Betting on sports is very popular around the world, and South Africa is no exception. Millions of sports fans enjoy making a wager on their favourite team, and they are able to do it through legal channels. This market is strictly regulated, which allows users to be safe from risks associated with illegal gambling and ensures that the government generates revenues from the operators. It took some time for the official policies to evolve to the point where they are now, but South Africa today is a thriving market for sports betting and it looks like it will continue growing. That’s why it’s interesting to take a step back and examine how South Africa arrived to its present position.
History of Sports Betting in South Africa
Gambling was predominantly an underground activity in South Africa and was official banned, although the ban was not strictly enforced. This changed in 1996, when National Gambling Act attempted to impose rules to this sector and eliminate illegal betting. Under this act, the only form of sports betting available to local residents was horse race betting. Soon thereafter, the government changed its stance and adopted an amended the law in 2004, making it possible for sportsbooks to operate in the country. This brought about a sudden opening of a new channel for legal betting and a large number of offline and online betting shops rushed to serve the South African players. In addition to horse racing, players can now engage in soccer betting, or predict the outcome of tennis, rugby, or cricket matches. They can even increase the winning amount by combining several matches on the same ticket.
Who Regulates Sports Betting in South Africa?
While many countries regulate betting on a central level, in South Africa this responsibility is passed down to individual provinces. To ensure that all participants in the betting market are adhering to the rules, each of the provinces has an administrative body charged with overseeing this type of activity. In practice, this means there are 9 different provincial gambling authorities that have control over parts of the national territory. Operators interested in serving the residents of a specific province have to apply for a license to the appropriate Gambling Board. Thus, some companies may be permitted to provide gambling services in some SA locations but banned from operating in other places. Foreign companies that have no local license are effectively prevented from offering their services in South Africa.
How South African Residents Place Legal Can Bets Online?
The process of making a bet through the legal channels is very simple. First, the player needs to visit one of the more than 30 locally registered sportsbooks and create an account. After this it’s necessary to deposit some money in local currency to the newly opened account. With a membership on a betting site, player can place a wager within seconds from a smartphone or PC. The bet can be for any outcome, including the final score, total number of goals, etc. In case the bet comes through, players’ account is credited with the amount corresponding to the stated odds on the bet. Notably, recreational gambling is not considered a taxable economic activity by the South African authorities, so the players can keep the entire amount after covering the operator’s withdrawal fees. Again, horse racing is an exception as winning bets are taxed 6% for this sport.
How Popular is Online Betting in South Africa?
A large portion of South Africans admit to gambling occasionally, although they have widely different preferences. Lottery remains the most popular form of games of chance, but sports betting is quickly catching up with slot machines and scratch cards. Originally accounting for just a minor part of gambling revenues, thanks to instant availability of online sportsbooks betting is becoming a much more robust source of income for iGaming companies. Since soccer and other sports are immensely popular in this country, it’s not a surprise that fans are taking their interest to the next level and placing bets on matches they follow anyway. In recent years, there is a trend towards mobile betting with a majority of players preferring to place their wagers through a mobile app.
How Is South Africa Dealing with Negative Sides of Betting?
Rapid growth of the sports betting industry has raised some questions about its negative impact on the community. However, since the market is tightly controlled and only vetted and approved operators are allowed to offer sports betting services, instances of fraud or malpractice are less common than in other countries. The websites that have official licenses are held to a high standard and illegal operators are swiftly blocked and punished, but that still doesn’t eliminate all risks. More attention is being paid lately to problematic gambling, with sports betting sites introducing features designed to limit losses and help players stay in control of their finances. It’s difficult to estimate how many people gamble compulsively in South Africa, but given the number of people living in relative poverty there is a potential for significant social harm if further safeguards are not provided.