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Sports Betting Opportunity: Mpumalanga Economic Regulator Invites Proposals for Bookmaker Licences
Introduction
The Mpumalanga Economic Regulator has published a notice that it intends to invite proposals for Bookmaker Licences in terms of a Request For Proposals For Bookmaker Licences. It extends to online and land-based betting, including sports betting.
The purpose of the RFP is to invite proposals for bookmaker licences and to indicate the process, evaluation criteria and other requirements for bookmaker licence applications, including the standard bookmaker licence conditions.
Interested parties may request clarifications on the RFP until 29 May 2025. Requests for clarification should be directed to the CEO of the Regulator at ceo@mer.org.za.
The RFP may be obtained from the office of the Mpumalanga Economic Regulator. Alternatively, do not hesitate to contact us if you would like us to email you a copy of the RFP.
On 11 April 2025, the Mpumalanga Economic Regulator published a notice that it intends to invite proposals for Bookmaker Licences in terms of a Request For Proposals For Bookmaker Licences (RFP).
The RFP extends to online and land-based betting facilities, including in respect of sports betting.
There is no limit on the number of proposals that may be submitted, but only 20 licences will be available to be issued and a maximum of 80 bookmaker licences may be operational in the Mpumalanga province at the end of this process. The Regulator may, however, limit the number of licences if it considers it appropriate to do so on the basis of the quality of the proposals it receives.
A high level overview of the RFP is set out below.
Minimum requirements
The requirements for bookmaker licences include:
• Contribution of 0.1% of the bookmaker’s annual Gross Gambling Revenue to the National Responsible Gambling Programme
• Contribution of 1% of the bookmaker’s annual Gross Gambling Revenue to corporate social investment (CSI) in Mpumalanga
• Offices must be based in Mpumalanga
• Acceptance of standard bookmaker licence conditions
• Bookmaker must commence operations within 12 months of the grant of the application
Evaluation criteria
The RFP sets out the evaluation criteria, including an Evaluation Matrix in Annexure B. The criteria include –
• Investment details, including total investment, jobs and B-BBEE investment
• Funding, including the funders’ details, funding and financing commitments, and measures to protect local (i.e., Mpumalanga-specific) BEE ownership
• Financial viability, including projections and market analysis
• Ownership, including details of the board, senior management and any proposed management companies, and their bookmaker / gambling experience
• Employment opportunities, including sustainable employment creation and maximising job opportunities in Mpumalanga, promotion of B-BBEE, and employment of disabled persons
• Skills development, including proposed training, bursaries and B-BBEE promotion strategies
• Enterprise and socio-economic development contributions, including enterprise and local supplier development contributions, CSI, and participation in responsible gambling initiatives over and above the required contribution
Many of these details must be split between local (Mpumalanga-specific) and non-local information.
Applicants should be aware that any representations and undertakings made during the selection and licensing process may be included as licence conditions.
Selection process and submission requirements
The selection of applicants for bookmaker licences will be done in phases.
| Phase 1 | Submission of proposals | The Regulator will announce a date, after 29 May, by which all interested parties must submit their proposals for a bookmaker licence. Proposals must include extensive information, as detailed in the RFP. | No Fee |
| Phase 2 | Evaluation of proposals | The Regulator will review each proposal to ensure compliance with the minimum requirements, using the evaluation matrix in Annexure B of the RFP, and may perform preliminary background investigations. | |
| Phase 3 | Selection of applicants | The Regulator will consider the results of Phase 2 and select applicants who may submit formal applications. The Regulator will determine and announce the dates for applications in due course. | |
| Phase 4 | Submission of applications | Selected applicants may submit applications, comprising extensive information and documents. The non-confidential version will be available for public inspection and objections, and a hearing may be held. | Application fee: R5,000 |
| Phase 5 | Detailed probity investigation | The Regulator will conduct a detailed probity investigation involving extensive checks to ensure the applicant is suitable to be licensed as a bookmaker. | Initial investigation deposit: R25,000 |
| Phase 6 | Granting or denial of application | The Regulator will inform the applicant of its decision to grant or deny the application. The Regulator may also refer the process back to any of the preceding phases. | Annual licence fees: R2,500 per annum |
Key information
• Any queries regarding the Invitation for proposals may be directed to the CEO of the Regulator on 013 750 8000 or ceo@mer.org.za
• Interested parties may request clarifications on the RFP until 29 May 2025. Requests for clarification should be directed to the CEO of the Regulator at ceo@mer.org.za. All requests for clarification and responses thereto will be made available to all other applicants
• Proposals and applications must be submitted via licensing@mer.org.za
• All payments must be made by EFT and must clear in the Regulator’s bank account at least 3 days before the relevant closing date
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