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Illegal online gambling – could your winnings be forfeited?

Illegal online gambling

South Africans placing bets online may be gambling on illegal offshore websites without even realising it. As these operators increasingly target the local market, we are using the Responsible Gambling Month this November to highlight a simple precaution.

Before depositing money, consumers should scroll to the bottom of the website’s homepage and check the operator’s licence details.

Licensed South African bookmakers must display regulatory information by law. This includes the name of the licensed operator, its bookmaker licence details and the provincial gambling authority that issued the licence.

Don’t be fooled by appearances

Illegal gambling websites can look entirely legitimate, offer attractive bonuses, accept deposits in Rands and even have a South African web address. Some also display gambling licences issued in jurisdictions such as Curaçao or Malta. None of this means they are legally authorised to operate in South Africa.

Far from being obscure websites, illegal offshore operators compete directly for South African customers. They use sophisticated marketing, sponsorships and promotional offers to attract players. Therefore, consumers must check before betting, regardless of how legitimate a platform appears.

An international gambling licence does not authorise an operator to offer gambling services in South Africa. A bookmaker must hold the appropriate South African provincial licence. If you can’t identify the licensed operator and the provincial authority that regulates it, that’s a red flag.

Understanding the risks of illegal online gambling

The distinction between legal and illegal gambling goes beyond a technical licensing issue. It has direct implications for consumer protection, including the risk of losing winnings. Under Section 16 of the National Gambling Act, winnings derived from unlawful gambling activities can be declared forfeited to the State through a High Court order.

More than R3 million in unlawful gambling winnings has reportedly been forfeited through court proceedings. This includes approximately R775,000 during the 2025/26 financial year and a further R2.3 million early in 2026/27.

Many people simply don’t realise that winnings from illegal gambling can be forfeited to the state. You could place a bet, win money and then discover that you’re not legally entitled to keep those winnings. That’s a very real risk, and another reason why checking an operator’s licence matters.

Licensed South African bookmakers operate under regulatory oversight. This includes requirements relating to age verification, responsible gambling, player protection and the handling of customer complaints. They also contribute to the country’s tax base, responsible gambling initiatives, corporate social investment and socio-economic development programmes.

Illegal offshore operators fall outside this framework. Consequently, consumers have fewer effective avenues for recourse if they encounter disputes or wish to exercise their right to self-exclusion.

If something goes wrong with a licensed bookmaker, there is a South African regulator you can approach. If you’re gambling with an illegal offshore operator and your winnings aren’t paid, your account is blocked, or you experience other problems, getting assistance can be much more difficult.

The economic impact of illegal gambling

The economic consequences are also substantial. The recently published Consumer Goods Council of South Africa (CGCSA) report on the impact of illicit trade estimates that the gambling sector generates R10.4 billion in direct government revenue annually. It also supports more than 42,000 direct jobs.

However, the report estimates that illegal gambling results in approximately R7.7 billion in direct tax losses annually. It also displaces more than 30,000 direct formal and informal jobs.

We are encouraging consumers to perform three simple checks before depositing money on an online gambling platform:

Look for the registered name of the South African licence holder, its bookmaker licence details and the provincial authority responsible for licensing and regulating it.

A foreign gambling licence is not sufficient. If the South African licensing information is missing, unclear or suspicious, check the operator’s status with the relevant provincial gambling authority. Alternatively, use the National Gambling Board’s Verified Gambling Operators Portal.

A professional-looking website, a .co.za domain or the ability to transact in Rands does not guarantee legitimacy. Don’t deposit money until you’ve independently verified the operator’s licensing status.

These checks provide an important starting point for safer online gambling. In other words, consumers should always check before betting rather than relying on a website’s appearance, promotional offers or claims of legitimacy.

Responsible gambling starts with informed choices

Licence information displayed on a website provides a starting point, not conclusive proof of legitimacy.

Responsible Gambling Month is an opportunity to remind South Africans that consumer protection begins before the first bet is placed. When you gamble with a licensed South African bookmaker, you have the protection of a regulatory system and a regulator you can turn to if something goes wrong. With an illegal offshore operator, those protections may not be available.

Choosing a licensed operator represents only one part of responsible gambling. Consumers should also set spending limits, avoid chasing losses and seek assistance if gambling begins to affect their financial or personal wellbeing.

Ultimately, taking a few moments to check before betting can help consumers avoid significant financial and legal risks. Our message is simple: take a few seconds to check who you’re dealing with before you deposit your money. Know your operator. Bet legally. Gamble responsibly.


Sean Coleman | Chief Executive Officer | South African Bookmakers’ Association (SABA) | mail me |


 

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