High-Risk Bets: ISPA Sounds Alarm Over Illegal Online Gambling in South Africa

High-Risk Bets: ISPA Sounds Alarm Over Illegal Online Gambling in South Africa

ISPA has urged South Africans to avoid illegal online casinos, warning that unlicensed platforms significantly increase financial and legal risks. Picture Credit: Newsroom

By Aisha Zardad

South Africa – South Africans are being urged to tread carefully when gambling online, with the Internet Service Providers’ Association (ISPA) warning against the use of unlicensed online casinos and sports betting platforms operating outside the country’s regulatory framework.

According to ISPA, these platforms often stack the odds heavily against players, significantly increasing the risk of financial loss. The association also cautioned that local banks are legally required to confiscate winnings derived from unlawful gambling activities.

“Online gambling on the whole is a risky pursuit offering little upside as it hoovers up R75-billion of South Africans’ income annually,” the organisation said. “Gambling illegally magnifies that risk, and South African punters would be well-advised to, at least, keep it local.”

ISPA chair Sasha Booth-Beharilal described the use of unlicensed online gambling platforms as “being extremely reckless”, stressing that consumers expose themselves to unnecessary financial and legal danger.

While the association acknowledged the harm caused by illegal online gambling, it pushed back against calls for internet service providers to block suspect websites. ISPA noted that South African law prohibits ISPs from intercepting or monitoring user traffic, making broad enforcement measures legally and technically complex.

“Unfortunately, the local gambling industry has tried to pin the responsibility for blocking unlicensed international gambling sites on the South African Internet industry,” ISPA said.

Booth-Beharilal added that any content-blocking measures should be introduced through a clear legislative framework that balances the right to communicate with the need to mitigate harm. Such a framework, ISPA argued, must also address the costs of implementation.

Some forms of blocking — such as domain name system (DNS) blocks — are relatively inexpensive but can easily be bypassed by users. More advanced techniques, including deep packet inspection, are harder to evade but come with significant financial costs, potential network slowdowns, and concerns around user privacy.

“South Africans must not have their communications interfered with, and any Internet censorship must carefully balance their rights,” Booth-Beharilal said. ISPA indicated that it remains open to collaborating with policymakers and industry stakeholders on developing a fair and balanced approach to tackling illegal gambling.

The debate comes amid broader legal scrutiny of online gambling in South Africa. In October 2025, the National Gambling Board (NGB) welcomed a ruling by the Supreme Court of Appeal, which found that bookmakers may not offer roulette games online in Gauteng unless they also hold a casino licence.

Although the ruling was specific to Gauteng, the NGB said its implications apply nationally. The court held that, under the Gauteng Gambling Act, it is unlawful for bookmakers to offer fixed-odds bets on the outcome of a casino game, including roulette.

The board said the judgment reaffirmed South Africa’s policy of regulating casinos, betting, limited payout machines, and bingo as distinct forms of gambling. Licensees, it stressed, must operate strictly within the scope of their approved gambling mode.

“South Africa does not permit interactive gambling, while the betting sector is permitted to offer their fixed odds betting through online platforms,” the NGB said, citing section 11 of the National Gambling Act. It added that offering online casino-style games amounts to operating as a casino without the appropriate licence.

However, not everyone agrees with the interpretation. International gambling operator Betway and the South African Responsible Online Gambling Association (SAROGA) have disputed claims that the ruling amounts to a blanket ban on online betting.

“The recent Supreme Court of Appeal ruling was a narrow interpretation of the Gauteng Gambling Act and does not amount to a ban on online betting,” Betway said, adding that it remains committed to working with regulators and government to ensure a responsible and well-regulated betting environment in South Africa.

As regulatory tensions continue, consumers are being reminded that the safest bet remains using locally licensed operators — and understanding the legal and financial risks before placing any wager.

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