Online Gambling Legalized, Regulated in South Africa

According to Reuters, the South African Parliament has passed legislation to make online gambling legalized and regulated. Prior to its passage, online gambling was illegal in the country. Reuters quotes a memorandum attached to the passed bill saying that “the interactive gambling industry in Africa's biggest economy was currently unregulated and ‘generally plagued’ by crime.” Licensed casino operators will now legally be able to solicit South African customers. In return, someone who wants to play must submit paperwork showing that they are at least 18 years of age. However, the National Gambling Amendment Bill must still be signed into law by President Thabo Mbeki before it takes effect.

An article in the Sunday Times in Johannesburg outlines some of the reasons for the bill’s passage. Many of these have been discussed in countries where online gambling is problematic: “Currently, there is no protection for consumers with regard to Internet gambling. Should anyone have a claim against an online gaming site, they would have no recourse — not even with the help of the gaming board.” The article states that a consumer, under the current prior law, could actually be jailed for up to 10 years for gambling on the internet.

The National Gambling Amendment Bill is quite lengthy, but its purpose is clear: “to provide a legal basis for the regulation and control of all licensed gambling activities; preserve the integrity of the Republic as a responsible global citizen by ensuring an efficient and effective gambling regulatory regime; [and] promote the development of a responsible gaming industry in the Republic.”

Compulsive and addictive gambling warnings will be featured on websites related to internet gambling. Credit to players for online gambling is also restricted. South African customers can register themselves for a “player exclusion” list in order to combat problem gaming.

The bill charges the licensees with preventing fraud and other “illegal activities,” using technology in order to do so. The National Gambling Amendment Bill was originally due to be introduced and passed by 2006, two years after the current legislation was implemented. GamblingCompliance.com expects more delays: “The bill has been passed to President Thabo Mbeki, but is not likely to be brought into effect until next year when additional regulations on licensing, tax and enforcement have been fully formulated.”

Specifically, the Memorandum notes that the Bill excludes “interactive gambling activities taking place between two or more persons that are facilitated by a third party.” This form of gambling is currently under additional study.

Despite its tardiness, however, South Africans can now breathe a sign of relief; online gambling will make a triumphant return.