SOUTH AFRICA Law and Practice Contributed by: Wayne Lurie, Lurie Inc
an application by the third party for a “certificate of suitability”, which is a lighter process than a full-blown manufacturer licence application that permits such provider to “shelter” under the licence of an existing manufacturer. This process is not considered ideal for several rea- sons and is furthermore being reviewed by the regula- tor as the origin of the process is over 20 years old and was originally intended for the integration of compo- nents in the land-based industry. Currently, South African law does not require ISPs to block access to unlicensed gambling websites. The idea has been floated, but not implemented. This means South African internet users can reach offshore gambling sites freely. It would likely take new legis- lation or regulations (and co-operation from ISPs) to institute IP (internet protocol) blocking or DNS (domain name system) blocking of such sites – something seen as technically and legally challenging (raising ques- tions of internet freedom). Payment Monitoring Local banks do sometimes flag and block transac- tions that appear to be gambling payments to over- seas entities, in line with exchange control regulations. The NGB in the past worked with the Reserve Bank to identify outgoing online gambling payments (credit card transactions to known gambling merchant codes) and have them stopped. Additionally, under the Finan- cial Intelligence Centre Act (FICA), banks must report suspicious transactions which could include large out- flows to gambling sites, or inflows from them. That said, there is no comprehensive payment blocking law in effect; it is more case-by-case and based on bank- The NGA allows (in theory) the forfeiture of unlawful winnings to the state. In practice, one method used has been that if an online gambler hits a big win and the offshore site tries to pay it into a South African bank, those funds can be frozen and seized with a court order. This creates a deterrent without needing 6.5 Technical Measures No Mandatory ISP Blocking ing discretion or existing financial laws. Enforcement via Winnings Confiscation
to block sites upfront. However, this reactive measure depends on catching the transaction.
7. Responsible Gambling (RG), Also Known as Safer Gambling (SG) 7.1 RG Requirements Age Restrictions No persons under 18 may gamble, and operators are obliged to verify age (ID checks at casinos and betting outlets; KYC processes online) and to clearly display “No Under-18s” signage. Allowing a minor to gamble is both an offence and a serious licence violation. Advertising and Marketing Conduct All gambling advertising must include responsible gambling messaging and the helpline number. Adver- tising must not target minors or vulnerable groups, and should not mislead about chances of winning. These requirements tie into RG by tempering the por- trayal of gambling (eg, ads cannot claim gambling is a way to solve financial problems). This is becoming a big focus of the ARB and the NGB. Self-Exclusion Programmes In terms of the NGA, the NGB has a responsibility to maintain a national, central self-exclusion database but this has not been implemented in over 20 years. Provincial regulators offer this function with varying efficiency, with some emailing out individual PDFs from time to time. The industry has recently formed a self-regulation body in the form of SAROGA (Safe And Responsible Online Gambling Association) which has an app-based national self-exclusion tool and data- base on its roadmap. Contributions to RG Fund As mentioned earlier, operators contribute financially (usually via a levy on revenue) to the South African Responsible Gambling Foundation (SARGF). This fund supports the 24/7 toll-free Problem Gambling Helpline, counselling services (free treatment for prob- lem gamblers and affected families), and educational campaigns. Paying this levy is mandatory, reflecting the industry’s commitment to fund harm mitigation. SAROGA is also currently offering free counselling of problem gamblers and has stated that an “appified”
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