Online Gambling Legislation South Africa
- Online Gambling Legislation South Africa News
- Online Gambling Legislation South Africa Kenya
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- Online Gambling Legislation South Africa News24
Online Gambling Legislation South Africa News
South Africa has a unique set of gambling laws. For decades, nearly all forms of gambling were completely illegal here. Today, there are legal options to make bets here, yet online gaming options remain limited. Many are now calling for online gambling in South Africa to become legal.
Online Gambling Legislation South Africa Kenya
Today, we’re going to look at South Africa’s current set of laws on the land-based and online gambling industry. We’ll also look at why so many are pushing lawmakers to legalize internet gambling.
Here’s what the law states and how to enjoy casino gaming online. Nine Gambling Boards. South Africa’s nine provinces govern sports gambling activities locally. Each province has a gambling regulator and that means the country’s laws vary depending on where you live. Most online casinos, however, get their licenses from the Western Cape. At this time in 2020, the legislation still states that it’s not legal for online casinos to offer real money gambling to South Africans. And since there are many online gaming sites that DO in fact offer exactly that, there are clearly some well-used loopholes in play.
Evolution of South Africa’s Gambling Laws
The real history of gambling in South Africa dates back hundreds of years. Up until the 20th century, gambling was legal, yet heavily restricted. In 1965, the government cracked down on the industry and declared that all forms of gambling were completely illegal.
As you might expect, this ban created a huge black market for the gambling industry. Small, illegal casinos began opening around the country. By the early 1990s, the government realized they needed to make a change. Lawmakers passed the National Gaming Act in 1996, giving gambling companies a legal avenue to offer their services.
Under these new laws, companies could receive a license from the government to offer casino games, bingo games, and horse racing odds. In 2006, lawmakers here updated the country’s gambling laws. Regulation over the industry got stricter and online gambling in South Africa was deemed illegal.
Today, there are 40 land-based casinos in South Africa. They’re hugely popular with both tourists and locals. Let’s take a quick look at how much revenue this country’s gambling industry is bringing in.
Gambling Is One of South Africa’s Fastest-Growing Industries
For the past 20 years, the popularity of gambling has exploded in South Africa. The rise in legal land-based gambling options has breathed new life into the industry. Revenue earned from gambling in South Africa has never been higher here.
In 2018, the gambling industry here earned more than 30 billion rand ($2,091,000 USD). This money is only from legal gambling establishments. Most analysts feel that when adding the revenue from the unregulated online gambling industry, the figure goes up tremendously.
A recent report states that by 2021, this country’s gambling industry could be worth 35 billion rand. It would represent a massive increase over a very short period of time. Unfortunately, the Department of Trade and Industry (DTI) here is known to be heavily against gambling activities.
For obvious reasons, many are now calling for online gambling in South Africa to become fully legal. It’s clear that millions of people here enjoy wagering online, yet the government is missing out on millions of dollars without regulation. Is this likely to happen anytime soon?
Online Gambling in South Africa Should Be Legal, Says Analysts
Under their current gambling laws, online gambling in South Africa is illegal. Unlike some countries in Africa that choose to simply ignore this industry, lawmakers here have outright banned it. It doesn’t make much sense, considering the huge number of individuals that still choose to bet online here.
It’s well-known that many of the top online gambling sites in Europe currently accept players in South Africa.
The Casino Association of South Africa (CASA) states it is neither for nor against online gambling legalization. Officials in this company recognize that there’s an issue, yet they can’t agree on whether or not making online gambling legal will benefit the country. Themba Ngobese, CEO of CASA, recently commented on the effects of online gambling legalization to the media.
Ngobese feels that lawmakers need to decide on either pursuing legal action against illegal online gambling operators or opening up the industry.
“This will also ensure that consumers are protected and that online operators contribute positively to the economy, as the current land-based licensed casinos do,” he said.
The DTI agree with the first opinion. Heads of this group want to see the government ramp on restrictions on this industry that punish individuals caught gambling online.
South Africa is working on new ways to generate revenue. If online gambling in South Africa becomes legal, the government will likely earn millions of revenue from taxes every single month.
Do you think this country should make online gambling legal? Let us know in the comments section below!
Despite the landmark South African supreme court ruling against Piggs Peak Casino in 2012, a number of international casino operators still persist in marketing their services to players wanting to gamble in South African rands. Whilst there is likely argument – a legally unsound one in fact, that these online casinos aim to cater for non-South African residents who fall under an alternative jurisdiction, the fact that the transactions are taking place using South African currency (and most probably through the South African financial system) make them suspect.
One of the biggest challenges in monitoring and controlling illicit online casino activity – both in South Africa and abroad, is law enforcement and national priority. Developing countries usually face a barrage of social issues including violent crime, rape and entrenched corruption and South Africa is no exception to this. In fact, with the recent bombardment of news about crime in South Africa, it is easy to infer why prosecution in the online gambling space has not been actively pursued, bar the Piggs Peak case. While the legal threat clearly exists, there is yet to be an established case against South African gamblers themselves.
The irony of the situation is that many South Africans find themselves attracted to land-based casinos in the country, largely because of the perceived safety and alternative entertainment opportunities they can find in a relatively secure location. Since these casinos are properly regulated and licensed by the state, players are free from risk of litigation and their winnings may be appropriated to their local bank accounts without any issue. Still, the convenience of gambling online for real money proves very enticing for many South African players, despite the risks which are often perceived not to have any credibility.
Unlike markets likes India, which face similar legislative challenges, the South African online casino market is actually a very lucrative one for the online gaming operators themselves. Along with Australians, South Africans represent some of the highest value online gambling players in the world. Even though funding online casino accounts can sometimes be challenging using South African credit cards or bank accounts, there is no shortage of e-wallet type options like MoneyBookers and NETeller that are easily accessible for local players.
Online Gambling
So with few entry barriers, high value customers and a comparatively low risk of prosecution, international online gaming operators are unlikely to stop targeting the online casino South Africa market. If the South African government were wise, they would be best off implementing and enforcing online gambling regulation as soon as possible. Not only will it serve to control the online gambling and sports betting space, it is sure to generate significant tax revenue from licensing fees, online casino and personal player taxation on winnings. Until then, South African players will likely continue to flout the gambling law on the host of choices they have available to them.
New Online Gambling Legislation
With the shutting down of Piggs Peak to South African players, below is a sample of the more well-established international casinos that cater for online gambling in Rands that have happily taken on the local market demand:
Online Gambling Legislation South Africa News24
If you have any doubt that this is just a small sample, you check out a more comprehensive directory of South African online casinos to see the full extent of what is available. Clearly the demand is there and is being amply met – the South African government had better get a move on with formal regulation with respect to making online casinos in South Africa legal and taxable… there is tons of money on the table for them.