• South Africa Prepares To Legalize Mobile and Online Gambling

    11 December 2006



    CAPE TOWN — Online and cellphone gaming will become legal for the first time in SA if a draft amendment bill adopted by the cabinet last week is finally passed into law.

    The South African gambling industry has been frustrated by the length of time it has taken government to come up with regulations to legalise internet gaming.

    Foreign operators, particularly British operators, have been waiting for internet gaming to be legalised so that they can enter the domestic market, while provincial governments have been losing out on an additional source of tax revenue.

    The draft bill proposes a licensing system for both the players and the online gaming websites.

    The manner in which gaming proceeds would be taxed still had to be determined, trade and industry deputy director-general Astrid Ludin said yesterday.

    She said a key challenge in drafting the proposed legislation was to find a way to effectively regulate anything on the internet and how to prevent money-laundering.

    Additional resources would be required for the proposed regulations to be enforced by the National Gambling Board.

    The department also had to look at the economic effect of interactive gambling and attempt to restrict access to a select audience, which would exclude young people.

    A proposed way of limiting the scope of online gambling would be to make it illegal for advertisers to advertise on gambling sites, Ludin said.

    Interactive gambling was outlawed by the National Gambling Act of 2004 because government considered that more time was needed to conduct research into this form of gaming, which has assumed massive proportions worldwide.

    The act gave Trade and Industry Minister Mandisi Mpahlwa two years to draw up regulations to govern internet gambling, which will be regulated in terms of the proposed Gambling Amendment Bill.

    The long-awaited regulations stem from a report compiled by a National Gambling Board committee and the recommendations of a national gambling policy committee consisting of Mpahlwa and the provincial MECs responsible for gambling.

    Research was conducted on how other jurisdictions such as Britain, the US and Australia regulated online gambling.

    Unlike the US, which decided to outlaw internet gambling to prevent money-laundering and funding terrorism, the South African government has decided to allow interactive gambling within a regulated framework. This is consistent with its general approach to gambling.

    Gambling is a concurrent competence between national and provincial governments in terms of the constitution, so provinces were closely involved in framing the regulations.

    The US law prevents credit-card companies from collecting payments for online bets, which effectively closed down a multibillion-dollar-a-year industry.

    Estimates by foreign market-research companies suggest that the global gambling industry — worth more than $8,2bn a year in 2004 — would triple to $25bn a year by 2010.

    Online poker in particular is a major source of online gaming revenue.


    Related News

    • Microgaming expanded its presence in buenos aires

      Gambling News

      Microgaming Expands Presence in Buenos AiresIvan Stefanovic30 December 2021

      Microgaming has increased its presence in Argentina by joining several operators in Buenos Aires. The gambling software provider will offer access to a variety of casino games. The supplier will initially deliver 49 slots to market through its aggregation platform. This includes games such as Thunderstruck II, Break Da Bank Again, Immortal Romance as well as several recent releases such as Links of Ra, Plenty of Presents, Empire Shields, Book of Mrs Claus, Fortune Rush, Golden Hook and more.

      Read full article
    • Cricketsouthafrica

      Gambling News

      HollywoodBets Sponsors South African Team30 September 2015

      Gambling is an extremely complicated topic in South Africa. A part of that has to do with how dynamic some of the political changes have been from one party and administration to another and how wildly their viewpoints can vary. In a move that's sure to shake things up, a South African cricket team has received a sponsor that few would have guessed would happen, but now the realities of the situation are going to unfold, and it's going to be super interesting to see what happens.

      Read full article
    • Southafricanflags

      Gambling News

      South Africa Plans Stronger Online Gambling Enforcement27 July 2015

      For more than 10 years, the topic of regulating online gambling has been debated back and forth. As it stands right now, most forms of online gambling are essentially illegal in the country. Though many politicians are able to point out why it makes sense to regulate the industry, there's still a lot of opposition. Most recently, the National Gaming Board is putting together a strategy to go after unlicensed operators offering their services to those in South Africa. Same Old Story

      Read full article