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South Africa’s Gambling Licensing Surge Sparks Concerns

South Africa’s gambling industry is facing renewed scrutiny after parliamentary figures revealed that more than 3,000 gambling licences are being issued annually. This raises questions about whether regulators can effectively oversee the sector’s rapid expansion.

Over 3,000 Licences Issued Each Year

A written parliamentary reply to Rise Mzansi MP Makashule Gana confirmed that 3,135 gambling licences were issued during the 2024/2025 financial year. This follows 3,174 licences in 2023/2024 and 3,186 in 2022/2023. The consistent volume of approvals has sparked concern among lawmakers over whether regulatory enforcement is keeping pace with industry growth.

Most of the newly issued licences were linked to limited payout machine (LPM) sites and bookmakers. These continue to drive much of the sector’s expansion.

Provincial Boards Drive Licensing Activity

Licensing authority remains decentralized, with approvals handled by provincial gambling boards. The latest figures show particularly strong activity in key regions. Gauteng issued 753 licences in 2024/2025, while KwaZulu-Natal approved 596 and the Western Cape issued 549.

The figures were released in response to Gana’s inquiry to Trade, Industry and Competition Minister Parks Tau. In it, he questioned the rapid growth of bookmakers and how South Africa’s licensing levels compare with international markets.

Police Data Highlights Enforcement Gaps

Concerns about oversight have been further amplified by a separate parliamentary reply from the Police Minister to Rise Mzansi MP Songezo Zibi. Police recorded 32,938 illegal gambling cases over the past five financial years. The overwhelming majority are linked to land-based operations.

In contrast, only 36 online gambling cases were recorded during the same period. This resulted in 39 arrests and 22 convictions. The Police Minister noted that online enforcement is more difficult because illegal websites frequently disappear or relocate. Investigations can also collapse due to disputes involving search warrants.

Calls Grow for Stronger Coordination and Regulation

The contrast between high licensing volumes and uneven enforcement has fueled debate over whether provincial gambling boards have sufficient resources to maintain consistent standards in consumer protection, responsible gambling, and financial compliance. Lawmakers have warned that oversight capacity may vary widely between provinces. This creates gaps in regulation.

In response, proposals are emerging to strengthen coordination between national and provincial bodies and improve data sharing among regulators. There are also proposals to tighten post-licensing audits and reassess the existing framework. These aim to ensure enforcement remains effective as the industry continues to expand.

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