South Africa has a long history of restrictive gambling laws, dating back to 1673. Gambling in all forms, with the notable exception of horse racing, was banned in South Africa in 1965. The 1994 government lifted some of these restrictions, and the national lottery was born as well as the National Gambling Board a few years later.

Recently there has been some speculation around whether online casino gaming is legal in South Africa. Online sports betting is currently allowed, as long as you place your bets through a bookmaker that is licensed to take bets in South Africa. Although you can find excellent land-based casinos in South Africa that are licensed and regulated and completely legal, online casino legislation is less clear cut and has been murky for some time.

The National Gambling Amendment Act of 2008 sought to lift the restrictions on online gambling and pave the way for regulation to commence, but this act has never come into effect. This is what has caused some of the confusion around whether online casino gaming is actually legal. In the midst of the Covid restrictions which have taken their toll on the land-based casino industry in the country, operators like Sun International have been campaigning to complete the work to allow the National Gambling Amendment Act to take effect and for government to pass the legislation that will allow online casinos to be regulated and to operate legally in South Africa.

Online Gambling Legislation South Africa Government

Sep 04, 2017 The National Gambling Act from 2004 made the online gambling illegal. According to the updated law from 2011 any form of online gambling in South Africa were considered as completely illegal. But the law hasn't restricted the players and nowadays there are plenty South Africans who break the law and exercise online gambling. At this time in 2020, the legislation still states that it’s not legal for online casinos to offer real money gambling to South Africans. And since there are many online gaming sites that DO in fact offer exactly that, there are clearly some well-used loopholes in play. As online gambling remained illegal for the most part in South Africa, SA gambling laws were vastly ignored by the population. South Africa became one of the most profitable customer markets for offshore online gambling operators, which led to the High Court Judgment of 2010.

Many South African players are already playing at regulated online casinos that are based outside the country. The Sun International Group would like to create an online version of its well-established land-based casino to create its own share of the online market. This is why they have been lobbying for the legalisation and regulation of the online casino industry, which would bring it in line with the current laws around online sports betting.

As it stands, The National Gambling Board stated in September 2020 that online casinos in South Africa are not legal, and both players and operators could face penalties if online gambling activities are detected. Despite this, there are many casino sites and casino-sportsbook hybrids that are based offshore that will not turn away players from South Africa, and casinos still accept deposits in ZAR.

Amid the impact that Covid restrictions have had on both the country and the entertainment industry in South Africa, it seems that it is simply a matter of time before the government can be convinced of the benefits of the regulated online gaming industry. Considering the industry’s massive growth around the world, hopefully, South Africa will soon be part of the trend, legally and safely.

In the meantime, it helps to know how to choose the right casino for you, so we have created a short guide to choosing a safe, reputable online gaming site.

What is a minimum deposit casino?

Online casinos generally have limits when it comes to how little or how much you can deposit in any single transaction. We have categorised the South African casinos we review according to the lowest deposit they will accept. This gives players more information and a basis of comparison in order to help them choose a casino that suits their budget. A minimum deposit casino in the purest sense is a South African casino that will accept a low deposit, to give more players access to its casino games without forcing them to make larger deposits than they would like.

How do you choose a good online casino?

If you want to take the plunge and play online casino games with South African Rand, then it is very important to choose a safe, reputable casino site. While welcome bonuses are often very tempting, there are several important boxes to tick before you give your details to an online casino. We investigate all of these factors in detail when we review web-based casinos in every minimum deposit category.

Security and Licencing

The first point to check is whether the casino holds a valid gambling licence. If it has a licence, it means the casino is subject to checks and regulations in order to keep its licence. The casino also needs to provide a secure platform to conduct online payments. Online casino reviews are a valuable resource to help you to find out what security measures the casino has in place to protect both your banking transactions and the privacy of your personal data.

A variety of top casino games

Once you have found a secure site, your experience will be much more rewarding if the casino has a wide variety of casino games from multiple software providers. This will give you a richness and depth in your gaming choices that are not found as readily at casinos that have a single supplier. Choosing a casino with respected software providers means you will get access to games that function perfectly on mobile or desktop, with high-quality sounds and graphics and bug-free gameplay.

Most modern casinos will offer you a Live Casino section, where you can play table games with a real dealer in an online setting. Your internet connection needs to be good to enjoy this, as the games work through high-definition live streaming. Some of the best online casinos will have a full sportsbook too, so you can play slot games, Live Table games like blackjack and roulette as well as placing bets on your favourite sports games, all in one secure betting site.

A selection of reputable payment options

The best casinos will offer you multiple deposit options so you have a choice in what method to use to fund your casino account. If you are not comfortable with using your credit or debit cards directly, choosing a casino that offers you several casino payment options is a must. Most good casinos will offer you a variety of web wallets, prepaid cards, bank transfer methods or cryptocurrency options. There is an ever-widening pool of casinos that accept cryptocurrency, so if you are looking for more anonymity in your online gaming transactions, then playing with Bitcoin, Ethereum or any other cryptocurrency is one of your best bets.

Conclusion

Despite the confusion, the often contradictory news stories and the widespread availability of online casinos that accept South African players and currency, it is still not legal to play at online casinos in South Africa. There is an ongoing groundswell of lobbying and pressure from South African land-based casinos like Sun International and Tsogo Sun to encourage the government to finalise legislation that will enable online casinos to be licenced and regulated within the country. This has not yet come to pass, although much of the work to get the bill created has already been done. There are huge potential benefits to the country to be part of such a massive money-making industry, but the debate on the social impact is still ongoing. In the meantime, if you are going to play at online casinos that are based outside the country, it is always best to choose a reputable, regulated casino. Please note, because online gambling is still illegal, you could face penalties and the confiscation of your winnings.

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 existed as a sporting activity.

In the late 1970s casinos started operating in the bantustans (the nominally independent areas called homelands) of Bophuthatswana, Ciskei, Transkei and Venda. Only native South Africans lived there and most citizens couldn't access those gaming establishments. By 1995 an estimated 2000 illegal casinos were believed to be operating within the country. In 1994, when the new democratic government came to power, all forms of gambling were legalised. In 1996 the National Gambling Act instituted a system of licensed casinos and a single national lottery. Horse racing was also proclaimed gambling activity.^[1]

The National Gambling Act of 1996 made provisions for the regulation of gambling activities and promotion of uniform norms and standards in relation to gambling throughout the country. It gave definitions to different gambling notions, described how the 40 gambling licenses should be distributed among the provinces and provided information on liability. It also established the National Gambling Board, an organisation responsible for the supervision and regulation of the gambling industry. This change in legislation saw the establishment of legal casinos, a national lottery and other forms of gaming.^[2]

In 2004, another National Gambling Act repealed the Act of 1996. And in 2008 The National Gambling Amendment Act was introduced.

Prevalence and value[edit]

According to the 2006 study the most popular forms of gambling in South Africa were the National Lottery (96.9% participation), slot machines (27.7% participation), scratchcards (22.7% participation), charity jackpot competitions (11.6% participation) and horse racing betting (11.5% participation). 8.3% of respondents said they have never gambled and a further 5.5% characterised themselves as occasional game players with no regular forms of gambling.^[3]

In the 2006/2007 financial year licensed gross gambling revenue as monitored by the National Gambling Board totalled R13.52 billion, from R11.4 billion the previous year. 86.2 percent of that revenue was derived in casinos.^[4] In the same period the Board reported a total of 455 raids on and closures of presumed illegal gambling operations.^[5]

South Africa’s gambling revenues are projected to rise to R30 billion in 2019, according to a new report. The South African gambling industry – including casinos, sports betting, the National Lottery, limited payout machines and bingo – achieved gross gambling revenue of R26.3bn in 2016.

Types of gambling[edit]

South African National Lottery[edit]

The South African National Lottery was established in 2000 and has been in continuous operation since, apart from a suspension between April 2007 and October 2007. In its last year of operation transaction values totalled R3.972 billion, with an average of five million transactions per week, making it the most popular form of gambling in South Africa. South Africa known as one of the largest countries participate in UK49s lottery draw operated by Ladbrokes Coral.

Gambling revenue from the National Lottery is projected to increase to R2.33 billion in 2019.^[6]

Casinos[edit]

Casinos operate in all metropolitan areas in South Africa. With the largest being the Rio Casino Resort, which is also the largest casino in Africa and the fifth-largest casino in the world.^{[citation needed]} Tsogo Sun Montecasino, also located in Johannesburg, is another of South Africa's largest casinos.

New Online Gambling Legislation

Horse racing[edit]

On-track betting on horse races was the only legal form of gambling in South African until 1996. Due to its complexity and the difficulty of attracting new players it did not effectively compete with the newly introduced National Lottery and casino games.^[7]

Betting on horse races is controlled by Saftote and operated by Gold Circle in KwaZulu-Natal and the Western Cape and by Phumelela in the remainder of the country.^[8]

Online gambling[edit]

Licensed gambling sites[edit]

Each of South Africa's nine provinces has a gambling and racing board. To offer online betting bookies must be licensed by one of these boards. Currently the Western Cape Gambling and Racing Board (WCGRB) is largest provider of online bookmaker licenses.^[9] South Africa residents can use these online betting sites legally. For bets involving horse racing 6% is deducted from winning to cover VAT. As of May 2012, no additional tax is charged to recreational bettors, and recreational gambling winnings are not considered income for income tax purposes.^[10]

Online gaming laws[edit]

The National Gambling Act 2004 prohibited both offering interactive gambling services and engaging in interactive games (games on the Internet).^[11] This rule applies to all online operators, licensed in any jurisdiction. It's however important to note interactive gambling relates specifically to games such as casino, poker and bingo. Online sports betting, online horse race betting and the business of bookmaking is lawful in South Africa, provided that the person conducting such business holds the necessary provincial bookmaker's licence(s), or is using a website with proper licence(s).

The National Gambling Amendment Act of 2008 that was published in July 2008 was meant to be an attempt to legalise interactive gambling in the country and make provisions for the regulation of this market. The Amendment Act was actively confronted by the interested parties (land-based gambling houses and anti-money laundering authorities). For this reason, the Act hasn't come into power yet.

On 20 August 2010 even online gambling offered through servers located outside the country was banned in South Africa. This was the result of the North Gauteng High Court judgement on the jurisdiction of online gambling transactions in the country. Consequently, both offering gambling services online and gambling online became illegal. The only exceptions are province licensed horse racing and online sports betting. Casino sites, individuals, internet service providers and banks that process payments for online gamblers are subject to a fine of R 10 million or 10 years of imprisonment, or both. Mass media channels that transmit or facilitate advertisement of online gambling services (TV and radio, newspapers and magazines, outdoor advertising agencies) are also to be held liable.^[12]

The South African Department of Trade and Industry also suggested to consider penny auctions a type of online gambling and illegalise them. The National Gambling Amendment Act of 2008 may come into force after an appeal to a high court ruling against 'interactive gambling' is heard.^[13]

References[edit]

1. ^Stephen P. Rule; Terezinha Da Silva; Chris Sibanyoni (2000). The Social Impact of Gambling in South Africa. HSRC Press. p. 8. ISBN0-7969-1971-2.
2. ^National Gambling Act, 1996 [No. 33 of 1996] – G 17307
3. ^'Problem Gambling Prevalence Study 2006'(PDF). National Responsible Gambling Programme. Archived from the original(PDF) on 9 October 2006. Retrieved 22 September 2008.
4. ^'National gambling statistics for the financial year ending 31 March 2007'. National Gambling Board. Archived from the original on 7 October 2008. Retrieved 22 September 2008.
5. ^'Illegal Gambling statistics for the financial year ending 31 March 2006'. National Gambling Board. Archived from the original on 6 August 2007. Retrieved 22 September 2008.
6. ^'How much is the South African gambling market worth?'. www.bettinggods.com. Retrieved 6 January 2018.
7. ^'Speech by Thibedi Majake (CEO of the National Gambling Board) at the 2006 national convention of Racing South Africa'. Racing South Africa. Retrieved 22 September 2008.^{[dead link]}
8. ^'Sport: Horse racing in South Africa'. SouthAfrica.info. Archived from the original on 16 September 2008. Retrieved 22 September 2008.
9. ^WCGRB Licensed Betting Sites
10. ^Legal South Africa Betting Sites
11. ^'Online Gambling Remains Unlawful in South Africa'. Archived from the original on 26 April 2012. Retrieved 2 December 2011.
12. ^Online Gambling Banned in Africa
13. ^Online Gambling in SA: Is It Legal?

External links[edit]

Online Gambling Legislation South Africa News24