Gaming board says online gambling illegal in South Africa

[The Buzz]

According to Business Day, the Gauteng Gambling Board has ruled online gambling is illegal in South Africa, and that online casinos and gamblers in the country are open to prosecution.

The gambling board says it will "pursue any person or organization which contravene the gambling legislation"

From Business Day:

The effect of this decision means both Internet operators who offer online gambling to South African residents for gain, and a player or punter who takes part in online betting, are guilty of breaking the law.

Furthermore, the ruling also makes Internet service providers accountable for the services and targets band and financial institutions that process the winners’ payments and betting transactions.

According to Gauteng Gambling Board head of legal services, Lucky Lukhwareni, online casinos are now up for prosecution.

“That’s why we approached the media to alert them of the judgment which makes online casino operations illegal, and if they continue we will have them arrested and fight for conviction.”

[best.hands]

Outch! That just means less fun within the border of South Africa. Why can't you rulers take a slice of the cake, shut your mouth up, and revise your decision.

[Anthony]

makes Internet service providers accountable

I really don't like the sound of that.

[Adamvv]

While other territories begin to adopt online gambling, others are closing their doors to the lucrative business.

South Africa is the latest casualty.

Who's next?

[shortow]

I thought their NGB sent a delegation to Antigua last year to get a look at their regs and processes with a view to getting their own licensing regime up and running some time soon.

What happened to these plans?

Did the president's wife drop a bundle at Silver Sands or something???

[Renee]

The douchebag Xenophone or whatever his name is in Oz is trying to push a law through the same as the UIGEA apparently..

It could be us!

[OPSR]

At least these countries are all relatively small when it comes to online gaming. If someone like Canada pulls something like this, it would be a problem, but there will always be another market.

[Topboss]

I have made this post in the South African members forum but as it is a private forum I thought I would make the same post here so that it is in the public forum too:

Many will have read the recent articles and headlines saying that "Online Gambling has now been banned in South Africa". This is true ...for now... but I need to clarify a few things so that you all know the ins and outs.

Firstly online gambling has always been illegal in South Africa, however in May 2008 the President signed a bill to regulate online gambling but it did not go through the final stage as they needed to clarify how the proposed regulations and processors would work. The bill was therefore opened up to the public to comment and a committee was appointed to draft a new proposal on the regulations. This is due to be submitted to the President in September 2010 and if he is happy with it, it will then be signed into law and online gambling will become legal.

The reason for the recent news media is the following:

Piggs Peak Casino is one of the largest online casinos that offers gambling in SA. They are based in a neighboring country - Swaziland - and have a license to operate in Swaziland. In 2006 they approached the National Gambling Board and Department of Trade and Industry via the High court in a request to make Piggs Peak legal in South Africa.

The court case has dragged on for a number of years and last Friday the Judge ruled against Piggs Peak. They are in the process of lodging an appeal at the Supreme Court and in the mean time the Gambling Board has allowed them to continue operating as normal until the appeal has been heard.

The media then went into a frenzy declaring online gambling illegal in view of the outcome of the court case.

After discussions with Piggs Peak's management they have informed us that it is business as usual.

So bottom line is that South Africa is planning on legalizing online gambling and if all goes well this should happen in the next few months.

[davenewgates]

We all know that online gambling is one of the great way to spend your spare time worthy. For sure this decision will bring boredom to the players of South Africa.

[Adamvv]

Given the information presented above, and the general nature of this industry, I think we can all agree that no decision is FOREVER.

A ban here, a ban there...As soon as a a country realizes how profitable it can be when regulated and "controlled", the ban gets suddenly lifted.

South Africa has some other glaring problems, so maybe this isn't the best time to legalize something controversial.

[Renee]

Thanks for that info Heather. It's interested how the media like to sensationalise rather than get the true facts out..

[tryme]

Well, Wager Junction have pulled out of SA for now. Which sucks. I've got a few South African facing sites and King Solomons features prominently on all of them.

[tryme]

Oh and Silver Sands Casino have pulled out too. This is getting ridiculous. Piggs Peak also gone and lots of playtech's no longer showing a link to the ZAR version. Hmm...this is rubbish!

[Topboss]

I can understand the guys that only offer Rands and who are based here pulling out, because they have a lot to lose if they blatantly ignore the law, but quite honestly in my opinion it is a bit premature for those playtechs that have pulled out because firstly the law should be changing quite soon, and secondly the SA Government can do nothing to them as they are not in SA
You cannot stop gamblers whether it is deemed to be legal or not, and those casinos that stick around will make some big bucks because the Piggs Peak and Silversands players will be looking for somewhere else to play.

[tryme]

Agreed. Personally, I think a lot of these programs are permanently running scared. I think that Wager Junction actually have personnel in South Africa, so that may explain that one, but - for purely selfish reasons - this is a little bit of a blow as I think that SA is a good market and I was just starting to build reasonable traffic to my sites.

[Topboss]

Agreed. I am feeling it very badly because SA has always been my biggest market and I am now facing a loss of 70% of my income. I am just praying that the appeal will go in Piggs favour and that the new law will come into effect real soon.

[tryme]

I am now facing a loss of 70% of my income. I am just praying that the appeal will go in Piggs favour and that the new law will come into effect real soon.

Jeez, that's rough. I'm behind you 100%. You pretty much own south african related casino searches so it would be more than a shame for all that hard work to go to waste. And, I don't know about you, but the South African facing Rivals aren't doing anything for me.

[Topboss]

Thanks for your kind words.
It is going to be tough but I am determined to rise above it.
Funny you should mention that about the Rival Gaming Casinos because they have never done anything for me in the past, but since Piggs Peak closed their doors on Saturday - I have picked up a number of new Rival Gaming players.
Like I said above - the casinos that stay open will bring in quite a few extra bucks as Piggs and Silversands had a huge player base and many of them will go elsewhere to play until they can go back to their old faithfuls.

[onlinecasinosa]

The US, three states have legalized internet gaming, and authorities agree it’s just a matter of time before other states follow suit. Advocates of legalized remote gaming in South Africa point out that much of the rest of the world has already approved of the activity

[Stevenbmt]

An updates on this topic?