SOUTH AFRICA Law and Practice Contributed by: Wayne Lurie, Lurie Inc
to guide applicants). Meeting all requirements meticu- lously helps evade avoidable delays. However, even a perfect application must run the course of inves- tigations and board deliberations, which inherently take time given the seriousness of granting gambling rights. 4.8 Application Fees Fees vary depending on licence type and jurisdic- tion, and potential applicants would be best advised to obtain the current fee schedules of the regulators concerned. In planning one’s fees, one should look beyond the fees payable to the regulator to those of the attorneys and consultants that an applicant will generally need to engage in applying for and maintain- ing a gambling licence. 4.9 Ongoing Annual Fees Much like the application fees across nine provinces and with certain national licence types (eg, national manufacturer), the renewals will vary but generally a licence holder might expect to pay roughly 75% of the original licence fee upon renewal annually. 4.10 Personal Licensing Key Individual Licences Provincial laws require that certain individuals in a gambling operation hold personal licences or have their suitability approved. These include casino key employees (eg, general managers, financial manag- ers, and surveillance managers), betting managers, bingo managers, and directors or officers of the com- pany. Often called a “Key Employee Licence” or “Cer- tificate of Suitability”, this ensures the person meets integrity and competence standards. Any person or entity that will own above a threshold (usually 5%) of a gambling licensee must typically be found suitable. Rather than a licence, they receive a certificate of suitability as a shareholder. The thresh- old is discretionary and can be effectively lower if it is clear someone can exert influence (eg, multiple family members collectively holding shares). Application Process The individual submits a detailed personal declaration form including employment history, criminal record check, credit record, assets and liabilities, and refer-
ences. They must also provide a police clearance. In some cases they are interviewed by the regulator’s investigators. The process is akin to a mini-version of a full licence probity, focusing on the person’s back- ground and any possible issues (like undisclosed offences, financial instability, or associations with disreputable individuals). Fees and Tenure There is usually a fee for processing a personal licence application and renewal fees periodically. Once granted, a key person licence usually requires annual renewal. If the person leaves the industry, the licence can lapse. Ongoing Obligations Personal licence holders are expected to uphold high standards. They typically have a duty to report to the regulator if they are charged with a crime, or if any situation arises that could affect their suitability. Regu- lators can discipline personal licence holders for not maintaining expected standards. All physical locations where gambling takes place must be approved by the provincial regulator con- cerned. For casinos, the site is typically specified in the casino licence (and moving a casino would require regulatory permission). For betting, bookmaker prem- ises licences are issued for each shop or outlet. Bingo halls and LPM sites also require site-specific licences or certificates. Suitability of Premises Regulators consider factors such as the location (is it appropriately zoned for business/entertainment, and not too close to schools or churches in a way that might encourage underage or vulnerable populations), the layout (eg, a bookmaker shop must have a clear separation between the counter and any non-betting areas, adequate floor space, and security features such as closed-circuit television (CCTV)), and safety (fire exits and capacity limits). For LPM sites, there may be rules like the gaming area must be separate 5. Land-Based Gambling 5.1 Premises Licensing Premises Approval
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