South Africa Moves Steadily Toward Online Gaming Regulation

31 October 2026

The South African regulator has taken a series of clear steps to establish a new regulatory regime for the fast-growing online gambling sector, although the country's long legal ban on digital gaming remains in place at present. Last November, the South African parliament published a long-anticipated notice of intention to introduce a first-ever Remote Gambling Bill aiming to establish a legal basis for a state-approved licensing system. Then in February, the National Gambling Board (NGB) issued a formal notice reiterating the country's existing prohibition on all online gambling -- while simultaneously opening a public consultation on the first-ever draft regulations to enforce the planned regime.

The much-debated Remote Gambling Bill, 2024, which parliament's Portfolio Committee on Trade and Industry introduced on 8 November 2024, aims to validate remote gambling like online casinos and sports betting, while setting uniform standards on web platform practices, player privacy and protection of vulnerable players. "The purpose of the draft bill is to provide a legal basis for the regulation, licensing and control of all remote gambling activities in the Republic," stated the explanatory memorandum, going on to say the bill "provides for the licencing and control of remote gambling activities to protect the republic against the threat of national and trans-national crimes."

The NGB, the country's top gaming regulator, has recommended to the nine provincial licensing authorities that would be responsible to issue remote gambling licences, that all online gaming continues to be illegal. In a formal synopsis delivered February 27th, the board reiterated that offenses under the criminal code apply to online casinos, even once the regulations are implemented. Contents of the synopsis reviewed by TechCentral bullet-pointed that online gaming operators receiving licences by provinces should still:

- not rely on the... Griqua case to presume the legality or illegality of stationless wagering; - take note that these activities remain an offence in terms of sections 21, 23 and 24 of the National Gambling Act; and - immediately cease operations upon receipt of this notice if not already conducting their business pursuant to a recognised licence issued in terms of the National Gambling Act.

A draft of the proposed regulations were published for public feedback, with a comment period open until March 27th. "The main objects of these Regulations are to deal with interactive and remote gambling services; prescribe requirements relating to the licensing of interactive gambling and take steps to regulate the operation of remote gambling," explained the county's privatization firm. The NGB push to get the regulations finalized comes in parallel to a rare shared initiative from the county treasury, which published its own national online gambling tax discussion paper as a counterpart to parliaments' licensing moves.

According to the Treasury, "The draft national online gambling tax discussion paper provides an overview of the gambling industry, considers the current legislative framework and international practices, and proposes a new national online gambling tax." The initially proposed rates put the tax at 22% of the gross gaming revenue (GGR) to be controlled at the national level, in addition to the 8% online tax now levied by provinces, while operators' repayment of losses to customers in the form of "bonuses" escapes taxation.

Elroy Vermeulen, senior analyst for H2 Gambling Capital reported, "A new national 22% tax on GGR is proposed, which adds to the tax collected by provinces at present, which they would be limited to 8% in this proposal. Crucially, marketing expenses (inc bonuses, rewards, black jack drops) are excluded from GGR in the proposed 22% tax."

Overall, the synchronised efforts to upgrade the existing punitive approach of outlawing online gaming suggests the African government is shifting to bring online casinos and bets into the regulated fold. But with the planned bill still at the beginning of the legislative process, regulators' twin tax and licensing consultation still ongoing, and no equivalent updates to the criminal code, the final scope, timelines, and even ultimate carrot/stick balance of incentives to finally legalize the country's market, still remains up in the air.