Online Gambling Prohibition in South Africa

Published Friday, October 31, 2014 -
Online Gambling Prohibition in South Africa

Many countries in the world don’t like international online gambling operators because they cut into revenues gained by taxation and licensing. There lies the problem with the internet, it is open to the public and sometimes it is freely accessed. That number has grown from 361 million in the year 2000 to almost 21 billion today.

Some countries have spent a lot of energy and political time and money on determining whether online gambling is good for the jurisdiction or not. South Africa is no exception to this and has decided that online gambling should be prohibited there. Gambling in South Africa has been heavily restricted since 1673, with South Africa's Gambling Act of 1965 officially banning all forms of gambling except betting on horse racing which is considered a sport. The situation changed with the introduction of The National Gambling Act of 1996 which created provisions for the regulation of gambling activities and promotion of uniform norms and standards in relation to gambling throughout the country.

The Act defined different gambling options and described the distribution of the 40 gambling licenses. It also established the National Gambling Board, responsible for the supervision and regulation of the gambling industry. This change in legislation saw the establishment of legal casinos, a national lottery including other forms of gaming. In 2004, another National Gambling Act repealed the Act of 1996 then in 2008 The National Gambling Amendment Act was introduced. Lobbying efforts have kept the Act from being enforced. On 20 August 2010 online gambling offered through servers located outside the country was banned in South Africa. Consequently, both offering gambling services online and gambling online became illegal. South Africa’s Democratic Alliance spoke out against a complete ban of online gambling, instead identifying regulation as a better option. It looks as if online gambling is in for a long hard ride in South Africa similar to the experience in the USA.




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