SOUTH AFRICA Law and Practice Contributed by: Wayne Lurie, Lurie Inc
under the Lotteries Act, conducts the process of awarding the National Lottery licence and monitors the licensee’s operations and contributions to good causes. It has enforcement powers over lotteries and sports pools, and also registers smaller society lot- teries. South Africa employs a strict licensing regime for all gambling activities. The approach is largely prescrip- tive in that legislation and regulations spell out what is allowed, and anything not explicitly permitted is pro- hibited. Regulators scrutinise applicants intensively (fitness and propriety checks) and attach detailed conditions to licences. This approach aims to ensure only suitable operators participate and that gambling is offered in a controlled, transparent manner. Enforcement and Compliance 4.2 Regulatory Approach Licensing as Cornerstone The regulatory approach historically relied on sched- uled inspections and reactive enforcement (eg, responding to complaints). Recently, it has become more proactive and risk-focused. For example, regula- tors are increasingly monitoring online activities and advertising, recognising these as higher-risk areas for illegal activity or harm. Consumer Protection and Responsible Gambling The approach puts significant emphasis on respon- sible gambling measures (covered in 7. Responsi- ble Gambling (RG), Also Known as Safer Gambling (SG) ). Regulators view protecting the public as a core mandate. As the gambling market grows, authorities have stressed the need for stronger consumer pro- tection policies, even contemplating measures like stricter advertising regulations. Concurrent Competency – Harmonisation Versus Autonomy A feature of South Africa’s approach is balancing national uniformity with provincial autonomy. The national law sets broad parameters (eg, what gam- bling modes exist) while provincial laws tailor imple- mentation. The SCA in Portapa reaffirmed that this mosaic is deliberate and constitutionally designed – provinces can innovate or restrict as per local condi- tions. The downside is potential inconsistency.
The regulatory approach is cautious and controlled, increasingly adapting to modern challenges. It remains licensing-centric and enforcement-backed, but with growing initiatives to address cross-provincial consistency and to modernise rules (especially for the online context). South African regulators aim to enable a well-regulated gambling market that fosters eco- nomic benefits (tax revenue and jobs) while minimising social harms. 4.3 Types of Licences Casino Licence This is required to operate a casino (offering slots and table games) at an approved site. These licences are limited in number per province and typically awarded via a competitive bid. A casino licence usually encom- passes all gambling activities on the casino floor (gaming machines, tables, sports betting areas, etc, under the same roof). Betting Licences • Bookmaker licence – to accept fixed-odds bets on sporting events and other approved contingencies. It allows land-based and online/mobile betting offerings by the holder (subject to provincial condi- tions). • Totalisator (tote) licence – for pool betting, tradi- tionally held by the turf club or an entity such as Phumelela/Tab for horse racing bets. Some prov- inces also allow tote licences for sports pools. • Bookmaker premises licence – many provinces require each betting shop to be licensed separately in addition to the bookmaker operator licence. • Bingo licence – authorises the operation of bingo games in a specific hall. Modern bingo licences often cover electronic bingo terminals (EBTs) as well, which emulate slot-like gameplay under the guise of bingo. These licences are usually limited per province and sometimes linked with specific sites. • LPM route operator licence – permits a company to install and operate limited payout machines (slots with capped stakes/prizes) across multiple venues in the province. Each province allows a small number of route operator licensees (eg, two or three). The route operator supplies and monitors the machines, sharing revenue with site owners.
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