SA Licensed Bookmakers Push Banks to Block Offshore Gambling Payments
South Africa’s licensed sports betting industry is calling for tougher action from banks and payment firms, arguing that a large share of online wagering activity is happening through unlicensed offshore gambling sites. In a submission supported by a new industry-commissioned study, bookmakers say the payments ecosystem—not just the websites—has become a key enabler of what they describe as illegal activity.
The South African Bookmakers Association (Saba) says it commissioned global gaming research firm YieldSec to examine online gambling trends. According to the report, operators without local licences are responsible for about 62% of online gambling activity in the country, pulling out more than R50-billion in gross gambling revenue offshore every year.
Saba also estimates that roughly 16 million South Africans used these platforms within the past year. The association argues this scale means consumers are being exposed to betting that sits outside the regulated framework—and that the harm goes beyond taxation and licensing.
“The majority of online gambling activity in South Africa is still taking place outside the regulated system,” said Sean Coleman, CEO of Saba, in a statement. He added that this leaves many players exposed to operators who provide no local taxes and no meaningful consumer protections, while operating outside South African law.
Focus keyword: offshore online gambling sites
Under the National Gambling Act, offering or participating in gambling services without a valid South African licence is unlawful. Even so, Saba claims offshore operators continue to target local players, including through betting brands that rely on licences issued in other jurisdictions.
Those jurisdictions, according to Saba’s statement, include places such as Curaçao, Malta, Gibraltar, and the Philippines—licensing arrangements that the local industry says have no legal standing for South Africa’s regulated market.
Coleman’s message is that the system is functioning like a two-way pipeline. Players place bets on foreign websites, and the financial services industry processes those transactions, effectively transferring funds from a South African account to an offshore operator.
Saba’s argument is direct: banks and payment providers are not merely serving customers—they are helping to move money into an environment where the underlying gambling activity is allegedly illegal. Coleman said each bet placed by a South African resident on a foreign platform constitutes unlawful gambling activity, and that banks are part of the mechanism that makes this possible.
“South African banks and credit card institutions serve as a conduit between the online gambler’s banking account and the foreign-based gambling website operator’s banking account,” Coleman said. “Without this, the unlawful gambling transaction would not be able to occur.”
This framing places significant responsibility on financial institutions, third-party payment processors, and credit card networks. Rather than limiting action to enforcement against websites alone, Saba wants payment channels tightened to prevent local money from reaching offshore platforms.
Why the industry is pushing for payment blocks
Saba warned that consumers who use unlicensed offshore online gambling sites face risks on multiple fronts. One concern is that winnings from unlawful gambling are not protected in the same way as those linked to regulated operators. Coleman cautioned that winnings could be confiscated under South African law.
He also suggested that players may face legal exposure for participating in illegal gambling activities. While the statement focused heavily on the scale of offshore use, it also made clear that individuals could become targets for enforcement if they’re found to be actively taking part.
Saba also said many users may not fully understand the legal status of the platforms they engage with. Coleman argued that because offshore brands operate online and often market aggressively, players can mistakenly assume they are dealing with legitimate operators.
“There is no guarantee that winnings will be paid out, and players have no recourse if they are defrauded or exploited,” Coleman said. The association’s view is that outside the regulated system, consumer protections and dispute mechanisms are limited or absent.
The report, Saba said, was commissioned specifically to support the association’s stance that the market is being distorted. Saba represents licensed bookmakers who already operate under South Africa’s licensing rules, and it has a commercial interest in reducing competition from offshore players who, according to the report, contribute to large-scale revenue leakage.
What could happen next
Saba’s call is essentially for banks and payment providers to treat transactions to offshore gambling platforms differently—potentially by restricting or blocking payments linked to operators that do not hold valid South African licences.
If financial institutions respond to this pressure, it could change how quickly offshore sites can monetise local users, particularly those relying on card processing and electronic transfers. For consumers, the shift could mean fewer accessible payment routes and a higher barrier to betting on sites that are not authorised locally.
For now, Saba is urging action based on the scale it claims the offshore market has reached, citing both participation numbers and the estimated annual value diverted offshore. The association’s position is that enforcement must include the money trail, not just the website landing page.
The latest warning from Saba is that South Africa’s licensed betting industry believes the “unlicensed problem” is growing—and that banks and payment providers are being asked to help cut off the flow of funds to offshore online gambling sites operating outside local law.