Online Gambling In South Africa Is Illegal

Online gambling banned in South Africa
Fine of R10 million or ten years in jail for online casinos, individuals, including internet service providers and banks who process payments for online gamblers and individuals who gamble online
Des Latham
Published: 2010/08/24 01:00:08 PM
According to the Gauteng Gambling Board which has fought a long-running battle with online casinos, says its now illegal to gamble using digital products inside South Africa.

That’s after a North Gauteng High Court judgement on the jurisdiction of online gambling transactions in the country which was handed down on August 20th by Judge NB Tuchten.

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 judgement which makes online casino operations illegal, and if they continue we will have them arrested and fight for conviction.”

Those entities that advertise or facilitate the advertisement of online gambling including radio and television stations, print media, and outdoor advertising agencies will also face the law.

The Gauteng Gambling Board says it will pursue any person or organisation which contravene the gambling legislation.

Persons who are prosecuted and found guilty of breach or contravention of the gambling legislation could receive a fine of R10 million or ten years in jail or both.

No-one was available to respond to the ruling at Piggs’ Peak Online and an auto-reply machine repeatedly asked for the user’s ID number.

Should they not have left the bl out of gambling and said Gaming in the article? read this article yesterday and thought it was pretty poor Journalism? unless the intend to ban horse players or sports betters also?

Suppose it answers the Betfair and Casino questions then huh?

Ou.rt Police cant catch a cold never mind implement this plan.

If you read the judgement which found for the defendants (Gauteng and national gambling Boards and Minister Of trade & Industry),

I think it boils down to this:

You cannot play on an online site that is not licenced by one of the provincial or national gambling boards.

(as stated before, it's about their tax) because as the judge says "In my judgement, the legislatures did not seek to restrict the extent of their fiscal and regulatory net. The intended to cast it as widely as possible."

We have been it touch with the National Gambling Board, and have been assured that South African Online Bookmaker Sites are legal to bet on, as they are attached to an audited Bookmakers license. Therefore it is legal for punters to bet on and to do banking transfers and credit card transactions for bets on any of the local sites.
I am awaiting this in writing and will post once received.

Colin Fourie
www.fsconline.co.za

Thanks Colin sure it can do horseracing no harm.

PHUMELELA-GOLD CIRCLE-BETTING WORLD MEDIA RELEASE

SUBJECT: Online betting on horseracing and sport is legal
DATE: Wednesday 21 August 2010
RELEASED BY: Phumelela Gaming and Leisure Limited

Horseracing and tote betting operators Phumelela and Gold Circle, and corporate bookmaking chain Betting World, would like to point out that online betting on horseracing and sport is legal and is not in any way affected by the recent North Gauteng High Court ruling prohibiting online gambling.
That the court ruling applies to online gambling on interactive games only, and not to online betting on horseracing and sport, has been confirmed by the Gauteng Gambling Board.
“Unfortunately, the court ruling has caused a deal of confusion and many people are under the impression that online betting on horseracing and sport has been banned as well. This is most definitely not the case and Phumelela and Gold Circle’s TAB online customers can continue betting as normal, as can Betting World’s online clientele,” said Robert Garner, Phumelela’s General Manager Marketing and Communications.
Phumelela and Gold Circle are the only horseracing and tote betting operators in South Africa. Phumelela operates in seven of the nine provinces, including Gauteng, and Gold Circle in KwaZulu-Natal and the Western Cape. They also own national fixed-odds operator Betting World, which offers betting on horseracing and all other sports.

Does the Tote ever come up for tender? bit of subject

The P press release says

"the court ruling applies to online gambling on interactive games only,
and not to online betting on horseracing and sport".

the judge said
an activity is a gambling game if:
1. if there is a chance that a player may receive a pay-out and
2. if the result might be determined by the skill of the player, by chance, or both

sounds like horse racing too...or practically anything. They define everything, it's really hard to misinterpret what he means.
The test was not what type of game, but did the games follow the requirements of the gambling act here in SA, and if it doesn't, SA residents cannot play.
I wonder if these journo's read the judgement before summarizing for us, or if they just asked someone who also didn't read it.

Date: 25 August 2010

PRESS STATEMENT FROM THE NATIONAL GAMBLING BOARD:

Northern High Court declares interactive gambling illegal to operate in South Africa
The Northern Gauteng High Court last week dismissed the application of Casino Enterprises (known as
Piggs Peak Casino which operates and is licensed in terms of Swaziland laws) to declare that it lawfully
advertises in South Africa as a licensed entity. Piggs Peak Casino relies on a website with a computer
server that is located in Swaziland.
The order is in response to a suit filed by Piggs Peak seeking to declare their advertisements and
operations in South Africa as lawful.
Legal basis:
Expert evidence was heard at the trial hearing to determine the fundamental issue of where gambling takes
place i.e. whether it is where the punter is situated [in Gauteng] or where the gambling equipment/server is
based [in Swaziland]. On its analysis of section 11 of the National Gambling Act No 7 of 2004, which
explicitly prohibits engaging in or making available a gambling game, the court found out that the conduct
[of the punter] taking place in Gauteng is significant. The fact that the plaintiff’s servers in Swaziland make
it possible for the gambler in Gauteng to connect interactively with them through the internet and enable
him/her to engage in a gambling game constitutes interactive gambling. It does not matter whether or not
the critical elements comprising a gambling game are to be found or generated within the borders of South
Africa or not.
This ruling affirms the South African laws that interactive gambling taking place in South Africa currently
remains illegal. The court could not make an order that is contrary to an express prohibition imposed by the
legislature as it cannot be requested to order the performance of a prohibited or criminal act.
Impact on current SA licensed online betting activities:
There is a need to clearly articulate whether or not the explicit prohibition of interactive gambling in the Act
and the ruling have any effect on current licensed online betting activities
This ruling does not impact on licensed online betting activities regulated in South Africa. South African
licensed online betting sites and any other SA bookmaker websites remain legal to operate and do not fall into this
2
category. A clear distinction between interactive gambling and online betting within the context of racing and
betting should be drawn. The latter involves the communication of a bet via the internet with the licensed bookmaker/
totalisator operator in South Africa. Betting via the internet is merely a communication medium used between the
bookmaker or totalisator operator and the customer. Customers can physically walk into a betting outlet and place
their bets or they can communicate their bet via the telephone or internet as long as they have an account. Another
distinct difference is that the outcome of events bet on, is decided outside the betting environment.
The South African public should remain wary of the fact that online gambling/interactive gambling is illegal
in South Africa. For this reason, none of the entities advertising or offering the South African public to
engage in online gambling on their websites have been licensed in terms of South African laws, and
therefore remain illegal to advertise and operate in South Africa.
The NGB is aware of the developing unregulated IG market and is putting a process that will advise policy
makers on how to curtail and address the legality of IG in South Africa. The NGB is equally aware of the
challenges that come with IT as it evolves and penetrates the country; hence, this ruling will allow
regulators some space to ensure that we understand the developing patterns of IG gambling as well as
proceed with the best approaches of legalizing and policing this form of gambling.
Policy considerations
Illegal interactive gambling activities pose a tremendous threat to the citizens of South Africa because of
ease of availability and anonymity. It has repercussions that far exceed its monetary losses to the country.
As regulators, the NGB is of the view that unlicensed interactive gambling activities significantly undermine
national policy, legislation and threaten licensed gambling operations by creating an unregulated and
untaxed competition:
- The unregulated gambling lacks consumer protection to ensure that individuals who choose to
gamble are actually paid for their winnings;
- IG operators prey on the South African public including the young and vulnerable and deprive
South Africa of millions in revenue and taxes.
The NGB is hopeful that with this landmark ruling, South Africa will be off limits to unlicensed gambling
purveyors and that the intention of the legislature to outlaw interactive gambling shall be observed. Severe
and harsh penalties will be meted out on perpetrators of illegal gambling activities who may be fined up to
R10 million and or 10 years imprisonment. Perpetrators in this context include individual punters who
engage in interactive gambling, unlicensed gambling operators making available such activities, banking
institutions, advertising media who are deemed to aid and abet illegal gambling activities or are seen as
promoting/facilitating illegal online gambling by flighting such matter.
It shall also be a requirement that unlicensed operators use readily available technology to block their
domains from being accessed in South Africa.
Statement on behalf of the NGB

Do I have to give back my piggy()

A while ago we got an opinion from Betfair's spokesperson who responded to our query. It would be interesting to get their opinion on the ruling and to find out if they will comply. Sorry to be a pain - but any chance Dave ?