The South African Bookmakers Association has called for a ban on prediction markets until comprehensive regulation is in place. The trade body said such platforms circumvent licensing requirements by branding wagers as prediction markets, creating risks to sport integrity and anti-money laundering controls.
The call followed a News24 report on betting activity around the Johannesburg mayoral election via Polymarket, where total stakes exceeded R700,000 ($41,750). SABA argues prediction markets should be treated as betting exchanges and subject to the same licensing standards. Without a dedicated legal framework, the platforms should be considered illegal.
The association cited an April study by the International Federation of Horseracing Authorities, which described prediction markets as a serious challenge to sport integrity. The peer-to-peer model allows users to profit from participants' failures, raising the risk of manipulation. The problem intensifies when markets extend to political elections, legislative decisions and financial events — areas where South Africa lacks monitoring tools.
Offshore operators are a particular concern. They process large transactions across multiple jurisdictions, beyond the reach of South African authorities seeking data or compliance. The platforms do not meet responsible gambling obligations, with no self-exclusion or advertising limits. Revenue flows abroad without tax contribution. SABA concluded that until regulators implement licensing, integrity monitoring, player protection and AML controls, prediction markets should not operate in the country.
