Blow To Online Gambling (South Africa)

[jerryg]

Blow to online gambling

By Kim Helfrich
November 29, 2006

JOHANNESBURG – Operators offering online gambling and those who indulge in it face fines of up to R10 million and/or 10 years in prison following a landmark ruling in the Pretoria High Court.

At present the court ruling was applicable only to “casino-style gambling”, said Gauteng Gambling Board legal manager Edward Lalumbe.

“We have not ruled out the possibility of going after other operators, including those offering access to Lotto in other countries.”

South Africa does not issue licences for online casinos, and it was this that finally brought the provincial gambling authority along with the National Gambling Board and the Minister of Trade and Industry to court.

It was maintained that Swaziland-registered Piggs Peak Casino could not offer online gambling to punters in SA.

This is because SA does not have the necessary legislation to issue online gambling licences.

“A gambling operator offering online gambling needs to have a licence issued for this purpose in SA, and even though the owners of the Swaziland casino have an Internet licence, it is valid only for that country.”

The court’s decision confirms that Internet operators offering online gambling to South Africans, and players/punters taking part, are doing so illegally.

Internet service providers, financial service providers, TV stations and the print media were named in court as facilitating online gambling, also deemed illegal by the decision.

“Our overall motivation for taking the matter to court was it was facilitating illegal activity,” Lalumbe said, adding law-enforcement agencies including the Asset Forfeiture Unit and financial institutions had been consulted prior to the decision to go to court.

Link

[winbig]

Hmmm, Internet License.....

Maybe that's what the USA should do....give out Internet licenses to casinos/poker rooms that want to allow play from customers in the USA...


Then they could get their licensing and royalty fees and be happy about it, since that bill is only over the money in the first place

I could almost guarantee that it'd get rid of the rogues for players in the USA

[Chatmaster]

This is a really bad report as it implies that the NGB took the casinos to court whilst it was exactly the opposite,... sigh I think this reporter made a few phone calls for his version... Here is a better and more accurate version of what happened. http://www.ioltechnology.co.za/artic...icleId=3567877

[jetset]

Chatmaster is right - the casino owners in neighbouring independent country Swaziland actually tried to take the provincial and national government and Gambling Board to court to offer its online gambling to South Africans.

This is not as cheeky as it may sound, bearing in mind that the national government is currently considering the regulation of online gambling following an extensive commission of enquiry into the industry. And it is likely that the commission's recommendation that online gambling be regulated will be accepted.

However, that has not yet come about, and the traditional gambling laws of the country still apply, effectively making internet gambling illegal as it has no license.

Most observers are hoping the national government will move quickly on this (regulatory acceptance) as this sort of issue adds to the general confusion.

[Chatmaster]

I thought this would be a good time to share some personal opinions about this incident and online gambling in general. I know this would most probably get different responses and arguments from different people and in a way this is my objective as I might be wrong about my personal opinion, but I can't help but to ask myself so often when I hear bad judgements like was the case in the US with passing the Internet gambling law. Who does the internet belong to? Does it belong to a country? My reply to this is no. It belongs to everyone, and that is the way it should be.

My first reaction when I heard about the ruling was anger, why did Casino Enterprises do this, why did they stir this pot? But after a good night's sleep and allot of thinking, these are my thoughts on the subject.

I see what Casino Enterprises is trying to do as pioneering. They are trying to get people with little understanding of what the internet is to understand how it works. We all know how difficult it is for governments and our learned friends in the judicial systems across the globe to understand the inner workings of the internet.

I see the internet as an independant transport system. A system that allows you to cross borders and connect to individuals and companies globally. Casino Enterprises are running a licensed landbased casino in Swaziland which is in the South African Rand currency area.

What the judicial system doesn't understand is that when a user is playing on his computer the actual gambling is taking place at the place where the gambling server is located. If the gambling server is shut down, there is no means for the player (no matter where they are in the world to play or rather gamble) This means that the player are not gambling on his or her personal computer but actually playing at the place the gambling server is located. If the casino is licensed in that country then surely the gambling act is regarded as legal.

I am very sure that the same rule applies for any casino world wide, and that no matter what country you are in, even the US it will be difficult to prove that you are actually gambling illegally as the actual gambling act is taking place in the area where the casino is based.

The governments on the other hand has a major problem with money leaving the country without them raking some of it in. Some countries especially the US do not really care about the players and the wellbeing of the players. However I do not see this to be the case in SA. If Casino Enterprises can win this case, it will be pioneering a way for all online casinos to successfully take countries to court that oppose online gambling.

What do you guys think of my opinion in this regard?

[bigbcasinos]

This is about the Judiciary exercising their opinion over a matter that is 3 years old. 3 Years ago there was no Government report into the regulation of online gambling.

I read the report and recommendations by the Department of Trade and Industry (DTI). In that report, they observe that they cannot stop people playing online and that regulation is in fact the right way to do things. They even make provision for South African's to play at online casinos that are not licensed in South Africa if I recall. (I wish I could see the version that has been forwarded to the President for signature)

Anyway, if (when) the new law is promulgated, then this case is probably going nowhere because, as I mentioned, I do recall seeing a clause or two that allowed a citizen to play at any online casino in any currency.

BUT

When it comes to advertising I see something a little different. I suspect they will try put a stop to the likes of 888 Casino advertising on M Web. They will try put a stop to Radio advertising that pertains to online poker at poker rooms that are not registered in South Africa.

As an affiliate I expect to receive a rule book that tell's me to issue certain warnings to players (eg Gambling is Addictive and no under 18's allowed). I also expect to be told that I should not carry certain casinos' advertisements on my South African facing websites.

I WONDER THOUGH...

South Africa is a party to GATS. The GATS was signed by South Africa on 15 April 1994 and ratified by Parliament on 6 April 1995. Now, if we are to allow foreigners to play at South African licensed casinos, surely we must allow Foreign Casinos to tout their wares to South Africans?

[Chatmaster]

Sorry bigbcasinos I gave you negative rep their by accident and cannot fix it, sigh.

Here is a link to the report
Interactive Gambling Report

[jetset]

Just in from iafrica.com:


Thu, 30 Nov 2006
Casino operators have urged gamblers to be patient as they await a High Court ruling on internet gambling.

The Gauteng Gambling Board this week warned that online punting is illegal, but Casino Enterprises of Swaziland say they are trying to challenge this.

Casino Enterprises said the Pretoria High Court has not dismissed its application to provide online gambling to the residents of Gauteng.

According to sources at the consortium, the first application was set aside on Tuesday and a second will be submitted in the next two weeks.

The Gauteng Gambling Board is still adamant that online gambling in South Africa is illegal.

[Casinomeister]

Sorry bigbcasinos I gave you negative rep their by accident and cannot fix it, sigh.

Here is a link to the report
Interactive Gambling Report

Fixed

[Chatmaster]

Just a followup on this story

In his 27 November judgment, Pretoria High Court judge Willie Hartzenberg said that, in his view, Casino Enterprises did not disclose a reason for approaching him for the order. “In the result I shall set aside the declaration and allow the plaintiff time to file an amended declaration,” Hartzenberg said in the judgment, of which ITWeb has a copy.

Despite Hartzenberg effectively setting aside the case, the parties involved have drawn diametrically opposite conclusions from the case. The National and Gauteng Gambling Boards view Hartzenberg's judgment as a victory and are threatening to prosecute online casinos, gamblers and advertisers alike, while Casino Enterprises believes its activities remain perfectly legal.

http://www.itweb.co.za/sections/quic...StoryID=169311