SOUTH AFRICA Law and Practice Contributed by: Wayne Lurie, Lurie Inc
11. Enforcement 11.1 Powers
The idea is to ensure the public is reminded that gambling has risks and help is available. • Enforcement of restrictions – the ARB can order the removal or amendment of ads that violate these restrictions. Provincial boards can sanction licensees who persistently flout advertising rules (eg, by fining an operator who persists in sending misleading SMS promotions). 9.5 Sanctions/Penalties Distasteful or inappropriate advertising is generally the subject of takedown notices from the ARB but, in more serious cases, including disobedience insofar as advertising compliance is concerned, the general sanctions under the respective gambling statutes can extend to fines of up to ZAR10 million or even incar- ceration. 10. Acquisitions and Changes of Control 10.1 Disclosure Requirements Disclosures are generally required in the circumstanc- es described in 10.2 Change of Corporate Control Triggers and are of the same level of detail as required in brand new applications (insofar as the new acquir- ers are concerned). 10.2 Change of Corporate Control Triggers Generally, any acquisition of financial interest over 5% triggers a post-transaction reporting and filing of detailed disclosures apropos the acquirer. The time- lines for the filing and fees for the same vary from province to province but are fairly modest. 10.3 Passive Investor Requirements If the passive investment amounts to either a direct or indirect acquisition of more than 5% of the direct or indirect interest in the licensee, the filings referred to in 10.2 Change of Corporate Control Triggers are still required to be made.
All of the gambling statutes stipulate potential criminal conviction and sanctions for breaches of their provi- sions, where, via the criminal justice system, offenders might receive substantial fines of up to ZAR10 million and face custodial sentences of incarceration of up to ten years. Where regulators generally lack teeth is that their enforcement is usually dependent on the co-opera- tion of the over-stretched South African Police Ser- vice together with the National Prosecuting Authority. Gambling regulators are often frustrated in obtaining this co-operation from the police and prosecuting authorities, both in minor instances and in more com- plex cross-border infringements that might require international co-operation and liaison such as in cases of illegal online gambling. Via exchange control and banking legislation, there are provisions aimed at consumers using their bank- ing instruments, such as credit cards, to bet online and offshore illegally; unfortunately, some of the more successful enforcement has occurred via these chan- nels and has been directed at (often unwitting and ignorant) individuals versus the illegal operators them- selves.
11.2 Sanctions See 11.1 Powers . 11.3 Financial Penalties See 11.1 Powers . 12. Tax 12.1 Tax Rate by Sector
The land-based gambling industry is taxed according to licence on a table that may be obtained from the relevant regulator, and it does vary from regulator to regulator. Generally, casinos are the highest taxed with an average of 10–15% on GGR. The tax rate in the online betting industry is generally a total of 6.5%.
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