Foreign prediction markets illegal - says gambling association
Sean Coleman, CEO of the South African Bookmakers' Association (SABA), has declared that betting on international prediction markets, such as Polymarket and…
The Full Story
Sean Coleman, CEO of the South African Bookmakers' Association (SABA), has declared that betting on international prediction markets, such as Polymarket and Kalshi, is illegal under South African law. This stark warning follows reports of South Africans betting R1.2 million on the upcoming Johannesburg mayoral race.
Coleman highlighted that although prediction markets are not new, the accessibility for South Africans has intensified. He emphasized concerns about the lack of legislative regulation for these offshore platforms, which do not adhere to local consumer protections or gambling integrity measures.
This regulatory gap is troubling, given the integrity issues that can arise, such as manipulation in betting outcomes. Coleman called for proper oversight if the government opts to regulate these products, pointing out the risks associated with resolving market disputes.
He stressed the need for a clear framework to protect consumers and ensure fairness in betting practices.
Latest Developments
SABA CEO Sean Coleman claims that South Africans betting on international prediction markets is illegal. Coleman reported a R1.2 million wager on the Joburg mayoral race. He emphasised regulatory gaps in South Africa's gambling laws, which fail to cover these offshore betting platforms. Coleman raised concerns about manipulation and integrity related to market resolutions.
Why It Matters
The growing use of offshore prediction markets exposes South Africans to potential exploitation without any local legal protections. The integrity and fairness of these markets could significantly affect the reliability of information and outcomes related to betting. If proper regulations are not implemented, it might lead to a loss of consumer trust and financial losses.