SOUTH AFRICA Law and Practice Contributed by: Wayne Lurie, Lurie Inc
• social gaming – with equally careful consideration being given to the challenges pertaining to poker; and • online lotteries are not permitted, nor is the partici- pation by South African citizens in foreign lotteries, however, for many years several provincial gam- bling regulators have permitted the laying of fixed odds bets on the outcome of the local and foreign lotteries, which offers punters similar odds for simi- lar stakes on such lotteries ‒ this has become con- tentious and has become the subject of litigation for the past seven years, culminating in the esca- lation of the issue to the highest court in the land (see 1.1 Current Outlook and Recent Changes ). Ongoing Illicit Offerings Pure online casino platforms (not licensed as betting operators locally) are deemed illegal, yet many off- shore gambling websites still target South Africans. Authorities have struggled to police these effectively due to jurisdiction and technological limits. The NGB regularly warns the public that playing on unlicensed gambling sites is unlawful, and it has highlighted that winnings from such sites have no legal protection and may be confiscated if discovered. However, it contin- ues to muddy the waters by conflating the concept of illegal offshore casinos with licensed provincial book- makers. Enforcement against offshore operators has been largely non-existent. Any prospective legisla- tion should hopefully introduce more robust blocking measures and explicit licensing of online gaming to address this grey market. 2.2 Land-Based Gambling All major forms of land-based gambling are permit- ted under licence. These include casino gaming (slots and table games at casinos), betting on sports and horse races (at licensed bookmakers’ and totalisators’ premises under the same licences permitting online betting as described in 2.1 Online Gambling ), bingo (traditional and electronic bingo in licensed halls), and limited payout machines (LPMs) in bars and other venues. Poker can be offered in licensed casinos (as a casino game) but there is no separate poker-room licence type. Overall, the land-based sector is well- established, with commercial casinos and LPM route operators present in most provinces.
Casino licences are capped by policy (no more than 41 nationwide), and each province has an allotted number – most of which have been awarded in prior years. No new casinos have been licensed since the last submission; entry to the casino market is only possible via acquiring an existing licence. Betting shop licences (bookmakers) and LPM site licences continue to be issued by provinces. In general, land- based licences are available (mostly on RFA (regula- tory framework approval) and in some provinces on demand) but closely controlled – applicants must meet stringent suitability, local economic develop- ment, and Black Economic Empowerment (BEE) own- ership requirements. The land-based gambling industry continues to face headwinds from the consumer shift to online wager- ing. Casino revenues, while improved, now represent a smaller slice of the pie as bettors gravitate toward online options. Some casino groups have responded by launching betting divisions (many traditional casino companies now also hold bookmaker licences). In the bingo and LPM sectors, gradual expansion is ongoing – additional electronic bingo terminal sites and LPM routes have rolled out in certain provinces, extending gambling availability in retail venues. Regulators have increased compliance oversight in venues, enforcing underage gambling prohibitions and anti-money laun- dering controls in this cash-intensive environment. The National Gambling Act of 2004 (NGA) is the national legislation outlining the broad definitions of legal gambling types, standards and policies. The 2004 Act made minor reforms to the 1996 post-apart- heid legislation following the legalisation of gambling in South Africa in 1995. The major feature of this stat- ute was to prescribe that further provisions for inter- active gambling should be finalised within two years of its promulgation. To this end, a special statutory committee was to be formed to advise the Minister of Trade and Industry of draft legislation within one year. The author formed part of this committee and the duty of that committee was discharged at the end of 3. Legislative Framework 3.1 Key Legislation
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