Online Casino South Africa Law
Several international online casinos are still offering their services to South Africans despite a ruling towards the end of last year making online gambling from within the country illegal.
OVERVIEW OF SOUTH AFRICAN ONLINE GAMBLING LAW Since before South Africa became a republic, gambling in most forms was banned. While the laws have changed significantly, it is certainly not a free for all, however, gambling in and of itself is no longer illegal. Gambling in land-based establishments in South Africa is legal and regulated. South African casino players can enjoy the opportunity to play at a range of licensed, regulated and legal online casinos that cater specifically to their South African clientele. Players may be responsible for disclosing any winnings for tax purposes.
ITWeb found several sites that were easily accessible from within the country, and that advertised their offerings to a local audience, while some indicate they accept bets made in local currency.
However, in terms of a ruling handed down in September, online gambling, as well as advertising the practice, is illegal. The Supreme Court of Appeal decision settled once and for all the question of where online gambling takes place.
Swaziland-based Casino Enterprises, operator of Piggs Peak Casino, Piggs Peak Poker, Piggs Peak Bingo and Volcanic Gold Casino, had appealed a North Gauteng High Court ruling that declared online gambling illegal.
The operator lost its bid to have its operations declared legal in SA, in the landmark judgment handed down in the Bloemfontein Supreme Court of Appeals. The site has since ceased operating in SA.
Some sites such as Piggs Peak and African Palace Casino detect when a punter is trying to access the portal from a South African IP address and block them from gambling. The notice displayed by Piggs Peak clearly indicates punters can “only access our gaming software and Web sites from outside the borders of SA”.
African Palace Casino suspended all activity for South African customers from 20 August 2010, which was when the North Gauteng ruling banning gambling was handed down.
The site notes: “We no longer accept registrations, deposits and wagers from players with South African IP addresses.”
Game on?
However, a plethora of gaming portals can be found through a quick search on google.co.za. Limiting the search results to local domains brings up several Web sites that advertise links to international online casinos.
Gambling is a multibillion-rand industry locally; punters waged R215.8 billion in the year to March 2010 and government earned R1.6 billion in taxes from the official sector, according to the latest figures from the National Gambling Board. Globally, online gambling is worth about 7% of the physical industry.
Among the sites offering punters an opportunity to gamble is Silversands.com, which was easily accessible from a local IP address. Its Web site has a currency option, which offers punters the opportunity to play in rands.
Casinos In South Africa
Silversands did not respond to a press query around its South African operations and why its site was easily accessible despite the recent ruling. A HelloPeter.com complaint lodged on Friday indicates that at least one punter gambled more than R20 000 during December. Two other complaints were lodged during December.
Another online gambling site, Casino.com, has a dedicated local Web site: Casino.com South Africa. The Gibraltar-licensed casino also offers gamblers the opportunity to transact in rands. It did not respond to ITWeb's queries.
Other Web sites, such as Casino Las Vegas and City Club Casino, are also easily accessible and advertise their online casinos through locally-registered domains. Neither of these sites responded to requests for comment, and ITWeb also unsuccessfully attempted to e-mail Vegas Red for comment.
ITWeb did not test whether it was actually possible to place a bet on these sites, as that would be an infringement of the law.
Risky business
Alicia Gibson, member of AG Consulting and a lawyer specialising in gambling law, says online casinos that are marketing their offerings to the local market and allowing punters to place bids in rands are breaking the law.
Online gambling was set to be legalised after legislation was passed by Parliament in 2007. However, no licences were ever issued and the regulations, published for comment in 2009, were not supported by Parliament's Trade and Industry Portfolio Committee.
The Department of Trade and Industry subsequently set up the Gambling Review Commission to investigate the entire sector. It recommended that online wagering be made legal, and more than 10 licences issued.
However, the current framework is unlikely to be changed for at least another two years, due to the lengthy processes required.
Gibson says, even if online gambling is legalised, these sites probably will not be able to successfully apply for a licence as the regulators may deem the operators to be unsuitable.
A press release issued by the Department of Trade and Industry, after the Piggs Peak ruling last year, says: “We are resolute that all illegal gambling activities that take away opportunities for the country to generate revenue and subject punters to the risks of gambling without security will be shut down, and all persons and entities found to be offering the RSA public such unlawful activities will be blacklisted and denied opportunities to operate lawfully in the country.”
Currently, says Gibson, there is no provision in the law to stop companies gambling illegally from receiving licences. However, if any of these casinos are convicted in the 10 years leading up to legalisation, they will not be able to apply for a licence.
Although there are no numbers indicating how widespread the illegal practice is, Gibson says there are likely to be quite a few such sites. “It's obviously worth it.”
However, the Gauteng Gambling Board previously warned that punters who gamble illegally face the risk of having their winnings forfeited to the state. In addition, anyone found guilty under the current law faces 10 years behind bars, a R10 million fine, or both.
ITWeb unsuccessfully attempted to get comment sites from the National Gambling Board this morning. However, the body previously said it has several cases in the pipeline, but was waiting for the Piggs Peak appeal decision before moving to prosecute any of the illegal sites.
Ever since the implementation of South Africa’s Gambling Act of 1965, gambling in South Africa has experienced some major changes. These changes have affected the operations of the country's online casino industry in the country. In the National Gambling Act of 2004, online gambling was outrightly banned in South Africa. This was further clarified in the 2010 update if the act, that online gambling within the borders of the country is illegal. Nevertheless, several South African players enjoy a good gaming experience playing in offshore casinos. This is because the law does not target players specifically but rather the online casinos offering the services. You can click here for top casinos used by South African players.
Most online casinos that target South Africa players are fully aware of the existence of the Gambling Laws. However, since they are not within the physical vicinity of the country, they are not too worried about the legal consequences of offering casino services to South Africans. Truth be told, regulating online gambling is a tricky business. For this reason, offshore gambling operators can easily provide players with a means to gamble online. However, when choosing an offshore casino, you need to ensure that such casino is licensed by a respectable gambling commission such as the Malta Gaming Authority, UK Gambling Commission or Gibraltar Gambling commission. You can check http://www.elmiraheightsfire.org/ for an explanation on online casino licensing.
Should I Be Worried?
When the 2004 National Gambling Act of South Africa was enacted, some offshore casinos seize operations in the country. However, most of the remaining offshore casinos targeting the country are still operational to date. There have been no issues regarding a player been charged for playing at offshore casinos. Although if an offshore casino is caught, it may have to face the penalty which is usually in the form of paying fines. As a South Africa player, there is no reason for you to be worried about playing in an offshore casino. However, you should keep up to date with the gambling laws to know if there are any changes. It is believed that the gambling laws of the country will accommodate online gambling in the future.
Why Is Online Gambling Illegal in South Africa?
Although the reasons for making online casino gambling illegal in South Africa is unclear, it is likely due to the common problems that are associated with it. Some online casino players tend to be addicted to playing casino games and this may affect their mental and physical state. Apart from that, it is not easy to control online gambling compared to land-based gambling. When it comes to legal gambling in the country, the national lottery is the most popular. Sports betting is also popular in South Africa and it is considered legal. Thus, many offshore online casinos targeting South Africa market also integrate sports betting to offer both casino and sports betting services to players.
Can I Enjoy All the Services of an Offshore Casino?
Online Casino South Africa Laws
As a South African player, you will enjoy all the service of an offshore online casino as long as it is licensed. This includes the wide variety of games provided by the casino, bonuses, payment options and customer service. Some offshore casinos even allow players to deposit and withdraw in their local currency, Rands. You will be able to access the VIP Reward programs, promotions and other benefits that the casino has to offer. We suggest that you should read reviews about an offshore casino before you go ahead to use it. This will give you an insight into what services it offers, how good their reputation is, and if it can be trusted.
Summary and Final Verdict
In this article, we have explained in great detail the legal landscape of online casino betting in South Africa. While the gambling law of the country clearly states that online casino gambling is illegal, there are still several ways to enjoy casino games with a rest of mind. You do not need to worry much about the legal implications of betting in offshore online casinos as there is no case recorded against a trespassing player till date. The gambling law is majorly directed towards casinos instead of the players. With current trends shaping online casino gambling around the globe, we expect that South Africa will soon allow online casinos to operate freely in the country.