The South African Bookmakers Association (SABA) has called for prediction markets to be treated as illegal. They request this status until the country introduces a dedicated regulatory framework governing the sector.
The industry body argues that prediction markets currently operate without clear legal oversight. Therefore, they believe such markets should not be permitted to expand until legislation establishes licensing, consumer protection, and integrity requirements.
Industry Raises Concerns Over Market Expansion
Prediction markets allow users to place wagers on the outcomes of future events beyond traditional sports betting. These events can include elections, business developments, technology, entertainment, and economic events.
SABA said the growing popularity of these products highlights the need for regulatory intervention. The association pointed to reports of significant trading activity on political events, including Johannesburg’s mayoral race. This, they said, is an example of how prediction markets are expanding into new areas.
Integrity and Consumer Protection in Focus
According to SABA, prediction markets present many of the same integrity risks associated with peer-to-peer betting exchanges. These risks include the potential for insider trading, market manipulation, corruption, money laundering, and consumer harm.
The association said these risks become more complex when markets involve political decisions, government appointments, legislation, or financial events. In these cases, access to non-public information or attempts to influence outcomes could undermine market integrity.
Calls for Dedicated Regulation
SABA maintains that South African law does not currently provide a specific licensing framework for prediction market operators. As a result, there is uncertainty over how the products should be regulated or supervised.
The association is urging lawmakers to establish legislation covering licensing requirements, integrity monitoring, anti-money laundering obligations, consumer safeguards, and taxation. They want this before allowing the sector to operate legally.
The debate represents one of the first major regulatory discussions surrounding prediction markets in Africa. Now, policymakers and industry participants consider how these products should fit within the country’s existing gambling and financial regulatory systems.
