‘Lack of regulation hampers growth of gambling sector’

ONLINE gambling and betting platforms have gained traction during the Covid-19 lockdown, but the lack of government regulation is hampering the sector, according to Sunbet, a subsidiary of Sun International Resorts.

A virtual conference was held this week looking at the legalities of online betting versus online gambling and the lack of a regulatory environment.

Sunbet’s general manager, Nitesh Matai, said gambling in the Western Cape generated revenue of more than R8.7 billion last year, which has since grown exponentially.

Commentators at the conference said the biggest challenge has been the lack of government oversight, which has resulted in the mushrooming of betting cafés which, more often than not, take advantage of players.

The lack of government regulations was allowing a lot of global operators to operate in South Africa.

“They are not paying tax here; they are taking the money away,” said Matai. “There are as many casinos out there as there are people willing to play. There is a poor regulatory environment. The government fails to close down the illegal gambling houses,” he said.

He said the issue was compounded by the banking sector, which could, if willing, keep tabs on the illegal gambling houses, because customers used money within the sector to finance their gambling.

He said the established gambling houses faced pressing restrictions while illegal gambling houses escaped the scrutiny of the law.

Currently, owning, operating and gambling in online casinos is illegal within South Africa’s borders.