Did you know online gambling is illegal in SA? Here are plans to stop it

The National Gambling Board (NGB) is working closely with law enforcement agencies to curb the surge of illegal gambling in South Africa, especially online.

The National Gambling Act of 2004 regulates online gambling in the country and sets rules for how gambling will work.

Any form of online gambling, except sports betting, is illegal in SA. This includes online casino, online poker, and others performed remotely.

What is being done about illegal gambling?

In a written parliamentary response, minister of Trade, Industry and Competition (DTIC) Parks Tau said the department is aware of the growing challenge of illegal online gambling in the country.

“There is also a challenge of illegal sports betting activities identified, wherein bookmakers offer online gambling illegally.”

He added that the NGB’s work with law enforcement includes awareness campaigns.

“To strengthen initiatives, this matter will be discussed in the National Gambling Policy Council between the Minister, the Members of the Executive Council (MECs) in the provinces, Provincial Licensing Authorities (PLAs) and the NGB.”

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Online gambling preys on vulnerable citizens

Tau was responding to the uMkhonto weSizwe (MK) party’s Musawenkosi Gasa.

Gasa had asked the minister for the reasons why his department “permits the unchecked proliferation of online gambling, particularly sports betting, when it is clear that the practice is preying on the most vulnerable citizens, turning desperation into an addiction rather than offering legitimate economic solutions”

Tau responded: “Online (interactive) gambling is unlawful in SA in terms of section 11 of the National Gambling Act, 2004 (Act No. 7 of 2004).

“Online betting or wagering is lawful in South Africa and is offered by licensed bookmakers. Gambling is a functional area of concurrent national and provincial legislative competence regarding casinos, racing, gambling and wagering as provided in Schedule 4 of the Constitution, 1996.”

The gambling industry’s role in the economy

The minister’s reply includes that the gambling industry plays a vital role in the country’s economy through revenue generation and job creation.

“Conversely, it also brings challenges, such as problem gambling and social issues, which require continued attention and responsive regulation.”

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Gambling advertisement  

Gasa also asked the minister why the DTIC is not completely overhauling the gambling industry’s regulatory framework, including immediate restrictions on gambling advertisements.

“Section 15 of the National Gambling Act, 2004 and Regulation 3 of the National Gambling Regulations, 2004 provides gambling advertisement regulation, which ensures responsible advertisement not targeted at minors and vulnerable persons,” Tau responded.

“To close the gaps in gambling advertising and its related negative impact on the vulnerable members of society, the comprehensive National Gambling Amendment Bill, 2016 was adopted by Cabinet in February 2016 and introduced in Parliament in August 2018 after undergoing legislative processes between 2016 and 2018.

“The Bill that was introduced strengthened regulation on advertising to prevent unsolicited short message services (SMS) and multimedia messaging services (MMS) intended to entice people to gamble.”

National Gambling Act, 2004 about online gambling

The National Gambling Board said the National Gambling Act defines an ‘interactive game’ as “a gambling game played or available to be played through the mechanism of an electronic agent accessed over the Internet other than a game that can be accessed for play only in licensed premises, and only if the licensee of any such premises is authorised to make such a game available for play”.

Section 11 of the Act, 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.”  

Therefore, it is illegal for South Africans to participate in online gambling unless the National Gambling Council says otherwise.

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Gambling Amendment Act

“The National Gambling Amendment Act, 2008, passed by the National Assembly and assented to by the Presidency on 10 July 2008, has never come into operation.

“In terms of section 44 of the Amendment Act, the Act “comes into operation on a date fixed by the president by proclamation in the Gazette”, which has never occurred.

“As the Amendment Act prescribes that it will only come into effect on a future date to be fixed by the president, by proclamation in the Gazette, and the president has never done so. Thus, The Amendment Act cannot be relied upon or referenced as the law regarding the regulation of interactive gaming or online gambling.”

Therefore, the National Gambling Act of 2004 remains the supreme national regulatory prescript for regulating the gambling industry.

NGB encourages compliance

The Board added that interactive gambling, such as casino-style gambling, accessible through the use of a device such as a smartphone or tablet, as well as server-based gambling inside a physical establishment styled as an internet lounge, are unlawful.

Casino games can only be played at licensed land-based casinos.

“Any establishment that cannot display a valid gambling licence issued by a provincial licensing authority is operating illegally.

“Thus, the NGB encourages compliance with national and provincial gambling legislation. However, the consequences for those who choose to persist in criminal conduct willfully will be severe.”

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