Online Gambling South Africa Illegal

1. Is Online Gambling Legal In South Africa 2020
2. Illegal Gambling Bust
3. Online Gambling South Africa Illegal Laws

Accessing Is Online Gambling Legal In South Africathe services from Great Britain ('GB') MT SecureTrade Limited is licensed and regulated by the Gambling Commission and holds a Remote Casino Operating License number 39575. The rise in illegal gambling in South Africa 1 year ago Samuel. Post Views: 484. During the 1970s casinos began to spring up around the country and by the mid-90s it was estimated that there were well over 2,000 establishments operating illegally all across South Africa. But with the end of apartheid there was a sudden sea change in the law. In 2011, there was an update made in the gambling laws of South Africa, which says that online gambling is illegal within the borders of the country. Even though there are certain online casinos that accept native South African players, from a legal point of. So, the truth is that although online casino gambling remains illegal within South Africa, there are many operators outside of its borders which allow South Africans to play casino games online. Not only do these operators from foreign countries welcome South African players but many of them offer bonuses, rewards and special promotions in Rands. The #1 South Africa Online Casinos for 2021 - We rank the best online casino sites. Get a top bonus up to R12,000 & FREE play games here today!

There is no denying that the growth and popularity of online gambling within South Africa has exploded in recent years, and rightfully so, with Africa being such a large mobile centric market it was only a matter of time before established, predominantly land based casino’s turned their attention to offering convenient, fast and instant online gambling services to the South African players. The result of this shift has meant a flurry of top gaming portals and services from which local players can now pick and choose.

The question however on many players minds still remains:

“Is online gambling illegal in South Africa?”.

Our team here at Slotzar pride themselves on providing the most up to date and accurate information pertaining to the world of online gambling, so we scoured the net in search of the answers to put your mind at ease.

South African Gambling Regulations

First things first, let’s start at the very top, It’s good for you to know exactly who regulates the Gambling industry in South Africa. In South Africa we have in place a board known as the National Gambling board or NGB.

The NGB was started off the back of the passing of the 1996 National Gambling Act and really their main responsibility is to oversee the regulation and integrity of the gambling industry within South Africa, this includes the acts of evaluating and issuing of national licenses, compliance monitoring of these licenses, and the monitoring and detection of any unlicensed gambling activity. Now that we know who regulates things from a South African gambling perspective, let’s take a small step back to give you a bit more context.

South Africa’s Gambling History

The best way to understand something is to go back to the very beginning right?. In South Africa this goes as far back as 1673, when gambling was originally restricted by the Dutch settlers. You’ll be pleased to know that things have progressed since then, slightly murky progressions but progression none the less. In 1965 things became somewhat more formal, the department of trade and industry officially released what is known as The Gambling Act of 1965, this piece of legislation pretty much banned all forms of gambling except for betting on horse racing, which is considered, and still considered to this day to be classified as a sport.

1970 arrived and this was really a defining year for gambling in South Africa, land based casinos suddenly started operating on the down low in the bantustans (also then known locally as the homelands), this included Bophuthatswana, Ciskei, Transkei and Venda.

Is Online Gambling Legal In South Africa 2020

At that point in time it was really just a bunch of small rooms offering a couple of slot machines, and seeing as there was such a racial divide in the country at the time no one really bothered to take notice. The amazing thing is that this very low key start suddenly caught wind and by 1995 an estimated 2,000 illegal casinos were believed to be operating within the country.

Democracy to the rescue

When South Africa established its democratic status in 1994, the Lotteries and Gambling Board published an interim report which expressed a view that “the Gambling Act, 1965 (Act No. 51 of 1965) that was currently in effect no longer reflected the true moral viewpoint of the majority of South Africans and that the Government shouldlegalise lotteries and gambling in the Republic of South Africa”, it was on the basis of this that the South African government took a decision to allow legalised, but regulated and licensed gambling in the country, legalised and regulated being the key words here.

The rise of the NGB

In 1996 South Africa looked to progress things slightly more and as a result they created a uniform structure and adherence of gambling in the country, the result of this is the National Gambling act of 1996which was officially passed, the act stated that a total of 40 licenses across South Africa’s provinces would be issued allowing casinos and a national lottery to legally operate, if they obtain the relevant license of course.

It was also at this time that the National gambling board of South Africa was created, with the purpose of supervising and regulating the industry.

Illegal Online Gambling

There is a slight plot twist though, in 2004 The national gambling act of 2004 was suddenly introduced and its position instantly replaced the original act of 1996, the basis of the new act was built on the idea of protecting the public against the adverse effects of gambling, it also looked at means to contribute to infrastructure development in rural communities and finally limit, control and monitor possible proliferation of gambling and illicit gambling activities in South Africa.

The biggest change to this new act was the clause stating that interactive gambling (or online gambling) was now officially recorded and subsequently deemed illegal by all means within the borders of South Africa.

South Africa’s current gambling status

2018 saw the final changes to the stance of online gambling in South Africa, certain clauses and sections stated in the National Gambling Act of 2004 were modified by way of the National Gambling amendment bill of 2018. The summary of the bill states that only sports betting is deemed to be legalised in South Africa, this includes horse racing.

Government at this stage also then took a decision to also allow legalized and regulated land based gambling in South Africa, given that the operated upheld the relevant license documentation.

In terms of interactive gaming (online gambling) however, section 11 of the gambling act 2004 issued by the NGB still remains firm, it states that:

“A person must not engage in or make available an interactive game except as authorised in terms of this Act or any other national law”.

There is a slightly grey area to the clause though, you see the act states interactive gaming may not be provided or made use of by any persons within the borders of South Africa, which is more focused on the online casino and less on the players themselves.

The grey area comes in that the government has no real means nor sufficient resources required to fully regulate the operations of all interactive gaming/gambling services marketed to South Africans, so the loophole is that many of these casinos will simply set up shop via offshore servers (the business is located outside of South Africa) and target South African players from there, this explains why many offshore casinos have continued to make available gambling services to South African players without any hassle.

The Verdict

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As you’d expect from a country which has a long and complex history in many ways, South Africa’s attitude to gambling has been no less tortuous.

The very first definite legislation came into force as long ago as 1673 when all forms of gambling were banned, with severe punishments for those found to be breaking the law. It wasn’t until 1965, nearly 300 years later, that the laws were relaxed – and, even then, only slightly – as horseracing and betting on the races themselves was finally allowed. This was because it was classified as a sporting activity, not a gambling one.

During the 1970s casinos began to spring up around the country and by the mid-90s it was estimated that there were well over 2,000 establishments operating illegally all across South Africa. But with the end of apartheid there was a sudden sea change in the law.

Illegal Gambling Bust

The National Gambling Act of 1996 established a licensing system for the casinos which, it was hoped, would boost tourism and raise much needed tax revenue for a country throwing off the shackles of the old regime. The Act also permitted the establishment of South Africa’s first lottery and reclassified horseracing as a gambling activity, not a sporting one.

The rise of online gambling

While the Act did a great deal to transform gambling in the country it was only eight years later in 2004 when another piece of legislation was deemed necessary to account for the appearance of online gambling. The 2004 National Gambling Act prohibited South African operators from both offering and indulging in interactive gambling online to play casino, poker and bingo games, although sports betting was still permitted.

In 2008, moves were made to modify the law to allow the licensing of approved online casino games with the National Gambling Amendment Act. However, opposition was so strong from a number of interested parties including the owners of land-based casinos and anti-money laundering authorities that the Act never came to pass.

There was even worse news in 2010 for anyone hoping to play in online casinos when a law was passed banning all internet gambling, even where providers were located outside of the country. The penalties for breaking the law were also set at such a high level that operators, players and even those processing payments for gambling would be deterred by the fines of up to R10 million or jail sentences of up to 10 years.

A growing problem

But, as is often the case when activities are banned by law, this has had the opposite to the desired effect by fuelling an illegal gambling industry that seems to grow larger by the year. It’s hard to get precise figures, but it is believed that the epidemic proportions of illicit gambling, both online and in the real world, mean that there are many, many more than the estimated 2,000 illegal casinos and gambling dens that were believed to be operating back in the 1970s. To say this is a problem for the authorities is something of an understatement.

It’s also a financial headache for the country. According to figure put together by the governing body of land-based operators, the Casinos Association of South Africa, in 2018 the gross gambling revenue for the country dropped by 2%, something the CASA believes can be firmly laid at the door of the illegal operators. In total this amounts to around R 37, million, 36% of which would normally be heading for the government’s coffers in the form of taxes and fees.

The CEO of CASA, Themba Ngobese, has been nothing if not forthright on the subject saying that it’s a problem that “not only affects the bottom line of licensed casinos‚ but society at large‚ as tax revenues‚ employment opportunities and associated economic activities are suppressed”.

A further dimension to the issue comes from the fact that there have been links made between illegal gambling and organised crime in the country, although, when questioned, the police have said that they prioritise other more serious crimes such as armed robbery over and above breaking up illegal gambling dens.

There’s very strong evidence to suggest that many of these continue to operate in plain sight in shopping malls up and down the country. Often these appear, on the outside at least, to be perfectly respectable internet cafes and lounges. But behind their darkened windows there are banks of computers connected to online gambling networks. Many also have security guards patrolling outside to deter any unwelcome visitors.

Learning from the UK?

Reformers who believe that the best way to tackle the issue of illegal gambling think that taking a leaf out of the UK’s book may be the answer. In 2006 the then Labour government brought in a whole raft of new laws to permit gambling and set up a regulator called The Gambling Commission. This coincided with the earliest days of online gambling and this has grown to become the biggest single sector in the UK.

Gambling online has never been more popular with residents of the UK. At the best online casinos, there is something for every type of player, for example, if you check out the quantity and quality of the games at the famous 888 casino, which is being widely regarded as the best provider of online casino games, you will understand why online gambling is currently so popular. With these games being such a hit in the UK, should the South African government be considering implementing similar laws? The games would likely be very popular, limiting the amount of illegal gambling which takes place within the country. By keeping a firm grip as well as working with the industry, not against it, The Gambling Commission has ensured that the industry is well-regulated and smooth running in the UK.

However, it would seem that South Africa is far from ready to head down this route with laws set to become even more strict that they are currently. In an amendment tabled in July 2018 by the Department of Trade and Industry it recommends a number of measures including banning dog racing, reducing potential payouts from land-based casinos and a crackdown on “hidden” entrances to gambling halls in shopping centres and arcades. To date the bill is still going through the legislative review process but it’s unlikely that any changes made to it will be major ones.

Online Gambling South Africa Illegal Laws

For those in favour of tighter regulations and greater restrictions on gambling it will be welcomed. For those who were hoping that a favourite pastime would soon be made easier it be a disappointment. But whether it has any effect on illegal gambling in the country remains to be seen.