Ever since the Republic of South Africa escaped its apartheid regime and started the road toward democratization, its legislative landscape has been in constant flux. Statecraft is not an easy task, and diverse political and ethnic landscapes like South Africa make it particularly difficult to reach a consensus on particular matters.
Such is the case when we look at the state of gambling within this market context. The global market’s gradual yet spectacular shift toward the online sector is constantly penetrating every local market where technology becomes readily available. As such, it’s no wonder that even the South African gambling market reached over $800 million, projected for 2024, despite the somewhat underdeveloped legislation.
The fact of the matter is that online gambling remains a contentious point for countless legislators across the globe due to the taxation potential factor and the protection of consumers. The current field proves that digital gambling carries enormous potential. Per Statista, the global market size for online gambling exceeded $290 billion.
South Africa stands at a crossroads, with underdeveloped legislation that still includes several key acts. This article will explore some of the key legislative roots of the current South African gambling laws, its most important active legislative measures, and if there are any relevant ongoing developments.
South African Gambling in Historical Context
Ever since the land has been subject to European colonization, gambling has seen numerous applied restrictions, including through formal means, going as far back as 1673. Whether by economic, social, or religious concerns, the truth is that gambling was never accepted as an official pastime.
Moreover, the seminal piece of legislation that basically crippled most legal gambling considerations in South Africa (horse racing being the only exception), the 1965 Gambling Act, served for several decades as an effective ban. Despite the opening of casinos in several bantustans during the latter half of the 1970s, their services weren’t available to South African natives.
This changed with the fall of apartheid and the democratization of the country. The first step towards the liberalization of the gambling market was another seminal act that created the legislative structure of the industry: the National Gambling Act of 1996.
Not only did the 1996 Act set up the National Gambling Board, but it also provided key definitions and denominations that cleared up the framework for gambling-related legality. This essential piece of legislation created the possibility of operating legitimate and licensed casinos spread across the provinces within the frame of 40 available licenses. A national lottery was another addition within legal limits.
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Key Pieces of Legislation Active Today
The current framework that dictates how gambling operations happen in South America is the National Gambling Act of 2004. Its role was a large one, serving as a repeal of the 1996 Act, applying Republic-wide standards, ‘retaining the National Gambling Board,’ and establishing a National Gambling Policy Council.
This Act is notorious primarily for the fact that it explicitly prohibits the provision of interactive gambling services and interactive games. Despite the explicit prohibition of casino games and their adjacent online casino free spins no deposit offers, sports betting is legal and serves as a lawful online gambling attraction.
2010 was another year when the efforts to cut off online gambling became irrelevant due to a judgment by the North Gauteng High Court. After a ruling in the Casino Enterprise v Gauteng Gambling Board case, this high-level precedent showcased that online gambling services provided by servers outside South Africa contravene section 11 of the 2004 Gambling Act.
Proposed Projects and Their Prospects of Success
Factually speaking, reform through legislative modifications and expansions has been a topic of debate for quite a while. More than that, supportive legislation has been floating for more than 15 years to no avail.
The most famous example is the proposed Amendment Act of July 2008 that tried to bring interactive gambling (casino gaming) within legal foregrounds. Quite interestingly, its lack of support from the dominant party (the ANC), but not only them, has been in limbo ever since its propositions came to light.
Another attempt that is still relevant despite its current lack of traction is the B11-2024 Gambling Bill of 2024. Despite not mentioning anything about taxation, this new attempt would lead to the legalization of online casino gambling. Despite the waning power of the ANC and the rising tide of the online gambling industry, there’s no wind in the sails of this piece of legislation.
Closing Thoughts
Considering the high number of illegal or unlicensed online casinos that try to convince South African players to access their services, it’s no wonder that legislative measures would be more than welcome. However, the contentious nature of gambling and the overall political instability make it hard for any new piece of law-making to eventually open up the market to new legal horizons.
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Source: www.completesports.com
