AI can help curb fraud in SA's booming iGaming sector

AI may be a valuable tool in curbing fraud within South Africa's rapidly expanding iGaming sector, according to Mariia Halaida, the head of business development at iGaming software solutions firm Softswiss. While AI cannot eliminate fraud entirely, it can assist stakeholders in monitoring and detecting threats in real-time, potentially making a substantial difference.

Softswiss has positioned South Africa as Africa's most advanced and regulated gambling market, highlighting a 40.2% year-on-year (YOY) increase in the country's iGaming industry revenue. In FY2023/24, the country's total gambling turnover reached €56.8 billion, with online betting contributing €1.5 billion to that revenue. The majority of betting revenue now comes from mobile channels, reflecting the country's high smartphone penetration rate and the rapid adoption of 5G technology.

The iGaming industry's value was approximately R75 billion in the 2024/25 financial year, but fraud poses a significant threat to this growth. According to data from global identity verification and compliance technology firm Sumsub, iGaming fraud in South Africa more than tripled during the second half of 2025. Halaida explains that AI can help by analyzing large datasets, identifying fraud and money-laundering activity, and alerting organizations to such activity as it happens.

However, Halaida cautions that AI should not be viewed as a silver bullet, as it cannot solve all challenges at once. Instead, it must be applied to identified problems and measured for effectiveness. Softswiss' expansion in the region also depends on the regulatory environment. According to Halaida, SA's regulatory environment has evolved over the past five to ten years, becoming tighter but also clearer and more understandable.

Softswiss prioritizes markets with clear and comprehensible regulations, as this makes compliance easier. Stakeholders in the iGaming industry must wait to see if measures to tighten control over marketing to minors will prove valuable. Mark Walker, director and co-founder of Transformation for Innovation (T4i), suggests that agentic AI fraud detection and mitigation represent a shift from passive, rules-based detection to autonomous, real-time investigation and action.

While agentic AI can effectively combat sophisticated fraud tactics, it also introduces new operational, technical, and financial risks. Softswiss remains confident in its market experience, platform technology, and scalability, asserting that these assets will add value to the African and South African markets. Halaida posits that AI, much like smartphones, will eventually become a common and widely used technology resource.