SABA Urges South Africa to Ban Prediction Markets

The South African Bookmakers Association (SABA) has called on regulators to prohibit unlicensed prediction market platforms, arguing that they present significant risks to sports integrity, consumer protection, anti-money laundering (AML) measures and government tax revenue.

According to the association, prediction market operators should be regulated under the same framework that applies to gambling exchanges. SABA maintains that these platforms should not be permitted to avoid gambling laws by presenting themselves as forecasting or information markets.

In support of its position, the association referenced a report from the International Federation of Horseracing Authorities (IFHA), which described prediction markets as an emerging threat to sports integrity. SABA said the potential risks extend beyond sporting events to areas such as elections, appointments of public officials, regulatory decisions and financial markets, where manipulation may be difficult to detect.

The association also raised concerns about how prediction markets fit within South Africa’s existing gambling legislation. It argued that these platforms function in a similar way to betting exchanges by facilitating peer-to-peer wagering between participants.

SABA further stated that unlicensed prediction market operators create additional challenges for anti-money laundering enforcement and limit regulators’ ability to obtain information or take enforcement action when required.

The association concluded that prediction markets should remain prohibited until a dedicated regulatory framework is introduced. It said such legislation should establish clear rules covering licensing, consumer protection, regulatory oversight, anti-money laundering requirements and taxation.