(AsiaGameHub) –   The leader of the gambling board in South Africa’s Gauteng province has been dismissed after an investigation uncovered ‘gross misconduct’ and ‘abuse of public resources’.

According to the South African Government News Agency, Vuyiswa Ramokgopa, Gauteng MEC for Economic Development, Agriculture and Rural Development, stated she had no option but to end the employment of Dr Karabo Mbele, Chief Executive Officer of the Gauteng Gambling Board, following the probe.

The report found Mbele linked to ‘serious governance failures’ connected to meddling in funding adjudication processes, approving funding before governance procedures were finalized, authorizing payments without supporting documents, and failing to meet compliance and oversight obligations.

Oscar Maripane, the board’s Chief Financial Officer, has also been suspended pending the outcome of an internal disciplinary process, after evidence was uncovered tying him to procurement irregularities, non-compliance with Gauteng’s Public Finance Management Act, and failures in internal controls and statutory reporting obligations.

‘Broader institutional decay’

Ramokgopa outlined that there is ‘broader institutional decay’ within the Gauteng Gambling Board, which, if left unaddressed, would ‘erode public trust and compromise the entity’s integrity’.

Specific focus was placed on the allocation of around R73m (£3.28m) from a Social Development Fund and Corporate Social Investment (CSI) funding, which was distributed before the board’s approval process was completed.

Further questions have also been raised about Mbele approving an extra R23m (£1.03m) in Social and Economic Development (SED) funding in April 2025 without following required governance and approval processes.

After the release of the forensic report, compiled by an independent legal team led by Advocate William Mokhare SC, Ramokgopa said: “It is deeply worrying that since I took office six weeks ago, I have been flooded with whistleblower reports, many of which asked to stay anonymous, pointing to multiple cases of misconduct, wrongdoing and mismanagement at the gambling board.

“It has become clear to me that the current situation at the Gauteng Gambling Board cannot continue.”

Several members of the Gauteng Gambling Board also resigned in December 2025, and an administrator will now be appointed while a new full board is assembled.

A crucial time for South Africa

These high-profile allegations come at a critical moment for the South African gambling market, as the sector continues to grow alongside broader industry momentum across Africa.

Online betting in particular has seen a sharp surge in activity, which has led South Africa’s Treasury to open a consultation on the plan to create a new iGaming tax to work alongside existing provincial gambling taxes.

First announced in November, the National Treasury has proposed a 20% tax on online gaming activity, with the goal of raising funds to ensure that ‘external costs linked to gambling are covered by those that provide and take part in gambling’.

The proposal stated: “Technological advances have made online gambling more accessible, changed how people gamble and expanded the range of gambling products available, which gamblers can now access from anywhere, at any time. It crosses provincial borders and cannot be realistically and fully managed at a provincial level.”

When combined with provincial tax rates, which range between 6% and 9% depending on location and gambling type, South Africa’s effective overall tax rate will sit between 26% and 29% if the proposal is successfully implemented.