SABA asks North West Gambling Board to justify Betmatch exchange licence

Betmatch continues to operate under a North West Gambling Board licence while the South African Bookmakers' Association (SABA) formally asks the regulator to disclose the legal basis for issuing a "Bookmaker (Bet Exchange)" licence. In a statement published on 6 October 2026 and signed by SABA CEO Sean Coleman, the association accepts the licence exists but questions whether the board had power under the National Gambling Act to license a peer-to-peer betting exchange as a bookmaker.

What SABA has asked the North West Gambling Board to produce

SABA has requested the North West Gambling Board to provide the records, legal opinions, evaluations and the exact statutory provisions it relied upon when it introduced its betting exchange licensing framework. Coleman wants the material to identify “precisely which legislative provisions authorised the licensing of a peer-to-peer betting exchange under a bookmaker licence. Until that legal basis is identified, the question remains unanswered,” he said.

SABA's submission frames a narrow legal challenge. The association does not dispute that Betmatch is operated by ZAR Prive (Pty) Ltd or that the company holds a “Bookmaker (Bet Exchange)” licence issued by the North West Gambling Board. SABA's objection is procedural and statutory: a regulator can exercise only the powers conferred by Parliament or a provincial legislature, and SABA contends that rules, licence conditions or administrative choices cannot create those powers where none exist.

Why SABA says an exchange differs from a bookmaker

SABA argues the statutory definition of a bookmaker in the National Gambling Act does not contemplate a betting exchange. The Act defines a bookmaker as “a person who directly or indirectly lays fixed-odds bets or open bets with members of the public or other bookmakers, or takes such bets with other bookmakers.” That text, SABA says, does not mention peer-to-peer exchanges.

A conventional bookmaker takes bets from customers and carries the betting risk itself. By contrast, on an exchange one punter backs an outcome and another punter lays it; the exchange matches the two users and earns commission without being a counterparty to the bet. SABA points to Betmatch's marketing language telling users they can “lay bets with each other” and “effectively act as the bookmaker,” and says those descriptions are difficult to reconcile with a legal claim that every transaction is between the customer and the operator.

"What the betting exchange is effectively doing, is granting a basis and platform for unlicensed members of the public to unlawfully act as bookmakers," said SABA CEO Sean Coleman.

Betmatch’s response and operational safeguards

Betmatch, whose CEO is Nick French, has told media that its North West licence permits betting on uncertain future events, including political outcomes. In an ITWeb report on 28 September 2026, the company said: “Peer-to-peer betting on a contingency is precisely what a Bookmaker Exchange licence authorises, and we already offer markets of this kind lawfully and under supervision on our platform.”

Betmatch has submitted draft prediction market rules to the North West Gambling Board. Those draft rules address: approval of individual betting contracts; prohibited subjects; integrity monitoring; protection of customer funds; position limits; and regulatory control over which events may be offered. The company argues that restricting licensed local exchanges will simply leave South African customers served by offshore platforms and has urged regulators to pursue payment restrictions, geoblocking and removal of offshore gambling apps and adverts targeted at South Africans.

SABA says it shares the concern about unlicensed offshore operators but stresses that the existence of unlawful offshore competitors “cannot supply statutory authority where none exists.”

Regulatory and judicial background in the North West

The licensing powers of the North West Gambling Board have been litigated before. A 2022 case brought by Peermont Global over bingo licences saw the Supreme Court of Appeal find that parts of the board’s notice inviting bingo applications appeared to exceed the North West Gambling Act. Because Peermont had not directly challenged the notice itself, that notice remained in force. The court outcome reflects the legal principle that an administrative decision retains its legal effect unless it is successfully challenged and set aside, a position established in Oudekraal Estates v City of Cape Town and affirmed in MEC for Health, Eastern Cape v Kirland Investments.

National Gambling Board figures cited in SABA’s materials show 11 bookmaker licences issued in the North West in 2024/25, up from five in 2022/23, and 402 bookmaker licences across all nine provincial gambling boards in the same year. Those figures do not separately identify any betting exchange licences.

Immediate impact for punters and next steps

Betmatch retains its licence from the North West Gambling Board and, as SABA acknowledges, nothing in SABA's request alters how customers can bet today. SABA has made a records request rather than obtained a court order, and the North West Gambling Board had not publicly replied to SABA’s statement by the time ITWeb sought comment.

The practical questions now are whether the board will supply the records SABA seeks, whether the board will publish its legal reasoning and whether any interested party will mount a court challenge that asks a court to set aside the licence or the board’s licensing framework. The dispute follows SABA’s position paper of 27 July 2026 on prediction markets and peer-to-peer exchanges and earlier disagreements between SABA and Betmatch over whether existing gambling law covers exchanges.

Operators, regulators and advisers looking for how licensing is being framed should monitor the North West Gambling Board’s response and Betmatch’s draft rules. For the regulatory context on prediction markets and exchanges, see our regulation and news coverage.

What to watch next

1. Whether the North West Gambling Board provides the requested records and cites specific provisions of the National Gambling Act.

2. If a court application follows, whether a court will set aside the licence or leave it in force pending a challenge.

3. Any amendments to provincial licensing notices or national guidance that explicitly address exchanges.

Last updated: 9 October 2026.