the prescribed number of machines, as detailed by each province.
• Mandatory connection to CEMS is required.
• Stake and prize limits apply outside casinos.
• Minimum RTP is prescribed.

Site licence (LPM site) requirements:

• Premises cannot primarily be gambling venue.
• Max of machines per site is prescribed in each province.
• No external gambling advertising is permitted.

Bookmakers’ requirements:

• Authorises fixed-odds betting on sporting events at the licensed premises.
• Board-approved betting system is required.
• Recording of bets must be implemented.
• Approval required for websites/apps.
• FICA compliance.

Totalisator requirements:

• Authorises pari-mutuel betting pools specified in the licence.
• Pool integrity and payout transparency.
• Board approval for commingling (cross-border pools).

Racing licence requirements:

• Licence tied to physical racecourse.
• Applicant must be a racing club.
• Dog racing is prohibited.

B2B requirements:

• Registered providers may not supply devices to unlicensed or unregistered persons in the province.
• Board approval is required for device changes, software changes and certain operational modifications.
• Does not authorise the holder to make machines available for gambling.
• Gambling devices must meet national technical standards and be certified by a licensed testing agent.

Other licences requirements:

• For employees’ and key persons’ review of character, reputation, financial standing, employment history and relevant convictions.
• Key persons must be registered before taking up their roles.
• Interactive gambling employees of nationally licensed operators working in the province must also register locally.

Taxation

Gambling taxation in South Africa also divided by region regulation. There is only B2C land-based operations’ taxation, with B2B and online often being left out of scope.

• Eastern Cape taxation: 3%–10% of GGR, with additional 6% of winnings.
• Free State taxation: casino 7% of GGR, LPM 12% of GGR, bingo 10% of revenue, totalisator 3% of GGR, bookmaker 6% on winnings.
• Gauteng taxation: casino 9% GGR, bingo 12% of revenue, LPM 15% GGR, totalisator and betting 6.5% GGR, bookmaker horseracing 6% withheld from punter winnings.
• Kwazulu-Natal taxation: casino 9.5%-12.5%, GGR dependent on revenue, LPM 15% of GGR, bingo 3% of revenue, bookmaker 6%-6.5% of amount bet and GGR, totalisator 1.5% of bet.
• Limpopo taxation: casino 8.5% of GGR, bingo 8.5% revenue, LPM route operator 10% of GGR, LPM site operator 10% of GGR, totalisator 7% of GBR, undistributed totalisator takings 12%, bookmaker horseracing 6% of winnings, bookmaker sports betting 6.5% of GBR.
• Mpumalanga taxation: casino progressive 5%-10% of GGR depending on revenue bracket, bingo 8% of revenue, LPM route operator 10% of GGR, LPM site operator 10% of GGR, totalisator 2.5% of gross takings plus 10% undistributed takings and 10% unclaimed dividends, bookmaker horseracing 6% of winnings, bookmaker sports betting 6.5% of gross profit.
• North West – no information.
• Northern Cape – no information.
• Western Cape taxation: casino progressive 8%-9% AGR depending on revenue bracket, LPM operator progressive 10%-20% of GGR, bingo 10%-15% of AGR depending on revenue bracket, totalisator 6% of AGR, bookmaker 3% of winnings plus additional 3% betting levy.

As per the general taxation, there are:

• 15% VAT.
• 27% corporate income tax.
• 15%-20% withholding tax.

Responsible gambling

At the national level, South Africa sets baseline responsible gambling requirements that apply across all provinces.

• Minors may not enter designated gambling areas, use gambling machines or devices, conduct or offer gambling activities, or participate in gambling (except amusement games). They may not falsely claim to be 18+. Licensees and employees must not knowingly permit such participation and must take reasonable steps to verify age before allowing access.
• Individuals may self-exclude by submitting a prescribed notice, and courts may order the exclusion of persons showing signs of addictive or compulsive gambling.

The regulator maintains a national register of excluded persons accessible to provincial authorities and all licensees. Licensees and employees must not allow excluded persons to enter gambling areas, use gambling equipment or participate in gambling activities, and must apply measures to verify exclusion status. Licensed premises must provide self-exclusion forms, information on counselling and treatment services, and notices informing patrons of their availability.

• Operators may not extend credit for gambling, directly or through third parties, where prohibited by the Act.
• Licensed premises must display warnings about the risks of compulsive and addictive gambling.

South African provinces also regulate responsible gambling separately. There are different rules and local regimes, though the overall framework is largely consistent across provinces, e.g.

• Prohibition of gambling by persons under 18.
• Mandatory age and identity verification by operators.
• Maintenance and enforcement of exclusion registers for self-excluded or prohibited persons.
• Prohibition on paying winnings to minors or excluded persons.
• Availability of self-exclusion mechanisms for players.
• Mandatory responsible gambling warnings and helpline information in advertising and on premises.
• Display of responsible gambling materials and signage for players.
• Restrictions on advertising targeting minors or vulnerable players.
• Obligations on operators to implement responsible gambling or problem gambling mitigation measures.
• Availability of counselling information or referral mechanisms for problem gambling support.

AML requirements

The national regulation does not establish a separate AML regime for gambling. Instead, it integrates the sector into the framework of the Financial Intelligence Centre Act (FICA).

Under this approach:

• Compliance with FICA is a mandatory condition of every gambling licence.
• Provincial licensing authorities supervise and enforce compliance by licensees with the obligations of accountable institutions under FICA.
• These authorities may conduct investigations and issue offence notices under FICA where it applies to the gambling industry.
• A licence may be suspended or revoked if a licensee breaches FICA obligations.
• Licensing authorities may request probity reports during the licensing process, including reports from the Financial Intelligence Centre.

Overall, the AML framework relies on the application of FICA to gambling operators, provincial supervision of compliance and licensing sanctions for non-compliance.

Marketing

At the national level, advertising rules are primarily designed for land-based gambling and focus on consumer protection and responsible gambling messaging. The national regulation establishes a general framework that restricts misleading promotion and protects minors and vulnerable players.

In particular:

• Advertising must not be false or misleading.
• Advertising of unlawful gambling activities is prohibited.
• Advertising must not target or attract persons under 18.
• Advertising of gambling machines, activities or licensed premises must include a warning against addictive and compulsive gambling.
• Advertising must not encourage or promote removal from the register of excluded persons.
• Gambling may not be advertised as free of charge or at a discounted rate if used as an inducement to gamble contrary to the Act.
• The Minister may exempt certain advertising formats or media where they are not directed at the general public.

At the provincial level, advertising regulation varies significantly across jurisdictions. Each province introduces its own rules and approval procedures, but the regimes generally focus on similar regulatory concerns.

In practice, provincial rules typically address the following issues:

• Mandatory responsible gambling warnings and helpline information in advertising materials.
• Restrictions on advertising locations, including near schools, youth facilities or places predominantly attended by minors.
• Limitations on inducements or promotional offers intended to encourage gambling beyond payment of winnings.
• Restrictions on comparative advertising or claims about odds, prizes or house advantage.
• Rules governing the use of terms such as ‘casino’ or other gambling-related branding.
• Requirements for advertising approval by provincial gambling boards or compliance with provincial licensing conditions.
• Restrictions on external advertising for certain premises, particularly LPM sites.

Market specifics for entry

The South African gambling framework is primarily designed for land-based gambling and is strongly structured around licensing by activity type and place of operation. Separate licences are typically required for different activities such as casinos, bookmakers or totalisators, as well as for specific premises including slot machine sites or betting outlets.

Both land-based and online betting are permitted under bookmaker or totalisator licences. In practice, bookmakers licensed in one province may accept telephone and online bets from residents of other provinces. This makes the market particularly attractive for betting operators, as nationwide demand can be served without maintaining a physical presence in all nine provinces.

However, the regulation of online betting itself remains complex. In most provinces there is no standalone regulatory framework, and online betting is typically permitted either for holders of land-based bookmaker licences or through specific regulatory approvals.

In addition, access to online sports betting licences is limited in some cases. De-facto licences have historically been available only in a limited number of provinces such as Western Cape, Northern Cape and Eastern Cape. In other situations, market entry often requires acquiring an existing licensed business, transferring an existing licence or investing in a locally licensed operator. For foreign operators, this means that mergers and acquisitions or partnerships with local licences may be the most realistic entry strategy.

Although the overall licensing architecture is broadly similar across provinces, important procedural differences remain. Provincial gambling boards apply their own administrative processes and conditions, including requirements such as public hearings for certain licence applications. Licensing timelines typically range from five to 12 months, while application fees and regulatory charges vary between jurisdictions.

In practice, this means that market entry in South Africa does not involve obtaining a single licence under a unified national policy. Instead, operators must navigate a fragmented regulatory landscape and adapt to provincial variations in advertising rules, product scope, compliance obligations and licensing procedures.

The 4H view

Online gambling in South Africa remains unregulated despite long-standing attempts to introduce a licensing framework. The first major step was the National Gambling Amendment Act 2008, which was intended to establish a regulated regime for interactive gambling. However, the relevant provisions required a presidential proclamation to enter into force, and this was never issued.

In the years that followed, the government reconsidered its policy approach. A broader gambling policy review concluded that expanding gambling opportunities, including online casino games, raised concerns about problem gambling, access by minors and the state’s limited capacity to regulate and enforce rules in the online environment. As a result, the interactive gambling framework prepared in 2008 was effectively frozen.

Another structural barrier has been the division of regulatory powers between national and provincial authorities. Ongoing disagreements over whether online licences should be issued at the national level or by provincial regulators have repeatedly complicated legislative reform. At the same time, persistent enforcement challenges against offshore operators and uncertainty regarding the economic impact of online gambling have made policymakers cautious about liberalisation.

More recently, initiatives such as the Remote Gambling Bill 2024 have again raised the possibility of introducing a regulated remote gambling market. However, no comprehensive framework has yet been implemented. As of today, online casinos remain formally prohibited, while online betting on sports and horseracing is partially permitted through provincial licences.

Another practical nuance concerns the B2B segment. Although regulation of suppliers is largely framed around land-based gambling, in practice many provinces require local licensing or approval for B2B providers working with licensed operators. This may apply to software platforms, gaming systems, equipment suppliers and other service providers, meaning that technology vendors may need provincial authorisation even when supporting online betting operations.

The post The 4H View: Everything you need to know about South Africa first appeared on EGR Intel.

 EGR partner 4H Agency delivers its monthly insight into regulated markets’ key requirements. This month, South Africa is in the spotlight
The post The 4H View: Everything you need to know about South Africa first appeared on EGR Intel.