Gambling activities have always been a hot topic in South Africa, and society has always swung from one extreme to another whether betting on sports and playing casino games should be legalized or the country needs to tighten its grip on them. While many people retain firm believers that the heavy restrictions that are already in place should stay, others favor the introduction of legislative changes because of the huge potential of the industry.
South Africa’s Current Legal Landscape
Gambling activities have been subject to strict control since 1673, and prior to 1996, all forms of gambling, except betting on horse races, were illegal. It is interesting to point out that wagering on horse races was exempted from the definition of gambling as it was considered a sporting activity.
The way the gambling industry of the country developed took a significant turn back in 1994 when a new democratic government assumed authority and repealed the blanket ban on gambling activities. The National Gambling Act was passed two years later, and it introduced the comprehensive licensing system of the country.
Under the provisions of the Act, the provinces were authorized to start issuing licenses to brick-and-mortar and interactive casinos. Additionally, the National Gambling Board was delegated the right to oversee the way gambling activities are carried out. After these legislative changes were given the nod, the gambling industry started to thrive, and land-based casinos began to sprout. The national lottery, as well as other forms of gambling also started to pick up steam.
The market was further liberalized back in 2004 when the National Gambling Act 1996 was repealed, and a new such was introduced. That being said, the online gambling industry did not see much of a change as interactive casinos remained illegal. In order for residents of the country to place their bets over the Internet, they were required to bet on sports using the services of operators that have a seal of approval in at least one of the nine provinces.
Back in 2008, lawmakers passed an amendment, which was expected to completely legalize online gambling activities. The problem is that this amendment is yet to be enacted, and the matter got even more complicated back in 2010 when the court ruled that overseas casinos cannot accommodate players from the country.
The Coming Development of The South African’s Online Gambling Industry
SA’s online gambling industry has been at a standstill for more than a decade as the Department of Trade, Industry and Competition (DTIC) is yet to introduce the legislative and policy framework of the online gambling industry. Needless to say, since no action is taken by the DTIC, this results in huge losses of both revenues and taxes, which is exactly the reason why experts insist that actions should be taken as quickly as possible.
Experts consider that the introduction of such legislative changes is much-needed, and they project that the online gaming industry will see an increase of around 12% in the next few years. It is interesting to point out that back in 2020, the online gambling industry of South Africa, which includes interactive casinos and sports betting platforms, generated approximately R8 billion. The industry is expected to continue to thrive, and as is the case in other parts of the globe, the growth is mainly driven by the widespread use of handheld devices.
Many experts have already voiced their concerns about the harmful effect South Africa’s anti-online gambling laws have on their economy. In spite of the fact that players are not allowed to use the services of offshore casinos, the number of such platforms that cater to the South African market without the needed authorization is heavily on the rise.
Apart from the missed employment and economic opportunities, it should be pointed out that the creation of a market regulation in South Africa and more especially the regulation of online gambling industry, will eliminate many risks players face while using the services of unauthorized operators.
In spite of the fact that the Gambling Review Commission, which was established in order to analyze the gambling industry, said that online casinos should be made available in South Africa, no such steps are made up to this point, which leaves players with no other option but to use the services of illegal betting sites.
