How South Africa Regulates Online Gambling

The Gambling Regulators African Forum (GRAF) is a body of representatives of gambling regulators in Africa. Some of its objectives are to provide a forum for members to exchange information and views and discuss gaming policies, to keep gambling free from criminal influences, to protect consumers and maintain fairness in online casino environments, and to promote responsible gambling, among others.

As one of Africa’s biggest economies, the gambling market in South Africa is robust, worth around R32.7 billion in 2020. According to data on the NGB website, the South African government received R3.2 billion in gambling taxes and levies during the financial year 2021 – 2022, the same amount received in 2019 – 2020 before the Covid-19 lockdowns. 

South African Provincial Licensing Authorities (PLA) 

South Africa has nine PLAs, one for each of its nine provinces. Each PLA reviews applications for gambling licenses and grants licenses for casinos, betting, gambling, and racing. The PLAs also monitor regulated gambling activities within their jurisdictions and ensure that licensed operators comply with provincial gambling laws and the National Gambling Act of 2004. 

South Africa Online Gambling Regulation Facts 

Regulation serves the purpose of protecting operators, players, and governments. Well-defined gambling laws and regulatory frameworks protect players from gambling-related harm and unfair business practices by operators and boost state revenue through taxes. The regulation also prevents offshore online gambling sites from illegally operating in the regulated market.

All forms of gambling except horse racing were illegal in South Africa before 1996. The National Gambling Act of 1996 legalized gambling and created the National Gambling Board (NGB) to license, regulate, oversee, and coordinate all gambling activities in South Africa. Online casinos are illegal in South Africa, but online betting is a licensed and regulated activity with local bookmakers. 

Penalty for Illegal Online Gambling in South Africa 

According to Section 11 of the National Gambling Act, online gambling is illegal in South Africa. However, online betting is legal, provided you place bets with a bookmaker licensed in South Africa. The penalty for violating the country's gambling law is 5-10 years in prison or a fine of up to ZAR10 million or both.

Comprehensive Guide to Online Gambling Laws in South Africa 

Several South African industry groups, particularly land casinos, object to the legalization of online casinos because they think that online casinos threaten the existence of land-based casinos. The Remote Gambling Bill of 2014 attempted to license and regulate the online casino gaming industry in South Africa but failed. Although online casinos are illegal in South Africa, residents continue to gamble at online casinos licensed in offshore jurisdictions.

In 2022, the Democratic Alliance, the official opposition to South Africa’s ruling African National Congress, introduced a bill to license to regulate the country’s online gambling industry.

Current gambling laws in South Africa allow operators to offer online gambling services after obtaining a license from a PLA. However, South Africa does not have a proper regulatory framework at the national level, partly because of the failure of the National Gambling Amendment Act of 2008. 

The proposed bill has the same goals as the National Gambling Amendment Act of 2009. It will create a regulatory framework for licensing while permitting PLAs to review and grant online gambling licenses. In addition, it will provide for procedures regarding objections to grant licenses.  Besides introducing restrictions in gambling ad campaigns, it promises to protect vulnerable groups and minors from gambling-related harm. Finally, it will ensure the compliance of licensed operators with the Financial Intelligence Centre Act (FICA) of South Africa. 

Noting that online gambling is currently not a legal activity in South Africa, the Democratic Alliance said that the government is encouraging criminal activities and failing to protect the public by not regulating online gambling. 

Differences in Online Gambling Laws in Different Countries 

Online gambling laws differ from country to country, and here are some of the differences: 

• 93 countries are grey jurisdictions that neither authorize nor prohibit online gambling sites.
• Online casinos are banned in 39 countries. 
• 32 countries do not permit companies to offer online gambling services within their jurisdictions, but they allow their residents to gamble at offshore online casinos. 
• Online gambling is a licensed and regulated activity in 61 countries. 

Online Gambling Jurisdictions Worldwide

Online casinos go live after getting a license from an online gambling jurisdiction. However, all gambling jurisdictions are not equally respectable. Highly reputed gambling jurisdictions like Malta and Alderney grant licenses to well-known operators worldwide. Some are not strict about their licensing requirements, which makes them less trustworthy. 

Here is a list of the top gambling jurisdictions worldwide: 

• Malta
• Isle of Man
• Curacao
• Alderney
• Costa Rica
• Panama
• Antigua & Barbuda

Each jurisdiction has an appointed body that reviews applications for online gambling licenses, grants licenses, and regulates all the operators licensed in that jurisdiction. Since they grant licenses to operators of online gambling sites, they go under the name of licensing authorities. 

Operators seeking online gambling licenses need to satisfy a set of criteria, which vary from one jurisdiction to the other. However, the following requirements are common to all gambling jurisdictions: