Running an online casino in South Africa requires a detailed understanding of the legalities and regulations existing in the country.
Otherwise, it can lead to hefty fines, legal battles, and reputational damage. Our experts have curated this guide to help you navigate the complex legal framework and acquire the licenses necessary for an online casino set up in South Africa. Take a look.
Is online casinos legal in South Africa?
Technically online casinos are illegal in South Africa but the visionary iGaming operators have found innovative ways to offer casino gaming experience while complying with the legalities and regulations.
As per the National Gambling Act (amended in 2008), all forms of interactive online betting are illegal within the country’s borders except for online sports betting. Considering this, operators rebranded casino games as ‘numbers-style draw’ games to comply with existing sports betting regulations. These games emulate classic casino experiences like roulette, slots, and crash games.
However, the ‘numbers-style draw’ games are offered only via licensed iGaming platforms and considered as ‘betting events’, which makes the platforms align with the sports betting laws in the country.
Overview of the South African iGaming market
Despite such restrictions on online casinos in South Africa, the country’s iGaming market continued to grow at a rapid pace. At the end of FY2022/23, the South African iGaming industry made a Gross gaming revenue (GGR) of USD 257.15 billion, which is 36.9% more than the previous year. In this total revenue, casinos alone generate USD 94.27 billion GGR.
The projected market value is expected to become approximately USD 365.12 billion, in which online casinos will contribute USD 133.75 billion, by 2027.
This data indicates a favorable condition for iGaming operators to expand to the South African market.
Players from South Africa often participate in licensed international online casino platforms. Casino and iGaming software providers rebrand top online casino games in compliance with the sports betting laws in place to help you get the required licenses.
Gambling legalities and regulations in South Africa
The gambling landscape in South Africa is quite complex. The country is divided into nine provinces with provisional gambling boards (PGBs) to offer licences to operators under the National Gambling Act. Depending on your region of operation, the concerned province and PGB offer licenses.
Types of gambling allowed in South Africa
Players can participate in the following types of gambling in South Africa:
- Land based online casino: Land based casinos are legal in South Africa. The operators can give access to online live components of such casinos for maximum player retention.
- Online casino gaming: Any form of interactive online casino gaming is restricted inside the country. However, online casinos still exist, offering slots, table games, and more while rebranding them to fit the laws. Players also participate in overseas online casinos, but no one has ever been convicted of it.
- Sports betting: South Africans can legally place bets on different sports events and horse racing.
- Daily fantasy sports: The laws allow players to participate in fantasy sports leagues.
- Online poker: Virtual poker rooms are legally available for poker enthusiasts.
- Lotteries: Players can participate in lotteries online.
Legal framework
Here is how the legal framework of the online gambling industry in South Africa evolved through the past two decades:
- In 1994, the newly elected democratic government started exploring the legalization of other forms of gambling.
- The National Gambling Act was introduced in 1996. It legalized land-based casinos, lotteries, and other forms of gambling. The National Gambling Board was established to regulate the industry.
- In 2004, the laws of 1996 were replaced by the National Gambling Act of 2004. It further extended the scope of legal gambling in South Africa. It legalized online gambling, which was previously prohibited. Despite legalization, the framework remained ambiguous as it didn’t explicitly mention online casinos, resulting in debates over its legality.
- The Gambling Amendment Act was introduced in 2008. It aimed to regulate interactive gambling, including online betting. It did not legalize online betting but provided a regulatory framework for the sports betting industry.
- In 2016, the South African government proposed a new bill to legalize and regulate online betting. But the bill is not yet considered as a law.
- At present, the National Gambling Act of 2004 governs the legal framework for online betting. The National Gambling Board regulates the iGaming industry, while the National Gambling Regulator enforces regulations. The National Gambling Policy Council advises the government on gambling-related policy matters.
Licensing and taxation
Operators must adhere to licensing requirements for legal operation in specific regions. The government implements taxes on gambling revenue. And penalties exist for unauthorized operators.
Best Payment Methods for Online Casinos in South Africa
Online casinos in South Africa use certain payment methods that are reliable for players and facilitate safe transactions. White label casino software solutions come with these payment methods. Whether it’s an international or regional online casino adapted to follow sports betting laws, the following payment methods should be integrated:
Credit and debit cards
Credit and debit cards (e.g., Visa and Mastercard) are widely accepted in South Africa. Cards are convenient for the user and enable quick transactions.
E-wallets
E-wallets like Skrill, EcoPayz, and Neteller are popular in South Africa. Players prefer e-wallets for secure and fast deposits and withdrawals.
Bank transfers (EFT)
Electronic Funds Transfers (EFTs) are commonly used in South Africa to transact on an online casino. Instant EFT services by Payfast, SID, and EasyEFT offer quick approval.
Cryptocurrencies
Some online casinos accept cryptocurrencies like Bitcoin, Ethereum, etc. Digital coins facilitate anonymous cross-border transactions, which makes it an ideal choice for players from countries like South Africa that restrict online casinos. Considering that white label crypto casino solutions are becoming the first preference of the operators to expand to the South African market.
Crypto Casinos in South Africa
South Africa is crypto-friendly, with little regulation around digital assets. The National Gambling Act governs online casinos, and licensed sites are legal, including crypto casinos. Due to the massive popularity of cryptocurrencies, top operators in South Africa offer lucrative bonuses to attract players. For example,
- BC. Game offers a 300% bonus up to $20,000 (tiered).
- Cloudbet features a 100% match up to 5 BTC.
- 7Bit matches 325% up to 5 BTC + 250 Free Spins.
Set up your online casino in South Africa
Now you know the legalities and regulations related to online casinos set up in South Africa. The next step is to find your target audience, segment potential customers, and contact a provider for engaging white label casino games modified to comply with the existing gambling legislation. Then, customize the white label casino software solution according to your brand identity and finally, launch your online casino in South Africa!
