SOUTH AFRICAN ONLINE GAMING NO COMPETITION FOR LAND INTERESTS

7 September 2007

Internet gambling was expected to involve only about 2 percent of the gambling population compared with the 80 percent engaged in land-based casino activity


The South African publication Business Day reports that Internet gambling will involve only about 2 percent of the gambling population compared with the 80 percent engaged in land-based casino activity, according to the South African government's Department of Trade and Industry.

The figures were used to rebut claims by the Casino Association of SA that the introduction of online gambling would have a negative impact on its land casino members.

“There is no apparent threat to the land-based casino [industry] from interactive gambling,” DTI acting deputy director- general Fungai Sibanda told Parliament’s trade and industry committee this week, claiming that the market would determine the financial viability of internet gambling.

Sibanda was responding to suggested amendments to the National Gambling Amendment Bill made by gambling operators, civil society and religious groups. The bill will legalise and regulate internet gambling for the first time in South Africa.

Sibanda also rejected the demand by casino operators that they be automatically licensed to operate internet gambling, saying there was no known jurisdiction in the world that gave automatic licences.

The licensing process had to be transparent, fair and open to allow new players into the industry. Sibanda stressed that person to person betting exchanges, as proposed by UK operator Betfair, would not be introduced before research into its implications was finalised - and this was a long way off.

Regulations issued by Trade and Industry Minister Mandisi Mpahlwa will determine the registration and verification process for all players.

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