SOUTH AFRICA Law and Practice Contributed by: Wayne Lurie, Lurie Inc
bling market is well-developed, so regulatory authori- ties are careful about issuing new licences, balancing market stability with competition. Any applicant for a “readily available” category still faces a thorough licensing process, meaning availability refers only to the theoretical openness of the category, not ease of obtaining approval. 4.5 Duration of Licences In general, licences are not issued for a finite period and are “in perpetuity” subject to annual renewal with major probity of the licensee occurring every three years or so. 4.6 Application Requirements Fit-and-Proper Criteria Applicants (company and individuals behind it) must demonstrate they are “fit and proper” to hold a gam- bling licence. This entails comprehensive disclosure of ownership, directorship, and funding sources. Background checks will look for criminal records, insolvency, or any involvement in unethical activities. Integrity is paramount; a history of fraud or offence can disqualify an applicant. Financial Stability The applicant must have the financial means to con- duct the gambling operations. They need to submit audited financial statements (if an existing business), detailed financial projections, and proof of financing for start-up costs. Often a requirement is to show a certain amount of unencumbered cash or guarantees. For a casino bid, this runs into hundreds of millions of rand; for a bookmaker, sufficient capital to cover operations and player payouts is needed. Business Plan A thorough business plan is required, covering the nature of gambling products to be offered, the target market, marketing strategy, and how the operation will comply with regulatory requirements (responsible gambling measures, security, and other things). Technical Capability Applicants must show they either have or can procure the necessary technology and expertise. For online betting, robust IT platforms, cybersecurity measures, and tested software (with certifications from testing
labs and the National Regulator for Compulsory Spec- ifications) are expected. BEE and Ownership Structure South Africa’s laws emphasise BEE in gambling. Most provinces mandate a minimum black owner- ship stake in any new gambling venture (commonly 26% or more). Applicants must detail their sharehold- ing structure and include BEE certificates or plans to meet the required ownership, management, and pro- curement targets. Non-compliance with BEE can lead to rejection. Probity of Key Persons All directors, significant shareholders (typically above 5% ownership), and managers must complete per- sonal history disclosure forms and submit to probity checks. This can be a substantial part of the process – each person’s employment history, references, fin- gerprints for criminal checks, tax clearance, and other things are reviewed. In Summary The application process is extensive and rigorous, often taking months to compile the required docu- mentation. Engaging with regulators for clarity and sometimes using professional advisers (lawyers and compliance consultants) is common to ensure all requirements are met. The high entry bar is intentional to keep out unsavoury elements and ensure only well- prepared, responsible operators get licensed. 4.7 Application Timing Timing varies from jurisdiction to jurisdiction, as the assessment and committee processes may vary slightly, but generally one may expect to wait any- where from 4‒12 months for an outcome of an appli- cation. For most licence types, one will be expected to advertise the licence application in both the provin- cial gazette concerned as well as local newspapers, allowing 21‒30 days (depending on jurisdiction) for potential objections to be lodged. Applicants should anticipate a long lead time and plan accordingly. It is advisable to engage with the regula- tor early (many boards offer pre-application meetings
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