The South African Bookmakers Association (SABA) has called on authorities to prohibit unlicensed prediction market platforms, arguing that they operate outside the country’s gambling framework while posing risks to sports integrity, anti-money laundering (AML) efforts and tax collection.
In a statement released this week, the industry body warned that the rapid expansion of prediction market operators is creating an uneven playing field for licensed bookmakers, who must comply with strict regulatory and tax obligations.
SABA’s latest intervention follows growing public attention on prediction markets in South Africa after reports that more than R700,000 had reportedly been traded on a contract predicting Johannesburg’s next mayor through Polymarket. The association argues that such platforms are effectively offering gambling products without being subject to the same licensing and compliance standards as traditional betting operators.
According to SABA, prediction markets should be regulated as betting exchanges rather than being allowed to operate under the label of forecasting platforms. The association believes this would ensure consistent oversight covering consumer protection, responsible gambling measures, AML controls and taxation.
The trade body also expressed concerns that the current regulatory gap could undermine confidence in regulated betting markets while exposing consumers to operators that fall outside South Africa’s legal framework. It warned that the absence of licensing requirements may also reduce government tax revenues and weaken safeguards designed to prevent financial crime.
The debate comes as South African authorities continue broader efforts to combat illegal offshore gambling. Earlier this month, SABA urged lawmakers to strengthen legislation and support the National Gambling Board’s initiative to block unlicensed gambling websites, arguing that enforcement should focus on illegal operators rather than legitimate licensed businesses.
Prediction markets have become an increasingly contentious issue globally. In the United States, regulators and lawmakers are examining whether event-based contracts offered by platforms such as Polymarket and Kalshi should be treated as financial instruments or gambling products. Similar regulatory questions are now emerging in several jurisdictions as policymakers assess how these markets fit within existing legal frameworks.
South Africa’s gambling sector is already under heightened regulatory scrutiny amid the rapid growth of online betting. Policymakers are considering additional measures, including tax reforms and stronger oversight, while industry representatives continue to argue that excessive regulatory burdens could drive consumers toward unlicensed offshore platforms instead of the regulated market.