South African Gambling Law

The South African law that has the most to do with gambling is the National Gambling Act. It says that playing or offering any interactive game not authorized by this law or any other South African law is illegal. In South Africa, it is entirely legal to wager on sporting events via the Internet. Nevertheless, citizens can only lawfully use domestic betting companies to do so; they are not permitted to gamble online with foreign betting firms while within the country's borders.

History of Gambling in South Africa

South Africa has a long and captivating history of gambling. It was first brought to South Africa in 1673, but it faced strict restrictions for a long time. Not until 1965 was there ever a ruling that allowed for any type of gambling to take place, and even that law only permitted wagering on equine competitions.

Regardless, unlawful gambling establishments sprouted throughout the nation in the late 1970s. Most of the residents in these casino jurisdictions were natives. Access to these gaming houses was limited for the few who did not live in the so-called homelands. By 1995, as many as 2,000 casinos were operating unlawfully in Transkei, Venda, Ciskei, and other places that were supposed to be off-limits to casinos.

The government, however, chose a different route. It made gambling legal by enacting the National Gambling Act of 1996. This law established consistent standards for all gambling enterprises, which they had to adhere to regardless of their geographical situs. It also classified the various forms of gambling, defined the terminology that was to be used, and segued into a description of a plan that would issue 40 different kinds of licenses to the provinces that were going to have gambling.

The National Gambling Board (NGB) oversees the regulated gambling industry, newly created by the law in question, for which the NGB also writes the rules. The passing of the law in 1996 led to the establishment of a national lottery, numerous regulated casinos, and a host of other licensed gambling facilities. The National Gambling Act of 1996 was replaced by the National Gambling Amendment Act of 2008, which was passed in 2004.

Types of Gambling in South Africa

Today, South Africa offers the following forms of gambling:

• The South African National Lottery, which was launched in 2000
• Several casinos in all metropolitan cities
• Horse betting operated by Gold Circle and Phumelela and controlled by Saftote

Online Gambling Legalization

South Africa is made up of nine provinces. Each province has its own gambling and racing board that oversees the activities within the province. The boards have all seemed to be in favor of online sports betting. However, the boards require that the operators who wish to serve their residents first apply for a license. The board that is most often cited as being the most progressive in terms of online sports betting is the Western Cape Gambling and Racing Board (WCGRB). However, it is not the only board that oversees the online sports betting activity, and it likely is not the last one to serve in that capacity.

When you win at betting on horse races, you pay a lot of taxes. A sixth of your winnings goes to the federal government, and another sixth goes to your state government, assuming your state has an income tax. Winning does not mean you get to keep all your money. It does not mean you get to keep half of your money, which, I am told, is what most people think when they think of winning a lot of money. Winning at betting on horse races is taxed heavily.

The following are South Africa’s online gambling laws:

Gambling Act of 2004 Residents are forbidden to join in or to give support to online gaming. They cannot participate, and they cannot provide any services that would enable another person to engage in online gaming. The law that makes this very clear is the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA). Under it, the only internet gaming that is permissible is online poker; the UIGEA does not prohibit that. It also does not apply to three other activities: betting on horse races; betting on sports; or, not quite the same but close enough for some jerk in Congress to have thought it a good idea, making bets with a bookie.

National Gambling Amendment Act 2008 – This act attempted to make online gambling legal and to create a regulatory framework for the online gambling business. However, it continues to exist in a state of suspension.

Still, South Africans can join in the offshore online casino, poker room, and bingo parlor fun. Odd as it might be, there is no law saying that citizens of this great country can't gamble online—a.k.a. have virtual table at the Monte Carlo as long as the website is physically located outside South Africa. In fact, many an offshore operator sends our way a heartfelt invitation to play, see us as their next depositing customer, and entice us with enough promotional eye candy to make Siegfried and Roy hang their heads in shame.

The National Gambling Board

No article discussing South Africa's gambling laws can be complete without mentioning the National Gambling Board (NGB).

This board, set up under the National Gambling Act, is part of the Department of Trade and Industry. Its job is to ensure that all gambling enterprises operate legally and in accordance with the optimal practices of the gambling industry.

Consequently, following on the heels of the NGB's activities, South Africa's gambling sector—inherited with a bad global reputation prior to the early nineties—can now be labeled with a good global reputation, a good national reputation, high stature, and low risk. Why do I say that? Because the NGB's oversight has helped transform the gambling sector into a prominent economic sector that follows not only good national practices but also good global practices that are in compliance with the standards of the World Bank and the International Monetary Fund.