SCCG · Vendor Selection

South Africa NGB Advances Procurement for Illegal Online Gambling Site Blocking

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South Africa NGB Advances Procurement for Illegal Online Gambling Site Blocking

TL;DR — South Africa’s NGB has extended its EOI deadline to 4 September 2026 for a provider to monitor, block and track illegal gambling sites. Illegal operators hold 62% of activity and generate over $3.1 billion annually in offshore revenue. ISPA and SABA stress the need for legislative backing and note that blocking alone is not a complete answer.

SCCG Take — The procurement reveals limited existing capacity and highlights enforcement without a licensed online framework. Regulators must weigh technical feasibility against legal and collateral risks before committing resources.

The National Gambling Board is proceeding with its plan to engage a service provider capable of monitoring, blocking, tracking and reporting illegal online gambling websites that target South African consumers. The expression of interest was published on 30 June 2026, amended on 17 July, and now carries a revised closing date of 4 September 2026.

According to reporting by iGaming Business, the illegal market is substantial. Yield Sec research commissioned by the South African Bookmakers’ Association attributes roughly 62% of online gambling activity in the country to unlicensed operators. More than R50 billion ($3.1 billion) in gross gambling revenue flows offshore each year.

Scope of the Proposed Blocking Service

The selected provider would profile illegal sites by country of origin, licence status and ownership. It would block those sites, report them to the NGB for law enforcement referral, and maintain ongoing tracking to counter reappearances under new domains. The NGB grounds the initiative in the National Gambling Act and its duty to assist provincial licensing authorities. Interactive gambling remains illegal; the 2008 National Gambling Amendment Act that would have licensed it never entered into force.

Acting chief executive Lungile Dukwana told parliament in June that no national policy position on interactive gambling has been finalised. The EOI does not commit the board to awarding a contract. It solicits information to shape a future request for proposals, requiring only a company profile, tax clearance where applicable, and relevant certifications from bidders.

Capacity Limits and Industry Counterarguments

Current enforcement resources are modest. The board has allocated two human capital resources and R596,000 for identifying illegal sites in the 2025/26 financial year. Its database lists 90 such websites, all operated by overseas-licensed companies. Of ten sites referred to Google Africa for delisting in 2024/25, none had been removed at the time of a recent ministerial reply. Twenty-three of the ninety later blocked access voluntarily, yet users can still reach them with evasive tools.

The Internet Service Providers’ Association published a position paper opposing administrative blocking orders issued without clear legislation. ISPA chair Sasha Booth-Beharilal stated that any disruption of internet services “should be done only as part of a clear legislative framework that balances the right to communicate against the potential harm of problematic content.” The association warned that domain blocking is easily circumvented, IP blocking risks collateral damage to unrelated sites, and deep packet inspection is associated with autocratic regimes.

SABA chief executive Sean Coleman welcomed the procurement but cautioned that “website blocking, while important, should not be viewed as a silver bullet” because illegal operators can quickly launch mirror sites. The NGB declined further comment while the EOI process remains live.

The initiative underscores the persistent enforcement gap in a jurisdiction where interactive gambling lacks an operational licensing regime. Operators and technology providers will watch whether the eventual RFP produces a technically robust and legally sustainable solution or simply surfaces the practical limits of blocking absent broader regulatory reform.

Reporting: iGaming Business (iGB)

Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.

Steve’s read · SCCG Intelligence

Blocking without licensing is enforcement theater — 62% illicit share proves prohibition doesn't work, only regulation does.

We work across emerging markets where illegal operators thrive in regulatory vacuums. South Africa's procurement reveals the limits of enforcement-only strategy: modest budget, no licensed alternative, and voluntary compliance from offshore brands. Real revenue recovery requires a licensing framework, not just IP blocking.

SCCG angle: Through our network of 545 partners spanning compliance tech, payment solutions and licensing advisors in emerging markets, SCCG helps operators and regulators architect frameworks that channel demand into regulated channels — turning enforcement cost centers into revenue and consumer protection wins.

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