Sun International has warned that increased government regulation aimed at curbing irresponsible gambling poses a growing risk to its business, as online betting expands rapidly in South Africa and globally. <\/p>\n
The growth of online gambling has intensified public concern about addiction, social harm and consumer protection. In South Africa, the betting industry generated about R1.5\u2011trillion in turnover in financial 2025 \u2014 about R400bn more than the previous period \u2014 as many consumers sought alternative sources of income to cope with the high cost of living. <\/p>\n
Regulators and policymakers have responded by tightening oversight of the sector. Proposed measures include the National Treasury\u2019s suggested 20% gaming tax<\/a> on online bookmakers, the revival of the National Gambling Amendment Bill of 2018 by the National Gambling Board, and planned changes by the Advertising<\/a> Regulatory Board (ARB) to its self\u2011regulatory Gambling Advertising Code. <\/p>\n The revised advertising code would further restrict marketing to minors and introduce new rules on the timing and placement of gambling adverts across media platforms. Internationally, several countries have already imposed outright bans on gambling advertising. <\/p>\n Sun International said in its latest annual report that the proposed regulatory changes could have a material impact on the group, warning that some measures \u201cmay be impractical and\/or onerous\u201d for its operations. The resorts, hotels and casino group owns the Carnival City, Meropa and Boardwalk casinos and operates the Sunbet online betting platform. <\/p>\n \u201cRegulatory uncertainty remains elevated. However, proactive engagement and compliance readiness are expected to mitigate potential adverse impacts,\u201d the company said. <\/p>\n The group noted that concerns about addiction, particularly among vulnerable groups, and \u201cinfluencer-driven behaviour are prompting stricter, responsible gambling measures\u201d. <\/p>\n It also flagged increasing regulatory fragmentation and the risk of higher taxes, which could add to compliance costs and encourage players to move to unregulated markets. <\/p>\n \u201cThe proliferation of illegal gaming sites remains a key concern,\u201d Sun International said, adding that regulators continue to review gaming licences and mull new legislation. <\/p>\n Illegal gambling continues to pose significant risks to consumers, including financial loss, lack of recourse in disputes, and exposure to fraudulent practices<\/p>\n \u2014 \u00a0National Gambling Board<\/p><\/blockquote>\n In April the National Gambling Board launched an online platform that lists all licensed and legal gambling operators in South Africa. The initiative forms part of efforts to combat illegal and offshore gambling while promoting responsible gambling practices and consumer protection. <\/p>\n \u201cIllegal gambling continues to pose significant risks to consumers, including financial loss, lack of recourse in disputes, and exposure to fraudulent practices,\u201d the board said, adding that the verification tool aims to strengthen public trust in the regulated gambling sector.<\/p>\n Sun International believes it can help shape future regulation through active engagement with policymakers. <\/p>\n It is in the process of forming an online gaming industry council with Betway, which will represent the sector on issues such as regulation, responsible gambling and industry sustainability. <\/p>\n Over the past five years, gambling activity has steadily shifted from land\u2011based formats \u2014 including casinos, bingo, limited\u2011payout machines, sports betting and horse racing \u2014 to online platforms. While this trend was underway before the Covid lockdowns, the pandemic accelerated the move to digital betting. <\/p>\n According to Sun International, online betting now accounts for about 60% of the market. Operators offer a broad range of online products, from lottery and casino games to sports betting, with soccer and horse racing among the most popular. <\/p>\n This shift, combined with new market entrants and changing consumer preferences, is putting pressure on traditional gambling formats. According to Sun International, its total land\u2011based casino gross gambling revenue declined by 4.6% in 2025, while segments such as limited\u2011payout machines have been in longer\u2011term contraction. <\/p>\n \u201cFailure to respond to these changes could lead to a loss of market share, weaker revenues and profitability, and reputational and shareholder value impacts,\u201d Sun International said. <\/p>\n The group is exploring opportunities to license historical horse racing operators through its limited\u2011payout machine route network. <\/p>\n Its online betting business Sunbet continues to show strong growth. In financial 2025, Sunbet\u2019s income rose 75.9% to R2.1bn, driven by increased customer engagement and higher deposits. Income in the second half of the year jumped 79.8% from the prior period. <\/p>\n Broader concern about the social impact of online gambling is also growing. Jason Sive, CEO of Mobicred and e-commerce executive at RCS, said the rapid expansion of online gaming was a \u201cgrave concern\u201d, particularly where financially vulnerable consumers are involved. <\/p>\n \u201cWe know how many of our customers are gambling and gaming monthly, and most of the time, those are the customers who cannot afford to be,\u201d Sive said. <\/p>\n\n