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Gauteng Gambling Board CEO Fired After Misconduct Findings

South Africa’s Gauteng Gambling Board CEO Dismissed for Gross Misconduct – Governance Failures Surface as iGaming Tax Debate Intensifies

Key Takeaways

• Dr Karabo Mbele, CEO of the Gauteng Gambling Board, has been dismissed following a forensic investigation citing gross misconduct and abuse of public resources.
• The report identified interference in funding processes, approval of payments without documentation, and governance failures.
• Chief Financial Officer Oscar Maripane has been suspended over alleged procurement irregularities and non compliance with the Public Finance Management Act.
• Approximately R73m and a further R23m in development funding were reportedly approved outside proper governance procedures.
• The developments come as South Africa’s National Treasury considers a proposed 20% online gaming tax in addition to existing provincial levies.

CEO Dismissed Following Forensic Investigation

Dr Karabo Mbele has been removed from his position as Chief Executive Officer of the Gauteng Gambling Board after a forensic report concluded that he was involved in gross misconduct and abuse of public resources. The decision was announced by Vuyiswa Ramokgopa, Gauteng Member of the Executive Council for Economic Development, Agriculture and Rural Development.

According to the findings, Mbele was implicated in serious governance failures. These included interference in funding adjudication processes, approving funding before governance procedures had been concluded, and authorising payments without supporting documentation. The report also cited failures in compliance and oversight obligations.

Ramokgopa stated that since assuming office six weeks earlier, she had received multiple whistleblower reports alleging misconduct, malfeasance and maladministration at the board. She said the situation made it clear that the existing governance structure could not continue.

The forensic investigation was compiled by an independent legal team led by Advocate William Mokhare SC. Following its publication, the provincial government moved to terminate Mbele’s employment.

Financial Oversight and Procurement Irregularities Under Review

The governance issues identified in the report extend beyond the office of the CEO. Oscar Maripane, the board’s Chief Financial Officer, has been suspended pending the outcome of an internal disciplinary process.

Evidence reportedly links Maripane to procurement irregularities and non compliance with Gauteng’s Public Finance Management Act. The report also referenced breakdowns in internal controls and failures related to statutory reporting obligations.

One of the central concerns involves the allocation of approximately R73m from a Social Development Fund and Corporate Social Investment funding before the board approval process had been completed. Additional scrutiny has focused on a further R23m in Social and Economic Development funding that Mbele allegedly approved in April 2025 without following the correct governance and approval processes.

Ramokgopa described the situation as reflecting broader institutional decay within the Gauteng Gambling Board. She warned that if left unchecked, such failings would erode public trust and compromise the integrity of the entity.

Board Resignations and Administrative Intervention

The leadership crisis follows earlier instability within the regulator. Several members of the Gauteng Gambling Board resigned in December 2025.

In response to the latest findings, an administrator will now be appointed while a new board is established. This temporary administrative structure is intended to stabilise governance and ensure operational continuity while disciplinary processes and institutional reforms proceed.

For operators and stakeholders active in Gauteng, the board is the provincial authority responsible for gambling oversight. Any disruption or restructuring at regulatory level can affect licensing, compliance supervision and funding oversight mechanisms.

Regulatory Scrutiny Intensifies as Online Gambling Grows

The developments occur at a significant moment for South Africa’s gambling market. The sector has experienced continued growth, particularly in online betting activity.

In November, the National Treasury opened a consultation on the introduction of a new national iGaming tax. The proposal outlines a 20% tax on online gaming activity. According to the Treasury, the objective is to raise funds to ensure that external costs associated with gambling are internalised by those that provide and participate in gambling.

The Treasury noted that advances in technology have increased accessibility to online gambling products, allowing users to access services from anywhere at any time. It also stated that online gambling transcends provincial boundaries and cannot be realistically and fully administered at provincial level.

If implemented, the proposed 20% national tax would apply alongside existing provincial gaming taxes, which vary between 6% and 9% depending on location and vertical. This would result in an effective combined rate of between 26% and 29%.

The governance concerns at the Gauteng Gambling Board therefore emerge while national authorities are considering structural tax changes for online gambling. For operators, both regulatory stability and tax policy form part of the broader compliance environment.

Our Assessment

The dismissal of the Gauteng Gambling Board’s CEO and the suspension of its CFO follow a forensic investigation that identified governance failures, irregular funding approvals and procurement concerns. An administrator will oversee the regulator while a new board is formed. These events coincide with a national consultation on a proposed 20% online gaming tax, highlighting a period of regulatory scrutiny and institutional change within South Africa’s gambling sector.