STILL NO ONLINE GAMBLING LEGALISATION IN SOUTH AFRICA

1 June 2007

The indications are that regulation and licensing are imminent, but no moves yet

South Africa, with its first world communications and banking infrastructure and low operational costs potential, remains on the agenda of many online gambling companies who anticipate a liberalisation of the country's anti-online gambling laws in the near future.

Despite an extensive study of the international industry and its implications for the country, and indications that licensing and regulation is the way to go for the South African government, gambling via the Internet is currently illegal, both to play and operate.

Last November, the High Court in Pretoria ruled that anyone participating in online gambling, or helping to facilitate it, could face a fine of up to R10-million (USD $ 1.4 million) or 10 years in jail, according to an article in the Daily News.

Online gambling makes up a small share of all gambling in South Africa, but its use is growing rapidly, an article in the Cape Times revealed this week.

Whilst it is unknown exactly how much money is spent on online gambling, general gambling activity has been increasing across South Africa, with gross gambling revenue up by 16 percent from R9,9-billion in 2004/05 to R11,5-billion in 2005/06, according to the national gambling statistics database.

The government has consulted widely on the introduction of licensed and regulated Internet gambling as both a player service, and as a potential source of overseas revenues from licensed operations on South African soil and under strict regulation.

Such regulation would require companies to be registered and licensed in South Africa, with precautions against problem or underage gambling. In order for companies to obtain a licence, their gambling sites and advertisements would have to have responsible gambling information sections and links, and assurances of game fairness would probably be required.

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