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Casino Enterprises, which is licensed in Swaziland, had advertised its online casino in Gauteng, prompting the prosecution. It argued that gambling on the site could not be unlawful under either the NGA or the Gauteng Gambling and Betting Act, because the activity did not take place in South Africa; it took place where the server was located.
Clearly, this is a fundamental issue for the industry. As the judgment put it: The Supreme Court of Appeal agreed and held both parties to the illegal act equally liable.
The government has since relied on that clarification of the existing law, but failed to enforce it. The result is a cat-and-mouse game, in which the authorities keep their claws sheathed, while the gambling websites hide in plain sight, trying not to be noticed, or hoping to become such a familiar part of online commerce that they are accepted by default.
Cleverly, the casinos present a united front, so that gamblers are reassured by the obvious presence of an entire industry surrounding and supporting individual sites.
Websites such as playcasino. They offer one-click access to offerings for all technologies and tastes, backed up by reviews, payment information and guides for first-time users.
A random sample of the most popular sites put to the test on the website monitoring service Check-Host check-host.
The websites even address the legality issue head-on by publishing statements that purport to provide clarity for the confused would-be gambler.
Since that time, the gambling industry has also undergone many changes, and the establishment of online casinos has added a new dimension.
These online casinos are highly reputable and offer safe and legal online gambling to customers in South African rands, and we suggest you give them a try.
Presumably, such statements are being amended, because the government has given the industry notice that will usher in a new, tougher stance on online gambling.
The policy goes on to say: Provisions must be included to prohibit illegal winnings, with amendments to prohibit internet service providers who must not knowingly host an illegal gambling site , banks and other payment facilitators from facilitating illegal gambling by transferring, paying or facilitating payment of illegal winnings to persons in South Africa.
There will be a clampdown on the advertising and promotion of online gambling, but the focus of the fightback by government will continue to be unlawful winnings.
Davies told the media that the Financial Intelligence Centre will work with financial institutions to verify and intercept online winnings.
Those who fail to do so may be held criminally liable, and winnings will be deposited in the Unlawful Winnings Trust. The land-based casinos 38 of them are, by any measure, the heart of the South African gambling industry.
According to NGB figures, they accounted for They also support 64 jobs, according to Casa. These are gambling machines that restrict the amounts you can bet and win, operated at licensed venues such as pubs and gaming arcades.
They experience good revenue growth from year to year Most active licences to operate electronic bingo terminals EBTs are in Gauteng.
They are a bone of contention for the casino industry, represented by Casa, which argues that EBTs are no different from casino slot machines, and yet may be operated without the infrastructure or social obligations of a casino.
Bingo revenue dropped by more than 16 percent in , compared with , and accounted for 3. According to the gambling report produced by PricewaterhouseCoopers, betting on horse racing still outstrips all other sports betting in , R1.
This is your only legal option if you want to use an online platform to place bets. The legitimacy of this type of gambling rests on the fact that the internet is merely the medium of communication; the outcome of betting is decided elsewhere, in the real rather than the virtual world.
The combined sports and horse racing betting industry grew in revenue terms by almost Lottery ticket sales in the financial year amounted to R4 million, down from R4 million in Buying overseas lottery tickets is illegal, but you can take online bets on the results of certain overseas lotteries, such as the EuroMillions, through the relatively new website Lottostar www.
It has been operating for two years and has paid out R million in winnings, according to spokesperson Maria Pavli.
If South Africa has been ambivalent about online gambling, so have many other countries, judging by the variety of solutions around the world.
South Africa is not alone in outlawing it — Russia, China, the Netherlands and Switzerland, among many others, do — but other countries restrict it in all sorts of ways.
Australia allows and taxes operators of casino websites, but prohibits their use by its own citizens, while the United States has a federal ban on all gambling including sports betting , but allows the individual states to permit it within their borders as four of the 51 states do.
The United Kingdom has a permissive approach, but was forced to introduce licensing for websites both inside and outside its borders, so that it could claim its share of tax on their profits.
Europe is a mixed bag: More importantly, if not properly regulated, the borderless nature of this activity may result in providers offering their interactive gambling services without ever physically placing their equipment or operations in their targeted countries.
These safe havens are driven more by the financial reward of serving as hosts to interactive gambling providers than by being a flourishing market for this type of gambling.
This creates challenges for countries whose citizens are lured onto the websites of interactive gambling providers situated or licensed in such safe havens.
Realising the burden of carrying the costs of problem gambling while safe havens earn licensing and taxation fees, countries with discernible markets for interactive gambling have had to pronounce their legal position regarding this recreational economic activity.
Such legal positions vary from prohibition to restriction or liberalising interactive gambling. In South Africa, at least five percent of spending on gambling is being diverted to illegal websites, according to a guesstimate by Casa.
Alternatively, you must legalise it and have proper regulation. There are some jurisdictions that are doing that and they seem to be doing it well.
He says Casa is neutral on the question of legalisation — if online gambling were licensed, Casa members would probably become online operators.
There are always pros and cons of gambling online, and some of the controls that we have in a land-based environment are not there in a virtual environment.
They are unlicensed, use software smuggled in from other countries and operate strictly in cash for as long as they can get away with it.
Despite the economic benefits of a legal and taxed gambling industry and the pressure the government has been under to bring illegal but popular forms of gambling into the regulatory fold, the government has been unable to shake off its concerns about the social implications of online gambling.
Online casinos accepting South African players offer impressive portfolios of slots, table games, video poker games, card games, specialty games, and others.
Many of these games are available in the fun play or practice mode, enabling players to play for free. These casinos also offer free cash bonuses and free spins on featured slots as part of their promotions, and players only have to stay alert enough to grab them.
The internet is literally packed with online casinos that cater to the requirements of South African players. The best online casinos accepting South African players offer online casino games that appeal to the South African audience, run lucrative promotions designed for South African players, and offer customer support that includes toll-free numbers for South Africa.
As far as online casino gaming is concerned, South Africa is a grey market. Betting on sports is the only legalized form of gambling in the country.
However, it is worth noting that there is no law that makes it illegal for individual residents to sign up and play at the hundreds and thousands of offshore online casinos that accept South African players.
So far, the government of South African has not penalized any of its citizens for doing so. This leaves South African residents free to sign up at any offshore online casino of their choice and play their favorite online casino games for real money.
It is, however, illegal for gambling companies to operate online casinos within South Africa. South African players usually want to know if it is safe to play at offshore online casinos.