Latest news with #NationalGamblingBoard
IOL News
3 days ago
- Business
- IOL News
Trade Minister Parks Tau highlights the rise of 90 illegal online gambling in South Africa
The National Gambling Board has two personnel dealing with the challenges posed by the illegal gambling websites and R596 000 is allocated for the identification of illegal gambling websites. Image: Supplied Trade, Industry and Competition Minister Parks Tau has disclosed that the National Gambling Board (NGB) has recorded at least 90 online gambling websites currently operating illegally in South Africa, all of which are registered and licensed overseas. 'The National Gambling Board did not engage with the operators of the illegal gambling websites, and operators did not block their illegal sites as the National Gambling Board did not engage with them,' he said. Tau revealed this when he was responding to parliamentary questions from Rise Mzansi MP Songezo Zibi, who enquired about the approaches used by the NGB to identify illegal gambling websites and the engagements undertaken by the board with South African network operators to block illegal online gambling websites in the past five financial years, among other things. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Zibi had also wanted to know about the steps taken by NGB with Google Africa to remove illegal gambling websites from their search engine. In his written reply, Tau said the NGB has two personnel who dealt with the challenges posed by the illegal gambling websites. 'The National Gambling Board has allocated financial resources to the extent of R596 000 for the identification of illegal gambling websites. This includes travel costs and legal enforcement forum meetings to be held in the 2025/26 financial year period.' Tau also said the illegal gambling sites were identified by reliance on third-party information. 'When unlawful winnings are confiscated by third parties, the websites through which the illegal online gambling activity has occurred are mentioned in a prescribed National Gambling Board form. 'Other instances of identification of illegal online gambling websites include complaints received from the public via a dedicated NGB email address or the NGB fraud hotline.' Tau explained that the NGB engaged with various stakeholders who are responsible for the provision of the platform for the website to operate in South Africa when blocking illegal gambling websites. He stated that the NGB forwarded 10 websites to Google Africa for removal from the search engine in the financial year ending 2024/25. 'To date, none of the websites have been removed from the search engine, and (c) Yes, the NGB has engaged with Google SA,' Tau said. Meanwhile, Tau confirmed that the National Gambling Board was still without a board of directors. 'The process of selecting members to serve on the National Gambling Board is under way and has not yet been concluded,' he said in response to DA MP Toby Chance's inquiry. Get your news on the go, click here to join the Cape Argus News WhatsApp channel. Cape Argus
IOL News
5 days ago
- Business
- IOL News
90 online gambling websites operating illegally in SA, says Minister Tau
The National Gambling Board has two personnel dealing with the challenges posed by the illegal gambling websites and R596 000 is allocated for the identification of illegal gambling websites. Image: GCIS Trade, Industry and Competition Minister Parks Tau has disclosed that the National Gambling Board (NGB) has recorded at least 90 online gambling websites that are currently operating illegally in South Africa. Tau said the illegal gambling websites are registered and licensed overseas. 'The National Gambling Board did not engage with the operators of the illegal gambling websites, and operators did not block their illegal sites as the National Gambling Board did not engage with them,' he said. Tau revealed this when he was responding to parliamentary questions from Rise Mzansi MP Songezo Zibi, who enquired about the approaches used by the NGB to identify illegal gambling websites and the engagements undertaken by the board with South African network operators to block illegal online gambling websites in the past five financial years, among other things. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Zibi had also wanted to know about the steps taken by NGB with Google Africa to remove illegal gambling websites from their search engine. In his written reply, Tau said the NGB has two personnel who dealt with the challenges posed by the illegal gambling websites. 'The National Gambling Board has allocated financial resources to the extent of R596,000 for the identification of illegal gambling websites. This includes travel costs and legal enforcement forum meetings to be held in the 2025/26 financial year period.' Tau also said the illegal gambling sites were identified by reliance on third-party information. 'When unlawful winnings are confiscated by third parties, the websites through which the illegal online gambling activity has occurred are mentioned in a prescribed National Gambling Board form. 'Other instances of identification of illegal online gambling websites include complaints received from the public via a dedicated NGB email address or the NGB fraud hotline.' He stated that the NGB, upon receipt of such information relating to the gambling website, confirmed with the relevant province whether a gambling operator was registered in South Africa. 'Where the gambling operator is licensed outside South Africa, they are deemed to be an illegal gambling website operator. To further aid in the identification process, the URL of the gambling website is used in the determination process.' Tau explained that the National Gambling engaged with various stakeholders who are responsible for the provision of the platform for the website to operate in South Africa when blocking illegal gambling websites. 'The National Gambling Board does not engage directly with the illegal website operator,' he said. He stated that the NGB forwarded 10 websites to Google Africa for removal from the search engine in the financial year ending 2024/25. 'To date, none of the websites have been removed from the search engine, and (c) Yes, the NGB has engaged with Google SA,' Tau said. Meanwhile, Tau confirmed that the National Gambling Board was still without a board of directors. 'The process of selecting members to serve on the National Gambling Board is under way and has not yet been concluded,' he said in response to DA MP Toby Chance's inquiry. The National Gambling Board has not had members since September 2014. He told Parliament on July 4 that the board appointment was under way and would be taken to the Cabinet for consideration.
IOL News
03-07-2025
- Business
- IOL News
South Africa's spend R1. 1 trillion on gambling: is this a crisis, an economic boon or a social catastrophe?
There are more than 12.3 million South Africans living below the poverty line, with many seeing gambling as their only hope. Image: File FOR the year ended March 2024, South Africans spent a staggering R1.1 trillion on gambling, a figure that dwarfs the budgets of key government departments like health and education. Lotteries, casinos, sports betting, and online gambling are responsible for this spike in betting. While there is a national debate on this, with many pondering whether gambling activities could be defined as an economic lifeline for the poorest South Africans or is it a societal time bomb. The nation currently records a technical official unemployment rate of 32.9% (while economists argue that the actual rate is higher). Inflation has been rampant over the last 5 years and is squeezing household budgets, while fuel prices and runaway transport costs add to the burden. Several South Africans are turning to gambling as a desperate escape from poverty. However, this pathway is accompanied by deep consequences. There are deep costs associated with this choice, not only losing one's money but also the social issues that accompany gambling: The economic impact Could gambling boost GDP, or is it considered a drain on household incomes, where the R1.1 trillion gambling boom is a mystical economic mirage or possibly an economic disaster, and what is gambling's real contribution to the South African economy? - Tax revenue records confirm that the gambling industry contributed R3.5 billion in tax revenue in 2023 (according to the National Gambling Board). - Employment within the sector accounts for over 100 000 jobs depend on casinos, bookmakers, and online platforms. - GDP growth attributed to gambling accounts for 0.5%.of SA's GDP, comparable to the agricultural sector; however, this growth may not be sustainable. The hidden economic drain - This creates a household debt crisis with gamblers supposedly losing R50 billion annually in an industry that observes R1.1 trillion of bets. This pushes many into debt, using credit cards, bank loans and loan sharks (National Credit Regulator) - Opportunity cost: in basic economic terms, translates into money spent on betting that could instead go toward education, small businesses, or savings. - Regressive tax effect: where low-income earners spend 10-20% of their income on gambling vs. 1-2% for high earners (HSRC Study), with casinos observing more visitors at the month end, when workers have been paid. A key insight is that gambling profits are concentrated with a few corporations, while the losses are spread across millions of vulnerable households. The social consequences: the case for gambling addiction destroying families There may be a real social crisis where families are torn apart by gambling addiction. - The rise of "hope gambling": we record more than 12.3 million South Africans living below the poverty line, with many seeing gambling as their only hope. TikTok and Twitter trends glorify "big wins," fueling the illusion of easy money, which is enough to lure the poor and hopeless. It is common for people to have lost their rent or salary, and testimony from a recovering addict who shares, "I lost my salary, my car, and my family. I kept thinking, 'One more bet and I'll fix everything'." - The family fallout with a rise in domestic violence: where 1 in 4 gambling addicts admits to violent outbursts after losses (SADAG Report), often associated with child neglect: kids go hungry as parents chase losses. Suicide rates: gambling-related suicides have tripled since 2020 (SA Depression & Anxiety Group). - The digital gambling epidemic: the ease of online betting apps from well-known gaming houses, targets youth with "free bet" promotions. According to a UNICEF Study, Underage Gambling: 40% of high schoolers have placed a bet. The psychological trap with people chasing "quick money" despite the odds This begs the question: why do people keep gambling despite the odds? - The psychology of "near misses": is a phenomenon where the brain treats near-wins like real wins, triggering dopamine addiction (Stanford Research). There is an illusion of control, with gamblers believing they can "beat the system" with strategies. - Marketing manipulation: we are assaulted with adverts that promise "get rich quick!" but they hide the 99% loss rate. Advertising agencies use celebrities and sports stars to endorse betting, normalising risk. - Government and corporate complicity: there is a lack of regulation in SA concerning spending limits on betting apps kids are being groomed into gambling with video games like Loot Boxes & "Skin Gambling". Policy failures and solutions, can regulation curb the crisis? - Stricter regulations: we could ban credit card betting, following the UK example. There could be an enforcement on loss limits, for example, R1 000/month max for low-income earners. We can consider banning gambling adverts and endorsements, similar to what we have done with tobacco. - Public awareness campaigns: we need to share "truth about gambling" ads (similar to anti-smoking campaigns) and create school programs teaching financial literacy, advocating against gambling. - Support for people with an addiction: we should offer free counselling via NGOs like Gamblers Anonymous SA and encourage self-exclusion registers to block addicts from casinos and betting sites. South Africa's R1.1 trillion gambling habit is not just an economic issue - it's a public health emergency. While the industry profits, families collapse, and the poor get poorer. The government must act before another generation loses to the false promise of "easy money". "You can't gamble out of poverty - but you can gamble your way into it." Advocate Lavan Gopaul Image: File Advocate Lavan Gopaul is the director of Merchant Afrika. ** The views expressed do not necessarily reflect the views of IOL or Independent Media. THE POST
The South African
02-07-2025
- Business
- The South African
THIS province is the BINGO capital of South Africa
South Africans wagered more than R1 trillion last year. Two-thirds of it was spent on betting, mostly online, on things like sports and horse racing. The money spent on betting has been going up and up since around 2021. The turnover from betting now far surpasses casinos, which used to be the most popular way to gamble in this country. Betting on sports and other contingencies is driving this surge. Half the gross revenue from gambling is from online betting, according to National Gambling Board statistics. 'Gambling has transitioned from a pastime enjoyed by small pockets of society to being a commonplace activity,' notes the National Gambling Authority. The Western Cape and Mpumalanga have reported the steepest rises in gambling revenue. The Western Cape has surged past Gauteng, which four years ago was the top revenue earner, to record more than R5 billion more in revenue than Gauteng in the 2024 financial year. Mpumalanga, recorded nearly the same gross revenue as Gauteng, which is surprising given its much smaller population. In fact, in terms of the amount of money spent on gambling, or turnover, Mpumalanga beat both Gauteng and the Western Cape in the 2024 financial year. Betting on sports and contingencies is the hands-down favourite way to wager in Mpumalanga and the Western Cape. It accounts for 96% of the money spent on gambling in Mpumalanga and 84% in the Western Cape. Casinos are still where the gambling money in Gauteng is spent, recording 77% of the turnover for the 2024 financial year, according to the National Gambling Board. More was spent in casinos in KwaZulu-Natal, the Free State and the Eastern Cape. Bingo is popular in North West and the Eastern Cape, where it contributes a quarter of the gambling turnover. But the meteoric rise of betting means it has by far the highest turnover in the country: R761 billion compared with R297 billion for casinos. The government isn't complaining because it collected R4.8 billion from taxes and levies on all that money people spent on gambling in the last financial year. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
03-06-2025
- Business
- IOL News
Understanding the hidden financial risks of gambling
Explore the alarming rise of gambling in South Africa, where over R1 trillion is wagered annually. This article delves into the hidden financial risks, particularly for low-income earners, and highlights the psychological toll of gambling addiction. Image: File picture. South Africans place over R1 trillion in bets annually, with R700 billion spent on sports betting alone. For many, particularly those with limited financial resources, the appeal of a big win can be incredibly tempting. However, the reality is often more complex. Instead of earning easy money, those who indulge in excessive gambling frequently face financial strain. In March, an online betting platform shared a story of someone turning an R4 wager into an astounding R83,701.54. While stories like this grab attention, the rise in online sports betting also brings important considerations. According to the National Gambling Board's 2022/23 gambling statistics, sports betting in South Africa has expanded significantly over the past decade, growing from under 10% of the gambling sector in 2009/10 to over half in 2022/23. What stands out is that 36% of those who gamble do so to pay off debts or cover expenses, according to the 2024 Old Mutual Savings and Investment Monitor. Among low-income earners (those earning between R8,000 and R15,000 per month), this figure rises to 41%, highlighting a concerning trend. Understanding the risks Despite rising costs of living and economic pressures, gambling has gained popularity, particularly due to the widespread use of mobile phones and internet access. This is especially evident among young African men. Advertising from betting companies further fuels this trend, increasing participation within this demographic. This can be risky, particularly for young people and low-income earners, who may see gambling as a way to improve their financial situation. However, losses can add up quickly, sometimes leading to financial stress. In a country already facing high unemployment and economic challenges, it's important to be aware of the potential financial pitfalls of gambling. A game of chance, not strategy Unlike investing, gambling is based purely on luck, yet many believe they can develop a winning approach. The truth is that the house edge ensures that bookmakers maintain a profit over time. For instance, when odds are at -110 on both sides of a bet, a bettor must risk R110 to win R100, meaning even skilled bettors face a statistical disadvantage in the long run. The belief that the system can be beaten can lead to risky financial decisions. Beyond financial losses, gambling can also take a psychological toll. It can lead to stress, anxiety, and even a cycle of chasing previous bets in the hope of recovering losses. A 2016 study by the University of Cape Town's Department of Psychiatry and Mental Health noted a significant association between suicidality and pathological gambling. It found that pathological gamblers were five to ten times more likely to have a history of suicide attempts than non-gamblers. Furthermore, gambling doesn't just affect individuals—it can have ripple effects on families, sometimes resulting in financial strain for loved ones. While gambling is legal, many people don't fully understand the long-term risks involved due to a lack of financial education. For those who feel their gambling habits might be affecting their financial well-being, Manyike advises seeking support. The South African Responsible Gambling Foundation offers free and confidential counselling services. Additionally, professional counsellors who specialise in gambling addiction can provide guidance. Gambling is not a reliable source of income, and without careful management, it can lead to serious financial setbacks. By increasing financial awareness and promoting responsible gambling, we can help people make informed decisions and avoid unnecessary financial risks. * Manyike is the head of financial education at Old Mutual. PERSONAL FINANCE
