Online gambling is still illegal in SA, and is set to remain that way until a commission has wrapped up its findings to present to Parliament.
In addition, there is no clarity as to what happens if South Africans win money offshore, and try to bring their winnings back into the country. The local gambling industry is worth about R212 billion, but the size of the online industry is difficult to quantify.
Nomfundo Maseti, the Department of Trade and Industry’s chief director of policy and legislation, says “online gambling is not allowed in SA at the moment”. She explains that there are no regulations in place to regulate the industry.
Maseti says South African gambling online are doing so illegally and could forfeit their winnings. “It’s a risk that they take… you’ve engaged in an illegal activity.”
However, the department does not have any information on how much is being won illegally in SA. ITWeb understands there are about 500 000 online gamblers in the country.
The Gauteng Gambling Board says Internet operators that offer online gambling to South African residents are operating illegally. Punters can be punished with a R10 million fine or 10 years in jail, based on a 2006 court ruling, it says on its Web site.
While online – or interactive – gambling was set to be legislated by the National Gambling Amendment Bill, this law has not yet been signed into law by president Jacob Zuma. The Bill was drawn up as part of government’s plans to tighten regulations on interactive gambling and reduce offshore control.
However, last August, the Parliamentary Portfolio Committee on Trade and Industry requested that the implementation of the regulations on interactive gambling be delayed so that the legislation could be reviewed. The department is now reviewing the entire industry.
