South African Bookmakers Raise Fresh Concerns Over Betmatch’s Betting Exchange Licence Approval

South African Bookmakers’ Association (SABA) has renewed its challenge to the regulatory basis behind Betmatch’s betting exchange licence.

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The body says it accepts that Betmatch holds a licence issued by the North West Gambling Board, but argues whether the regulator had the legal authority to issue that licence in the first place.

In a Tuesday release, group CEO Sean Coleman called for disclosure of records, legal opinions and legislative provisions used to support the licensing framework. According to SABA, regulators can exercise only the powers granted to them by legislation, meaning the legal basis for a specific licence must be found in law rather than in administrative decisions or licence conditions.

“The issue is not whether the licence exists. The issue is whether the North West Gambling Board had the statutory authority to issue a ‘Bookmaker (Bet Exchange)’ licence,” it stated.

Debate centres on whether betting exchanges fit bookmaker licensing laws

SABA also challenged Betmatch’s reliance on betting provisions contained in the National Gambling Act. The association acknowledged that betting takes place on a betting exchange but argued that this does not automatically mean the operator is carrying on the business of a bookmaker as defined by law.

According to SABA, a traditional bookmaker accepts betting risk and conducts betting for its own account. A betting exchange, by contrast, matches opposing positions between customers, while participants take on the risk and the operator earns commission from transactions.

The association said this distinction is important when deciding whether a bookmaker licence is the correct regulatory vehicle for such activity.

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The group also pointed to marketing used by Betmatch, including statements telling users that they can “lay bets with each other” and “effectively act as the bookmaker”. SABA argued that such descriptions appear difficult to reconcile with claims that every transaction takes place directly between the customer and the operator.

‘This is not about competition’

SABA rejected suggestions that its position is motivated by competition concerns, stating that the legality of a regulatory decision does not depend on who raises objections. The association said its focus is the integrity of the licensing system and ensuring regulators act within the limits of their authority.

The group also noted that it shares concerns about offshore prediction market operators targeting South African customers without local approval.

However, it said the existence of unlicensed offshore activity does not answer questions about the legal basis for Betmatch’s licence.

The association has now called on the North West Gambling Board to identify the legal provisions it relied upon when establishing the betting exchange licensing regime and to disclose the supporting records where possible.

If the authority exists in legislation, SABA said it should be clearly identified. If it does not, the association believes an appropriate legal and regulatory framework should be created before such activities are licensed.

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