SOUTH AFRICA Law and Practice Contributed by: Wayne Lurie, Lurie Inc
Offering Unauthorised Games/Bets Even licensed operators can commit offences by offering games or bets outside their licence scope. The Portapa case illustrates this: a bookmaker offering a roulette-based game (which is outside what a book- maker may offer under Gauteng law) was deemed to be acting unlawfully. Similarly, a casino offering more slot machines or tables than approved, or a bingo hall offering unapproved games, would be violating condi- tions and potentially committing an offence. Advertising Offences The NGA prohibits advertising any gambling activity that is illegal or unauthorised. Publishing or broadcast- ing such advertisements (and by extension, sponsor- ing events to promote illegal gambling) constitutes an offence. For example, advertising an offshore online casino via South African media is unlawful. Ancillary Offences Other key offences include cheating or fraud in gam- bling (eg, manipulating game outcomes), and interfer- ence with regulated devices (eg, tampering with a slot machine). Penalties Framework These offences generally carry severe penalties (see 3.6 Penalties for Unlawful Gambling ). Enforcement has historically prioritised unlicensed operations and high-impact violations whereas minor infractions by licensees tend to be handled administratively unless egregious through a quasi-judicial disciplinary pro- cess resulting in administrative fines. 3.6 Penalties for Unlawful Gambling The NGA sets maximum penalties of up to ZAR10 million in fines or ten years’ imprisonment (or both) for most offences. Similar maxima are echoed in pro- vincial laws. Forfeiture of Proceeds Courts have authority to order the forfeiture of pro- ceeds from illegal gambling. If someone profited from an unlicensed casino, those profits can be seized. The NGB has reiterated that winnings from illegal online gambling will be confiscated if detected. This acts as both a penalty and a deterrent to players and opera- tors.
Administrative Fines Apart from criminal prosecution, gambling boards can impose administrative fines on licensees for regulatory breaches. Licence Sanctions An often more impactful “penalty” for a licensee is the risk of licence suspension or revocation for unlawful conduct. Losing a gambling licence effectively shuts down the business and is thus a potent sanction. Boards usually give a licensee a chance to remedy issues, but for serious or persistent unlawful gambling activity, revocation is on the table.
4. Licensing and Regulatory Framework 4.1 Regulatory Authority National Authorities
The Department of Trade, Industry and Competition (DTIC) is the government ministry overseeing gam- bling. Under the DTIC, the NGB serves as the “federal oversight body”. The NGB’s functions include moni- toring the performance of provincial regulators, main- taining national registers (of excluded persons, gam- bling devices, and probity clearance certificates), and ensuring national norms are upheld. It also advises the Minister on gambling policy and can intervene in dis- putes between provinces or issues of national interest. Provincial Regulators Each of the nine provinces has its own gambling regulatory authority responsible for licensing and direct regulation of operators. These are typically called “Gambling Boards”. They issue licences for casinos, bookmakers, bingo, LPMs, and so on within their province. They also enforce compliance through inspections and hearings, and collect provincial gam- bling taxes/fees. In recent years some of these boards have been combined with their liquor board counter- parts by provincial government and become known as “economic regulators”, for example, Mpumalanga
and, most recently, KwaZulu-Natal. National Lotteries Commission (NLC)
The lottery sector is separately regulated by the NLC (formerly the National Lotteries Board). The NLC,
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