DA wants to allow online gambling and it’s not the worst idea

Online gambling in South Africa is not permitted under our laws. To be clear, online sports betting is allowed, but gambling through digital means is not permitted. Yes there is a difference between sports betting and gambling under the definitions of our law.

However, as with most things, life finds a way and illegal online gambling is happening in South Africa, with fear of being caught and having your winnings confiscated be damned. There has been talk of permitting and then regulating online gambling, but those discussions haven’t lead to any action at all.

Now the Democratic Alliance (DA) wants to regulate online gambling in South Africa and it’s a good idea.

The political party writes in a media release that current legislation is ill-equipped to deal with the evolving gambling sector and as such, casinos are being left behind.

“Betting, which includes online gambling, has overtaken casinos as the largest revenue-generator for gambling operators, fuelled by Covid-19 restrictions and an explosion of online gambling and betting platforms. The National Gambling Board reported total gambling revenue of R59,3 billion in the 2023/24 financial year, with betting and online gambling rocketing to 60.9% of that and casinos declining to 23,9%,”

– writes DA spokesperson for Trade, Industry and Competition Toby Chance.

“These statistics are themselves questionable, due to the unregulated nature of the online (remote) gambling industry. Only with proper regulation, monitoring and tax administration will the industry contribute its fair share of tax revenue to the fiscus, at a time when government revenue is under pressure,” – he adds.

By failing to regulate it, the local sector is not only losing out on revenue, it’s also putting South Africans who want to gamble online in danger of being taken advantage of. Then, even if locals use a reputable platform, their winnings can be confiscated because of a draconian law. It makes even less sense when you consider that the same winnings at a physical casino would be perfectly legal.

The Remote Gambling Bill is, according to the DA, an effective way of regulating online gambling which would ultimately fill government’s coffers with more funds. These funds would come from gambling establishments operating online.

In addition the bill will provide:

• the regulation and licensing of remote gambling within South Africa;
• set uniform norms and standards for remote gambling activities;
• provide protection to minors and vulnerable persons;
• ensure compliance with the Financial Intelligence Act; and
• provide for provincial licensing of remote gambling activities.”

South Africa’s rules on the matter are quite restrictive.

“Operators offering or wishing to offer such gambling products and services to the South African public must be aware that they are committing an offence, and will be subject to criminal prosecution if detected. Punters are equally cautioned to avoid participating in any activity that is illegal, as such participation is also a criminal offence. A conviction for committing an offence in terms of the NGA can attract a fine of up to R10 million, or imprisonment of up to ten (10) years. Winnings derived from such activity will also be confiscated, and forfeited to the State,”

– reads an article penned by the National Gambling Board.

It’s an odd stance to take when online sports betting is permitted although we suspect that loses would be far less than somebody who gets hooked on a dopamine fuelled online gambling spree.

However, as we mentioned, just because it’s illegal doesn’t mean South Africans aren’t doing it. Regulation would go a long way to make sure that if locals want to gamble online they are doing so legally with a reputable company.

Source: htxt.co.za

About Post Author

Samuel

I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos.

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Samuel

I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos.