SOUTH AFRICA Law and Practice Contributed by: Wayne Lurie, Lurie Inc
6.3 Affiliates The issue of affiliates is dealt with by application of existing legislation. There is no uniform policy on this but the Western Cape regulator, for example, views these arrangements as “gambling-related contracts” between a bookmaker and a “supplier”. Each affili- ate arrangement must be approved by the regulator via its mechanisms and forms relating to this type of contract. Many licensed operators have affiliate programmes with terms requiring the affiliate to abide by local laws and refrain from certain tactics (like no target- ing minors, and no misleading claims). If an affiliate breaches these, the operator is expected to cut ties to avoid regulatory repercussions. Influencers and social media affiliates – a newer trend is social media influencers partnering with betting brands (a form of affiliate marketing). The ARB and the NGB are looking at restrictions here, such as ensuring content does not glamorise gambling irresponsibly. The author might anticipate guidelines that will effec- tively make affiliates follow similar standards to direct advertising. Affiliates represent a grey area where gambling regu- lation meets advertising oversight. They currently do not need a licence, but their fate is tied to the licensed operators they promote. Operators must keep affiliates in check to protect their own licences. With increased scrutiny on advertising’s role in gam- bling participation, affiliates might see more rules (via advertising codes) that they must follow or risk being cut out of the industry. 6.4 White Labels There are no provisions to deal with white labels as such, but this type of arrangement might conceivably be approached via the manufacturer licence pro- visions, where the content is brought in by or via a licensed manufacturer, bearing in mind the very broad scope that such licence affords. In addition, and allied to the concept of “gambling- related contracts”, there is specific provision for third- party content or “components” to be integrated into an existing offering by a manufacturer in the form of
from general dining areas and machines must be in line of sight of the bar or cash register for supervision. Changes to Premises If a licensee wants to alter the gambling area (eg, expand a casino floor, renovate and move tables/ machines, or, in a betting shop, change the layout), these changes often must be reported and sometimes pre-approved by the board. Major changes, like an expansion of a casino’s footprint or relocating a bet- ting shop to a new address, require a formal applica- tion for premises relocation. In the online space, as mentioned in 2.1 Online Gam- bling , the only licence type is effectively the book- maker licence, which might be obtained provincially from the respective regulator in the province where one has premises, dependent upon the availability of such licence “on demand”. If bookmaker licences are not freely available in the desired province, then potential applicants have the option of either waiting for a tender process or attempting to purchase one from an existing operator. 6. Online Gambling 6.1 B2C Licences In the event of a purchase of a licence by an acquirer, the purchaser is still required to apply to the regulator for approval of the acquisition of the licence, which is identical to the application for a new licence. 6.2 B2B Licences (Suppliers, Software, Etc) The primary B2B licence type is the manufacturer licence, which might be obtained provincially from the respective regulator, or nationally under the auspices of the National Gambling Board, albeit via the provin- cial regulator within the province where one estab- lishes or intends to establish a presence. The term “manufacturer” and the parameters of the licence type are very broad, with such licence permit- ting the manufacture, licensing, distribution, supply and maintenance of gambling equipment or devices including software for online betting.
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