South Africans Face Asset Seizure and Data Risks When Using Illegal Offshore Gambling Platforms

South Africans who access unlicensed offshore gambling websites face serious legal and financial consequences, including the possible loss of both their deposits and any winnings.

Financial institutions are obligated under the law to seize funds connected to illegal betting activities, meaning users may never recover money earned through these platforms.

According to the Internet Service Providers’ Association (ISPA), national legislation forbids residents from participating in online gambling services that lack a valid domestic licence, even when those services are operated from foreign jurisdictions and remain easily accessible via the internet. The association, which serves as the officially recognised representative body of the country’s internet industry, has warned that offshore gambling operators frequently function without essential consumer protection measures, oversight to ensure fair betting odds, or any meaningful regulatory supervision.

ISPA emphasised that licensed gambling providers within South Africa must comply with strict provincial regulations designed to protect consumers and maintain industry integrity.

In contrast, offshore operators exist beyond the reach of local regulators, leaving South African users vulnerable not only to financial losses but also to potential misuse of their personal and financial information.

Despite the legal risks, online gambling continues to represent a major economic force in the country. Industry estimates suggest that South Africans wager approximately R75 billion each year across both regulated and illegal platforms. While licensed operators contribute to government revenue through taxes and are required to uphold responsible gambling standards, illegal operators do not. This dynamic has raised concerns about money leaving the domestic economy and weakening the effectiveness of existing regulatory systems.

The issue has also raised questions about the responsibility of internet service providers in restricting access to unlawful gambling websites. Authorities have increasingly considered blocking such sites as a preventative measure. However, ISPA has stressed that any blocking initiatives must be grounded in proper legislation. Current laws prohibit internet service providers from monitoring or intercepting user traffic, which limits their ability to implement broad website blocking without violating privacy protections.

ISPA also pointed out that certain technical solutions, such as blocking specific domain names, are relatively affordable and simple to introduce but can be easily bypassed by determined users. More advanced approaches, including deep-packet inspection, would be significantly more expensive to deploy and could slow network performance. These methods also raise serious concerns regarding privacy rights and constitutional safeguards.

The association has stated that it remains open to working with government authorities and industry participants to find a balanced solution. It believes that attempts to limit illegal gambling must carefully balance the goal of protecting consumers with the need to preserve citizens’ fundamental rights to privacy, access to information, and free communication, all within the framework of the country’s democratic principles.

By fLEXI tEAM