(AsiaGameHub) –   On Monday, South Africa’s National Gambling Board (NGB) responded to concerns about the recently launched Verified Gambling Operators web portal, which consolidates information on licensed gambling operators nationwide.

This follows criticism that certain entries on the portal were marked as “CLOSED,” leading to confusion over whether some operators are still active or operating illegally. There were also claims that some licensed online operators were absent from the register.

Launched earlier this year, the portal is available through the NGB website and compiles data submitted by all nine Provincial Licensing Authorities (PLAs) across the country.

According to acting CEO Lungile Dukwana, it represents South Africa’s first comprehensive effort to display both land-based and certain online gambling licenses in one central location.

“This platform is a crucial step in protecting South Africans from the risks associated with illegal gambling,” Dukwana stated at the time of the portal’s launch.

He encouraged the public to use the tool to verify operators and urged reporting of any suspicious or potentially unlawful gambling activities through either the NGB or the relevant PLA.

“The portal is the first initiative of its kind in South Africa,” the NGB emphasized in its media statement on Monday.

Addressing criticism: “CLOSED” listings and online operators

“Recent commentary,” the NGB noted, questioned the accuracy of the portal shortly after its launch. Some entries were labeled “CLOSED,” particularly for Limited Payout Machine (LPM) sites, raising concerns that these operators might be operating unlawfully or have ceased operations. Others pointed out the apparent absence of certain online gambling providers on the platform.

The NGB clarified that a “CLOSED” status does not necessarily indicate illegal activity. Possible reasons include temporary renovations, a pause in trading, outstanding fees, or contractual disputes between operators and route managers.

The board warned the public and industry stakeholders against jumping to conclusions that such listings reflect regulatory shortcomings.

Regarding online operators, the NGB rejected suggestions that the omission of certain providers was due to the pending Remote Gambling Bill B11‑2024.

It reaffirmed that current regulation stems from the National Gambling Act 2004 and respective provincial statutes rather than draft legislation. The register currently includes licensed bookmakers authorized by provinces to offer online sports betting within the existing legal framework.

The portal gathers data from six provincial systems, which presents practical challenges related to data completeness, consistency, and timeliness.

The NGB acknowledged these limitations and committed to continued collaboration with PLAs to improve data quality and reporting processes. Some “CLOSED” entries currently lack explanatory notes, making compliance assessments more difficult for commercial stakeholders.

The NGB has invited feedback from stakeholders to enhance the portal’s usefulness and accuracy.

South Africa’s tax burden increases

South Africa’s gambling sector is complex. While provincial authorities license and regulate land-based betting and casinos, internet gambling regulation remains contentious and evolving.

A recent Gauteng High Court ruling confirmed that iGaming remains illegal under current national law. It highlighted inconsistencies in provincial enforcement and the widening gap between legislation and digital market realities.

The scrutiny around licensing and compliance coincides with growing financial pressure on South Africa’s gambling industry from proposed tax increases.

Earlier this year, industry representatives warned that planned VAT hikes on gambling services, combined with higher provincial gambling taxes in certain regions, could further strain licensed operators.

Sean Coleman, chief executive officer of the South African Bookmakers Association (SABA), estimated to iGB that, including levies, the tax burden for local operators would rise to 39%. This could make South Africa’s gambling industry among the most heavily taxed globally.

Operators have argued that increased tax burdens may drive consumers toward unlicensed providers. This could undermine regulatory oversight and reduce the competitiveness of the legal market.

The Free Market Foundation (FMF) opposed the tax hike, stating it “would be largely unenforceable against online casinos.”

The spokesperson added that it “would disproportionately affect licensed bookmakers, which already contribute significant taxes to provincial regulators.”