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Zeena Rossouw on South Africa’s iGaming dilemma- Part 2

Mercy Mutiria
Written by Mercy Mutiria

Gambling in South Africa has reached historic levels, with the highest turnover ever recorded for digital as well as brick-and-mortar betting. Online betting has been one of the major contributors to the increase. However, the growth has also posed an intricate problem, as opportunity and risk coexist, technology is moving faster than regulation, and the debate over consumer protection is becoming more intense, while illegal betting operators are taking advantage of any available loopholes.

For Zeena Rossouw, these tensions define the moment. The industry must mature without losing control. It must protect players while encouraging sustainable growth. She describes the situation as both promising and fragile. “South Africa’s record R1.5 trillion ($86 billion) gambling turnover shows huge opportunity—but also big challenges. It’s kind of ‘Bittersweet’.”

Record growth, real risks

The country recorded R1.5 trillion ($86 billion) in gambling turnover in the 2024/25 financial year. Online betting contributed significantly to that figure. Rossouw views the number as proof of strong demand. The scale attracts investors and entrepreneurs. New products enter the market rapidly. Digital platforms reach customers across provinces instantly.

However, growth without governance brings consequences. Rossouw warns of social and financial harm. “Without proper governance, this growth can also destroy a delicate ecosystem and cause a bigger problem like gambling addiction, fraud, theft, tax evasion, etc.”

Unchecked expansion threatens long-term stability. Operators, regulators, and communities all feel the impact. The industry must balance ambition with responsibility.

Innovation outpacing regulation

Technology moves faster than policy. Rossouw sees this mismatch daily. Compliance frameworks often lag behind digital change. “Online innovation is advancing at a pace far beyond regulation, leaving compliance gaps and exposing the struggle of laws to keep up, further complicated by political dynamics.”

Operators spend time managing daily demands. Regulators focus on routine oversight. Strategic reforms fall behind. Red tape slows progress further. Updating standards takes years instead of months. Outdated rules weaken enforcement. “For example, the National Gambling Act remains unchanged after 22 years, and even the oldest technical standards date back to 2009—highlighting how outdated frameworks risk undermining effective oversight in a rapidly evolving digital environment.”

Rossouw believes collaboration must improve. Stakeholders already have platforms to engage. They simply need to use them. “It is important that we work together to find the balance and attend conferences, volunteer to sit on committees, and give good input on public commentary documents.”

“The tools, committees, and infrastructure are available to all of us, but we don’t use them!” She adds that Legends provides dedicated support. “The Legends team, as an independent and fully licensed company, has the time to spend on these issues and to support the industry!”

Consumer protection takes centre stage

Public debate around gambling has intensified. Advertising, influencers, and youth exposure dominate headlines. Rossouw places consumer safety above profits. “Protecting consumers, especially youth, must be central to regulation, and it’s the most talked about topic over the past year!”

She argues that responsibility belongs to everyone. Regulation alone cannot solve the problem. Operators must act ethically. “Every business and individual in South Africa has a personal, fiduciary, and legal duty to safeguard the vulnerable—we cannot let profit be the only driver.”

She believes illegal operators worsen risks. They ignore safeguards and avoid accountability. Licensed entities carry the burden of trust. Rossouw supports practical measures for balance. “Stricter advertising standards: Smarter, responsible advertising that avoids glamorising gambling or targeting youth.”

“Enhanced audits and compliance checks: Regular, independent audits to ensure operators meet both regulatory and ethical obligations,” she added. Updating laws to match innovation: Regulation must evolve alongside digital betting technologies, closing the gap between innovation and outdated legislation.

“Community and social responsibility: Licensed entities, including Legends, are obligated to contribute to community service initiatives, employment creation, and social upliftment—and we take this duty seriously.” Collective duty of care: Every business and individual in South Africa has a personal, fiduciary, and legal obligation to protect our youth and vulnerable communities. Money generation cannot be the sole driver of this industry.

“Eliminating illegal operators: Unlicensed operators are the poison in the market, undermining consumer protection and regulatory trust.” She warns that enforcement weaknesses persist. “I am told that convictions in criminal cases are often overturned due to a lack of regulations and loopholes, and the police and prosecutors’ lack of knowledge. Unless we act, it will not change!”

The Ubuntu Foundation approach

Rossouw connects commercial work with social impact. Legends runs the Ubuntu Foundation alongside its consulting services. The foundation focuses on issues such as addiction, mental health, and the protection of youths, as well as supporting projects for the upliftment of communities. The foundation operates with formal accountability structures, and its registration adds to its transparency levels. Rossouw also calls for more participation from the industry since this will add credibility to the issues at hand. She emphasises the importance of responsible gambling and how this can only be achieved through collective ownership.

The threat of offshore operators

Illegal and offshore platforms present another serious risk. They avoid taxes, licensing, and consumer safeguards. Rossouw calls them the most significant threat. “Offshore and illegal operators are the biggest threat to South Africa’s gambling integrity.”

She urges coordinated action. Audits and task forces should increase. Technology must support enforcement. “All industry stakeholders must collaborate through independent audits, stronger task forces, geo-location rules, and upskilling to close loopholes.”

Her testing laboratory background shapes her perspective. She understands how systems get bypassed. Prevention requires technical knowledge. “Coming from a test lab background, I’ve seen firsthand how possible it is to find ways to bypass controls — so leveraging the test labs’ experience and smarter oversight is critical.”

Consistency across regulators matters equally. Fragmented approaches create openings for abuse. Alignment strengthens protection. “Consistency and Collaboration amongst the Provincial regulators, NRCS, and National Gambling Board is KEY! If everyone is on a different path, it leaves the door open to loopholes!”

Taxation and the policy tightrope

Tax debates divide the industry. The National Treasury has considered new levies on online gambling. Some leaders support the idea. Others fear unintended damage. Rossouw advocates caution. “Taxation in the gambling sector must be carefully structured to balance public revenue needs with industry sustainability.”

She opposes blanket measures. “A blanket and unreasonable national tax on online gambling, while well-intentioned, risks unintended consequences.” She also points to international examples. Aggressive taxes pushed operators underground. Jobs disappeared, and revenues fell. “We’ve seen this play out in Kenya, Ghana, Uganda, Italy, and Greece.” She contrasts those outcomes with successful models. Moderate taxes paired with strong enforcement worked better. “There have, however, been successful regimes (UK, France, Spain, Denmark) where taxes were moderate, paired with strong enforcement and clear regulation, ensuring compliance and sustainable growth.”

Rossouw’s message to policymakers remains direct. “Lesson for South Africa: A blanket national tax on online gambling risks breaking the camel’s back.” She proposes smarter structuring. Revenue should support communities and addiction services. Policy should curb illegal gambling, not politicise the market.

Leadership and the road ahead

However, according to Rossouw, the next few years will be significant. The industry needs to modernise its laws and regulations quickly. It requires urgent attention for training and supervision. It needs updated Gaming Acts and technical benchmarks. Independent auditing should become a routine practice. Advertising regulations should become more rigid.

The industry needs special task forces for tracking down illegal operators. There should be more responsible gambling sites. These steps will improve Africa’s competitive advantage. The mission for Rossouw has become personal. The industry has seen decades of growth in terms of capacity development. Her contribution has been part of the journey through committees, training programs, and mentorship. She served on the SABS Technical Committee for over 15 years. She partners with training academies regularly, and she also works with CATHSETA and QCTO initiatives.

Rossouw’s efforts extend beyond regulation. She supports women’s advancement across industries, and giving back defines her leadership style. She hopes her experience creates lasting change. The goal remains a sector that is responsible and innovative. A respected industry benefits everyone.

A delicate balance

Rossouw’s vision combines hope and realism. South Africa has what it takes to lead the continent forward. The market indicates a strong demand and a deep reservoir of talent. However, without improved coordination, risks are accumulating and compounding. Illicit businesses are proliferating, and there is no safety net for customers.

Rossouw’s prescription for improvement is simple: there is a need for collaboration instead of fragmentation. There is a need for new standards and for growth that is guided by responsibility. For Rossouw, success is within reach. There is a need for discipline and a sense of purpose in the industry. The so-called “Bittersweet” moment should be seized as a turning point for progress.

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