CASINO SOUTH AFRICA Western Cape Gambling Board wins appeal on tax payable by casinos 1 year ago Szarlot Post Views: 409 The Western Cape Gambling Board has been successful in its appeal against a Western Cape High Court judgment regarding the assessment of gambling tax payable by casino licence holders Grandwest and Worcester casinos. The Supreme Court of Appeal (SCA) this week upheld an appeal over whether ‘freeplay credits’, used to bet in slot machines attract gambling taxes and levies, was payable to the Western Cape Gambling and Racing Board. In terms of Section 64 (1) of the Western Cape Gambling and Racing Act 4 of 1996 gambling tax is payable on taxable revenue. The full court of the Western Cape high court had held that freeplay does not form part of taxable revenue under the act. Freeplay refers to special non-cashable credits loaded onto card accounts that a group of gamblers known as the ‘most valued customers’ use when playing at their casino slot machines. These customers do not pay for freeplay. It is a gift or reward given by the casinos to their most frequent customers. It cannot be redeemed for cash. According to court papers, the dispute arose after the Sun International management arm, Sun International Management Limited (SIML) introduced a software system known as “BALLY” to its subsidiaries nationally. Grandwest and Worcester casinos are subsidiaries of Sun International (South Africa). BALLY is able to distinguish between freeplay and credits paid for in cash by a player. This allowed for SIML to exclude the value of freeplay when calculating gambling taxes in provinces where Sun International operates casinos. SIML sought approval from the Western Cape Board for the exclusion of non-cashable bets funded by the casinos. At the heart of the case was the interpretation of the language used to define the “drop” which is “the amount deducted from players’ slot accounts as a result of slot machine play”. The casinos’ interpreted the words used to exclude freeplay, essentially because the word “amount” in the expression “amount deducted from players’ slot accounts … ” means “amount of money” deducted from the players’ slot account. That, according to the casinos, refers to the players’ own funds, and excludes freeplay. They argued, in addition, that because they neither gain revenue nor derive any kind of benefit from freeplay gambling, it could have never been the intention to cause them to pay gambling tax on this. The board argued that there is no distinction in the act between gambling with freeplay and with players’ own resources. It maintained that the word “amount” referred to all the deductions made from the players’ slot account as players gamble on the slot machines. Judge Nambitha Dambuza found: “The interpretation of the ‘drop’ advanced by the WC Board is not only grounded in the language used in s 64(1) and the definitions in Schedule III and IV, it also accounts for the purpose. The fact that a licence holder makes no gain or derives no benefit from a game of play is irrelevant in the assessment of liability for gambling tax. The appeal is upheld.” Source: iol.co.za About Post Author Szarlot I am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry. See author's posts SzarlotI am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry. Facebook Twitter LinkedIn Email Print Tags: Casinos, South Africa, Sun International, Western Cape High Court Continue Reading Previous KAJOT will develop on the strong bases in Romania in years to comeNext Why playing international lotteries could be illegal More Stories ONLINE SOUTH AFRICA South Africa’s Online Gambling Industry Sees Major Developments in 2025 5 hours ago Samuel ONLINE SOUTH AFRICA NowNow Gaming partners with Hinterzimmer to deliver content across Africa 3 days ago Samuel EXPERTS SOUTH AFRICA How technology is shaping the future of online casino regulation in South Africa 6 days ago Samuel CASINO WORLD NEWS Novomatic praises ICE as an ‘outstanding success’ 6 days ago Samuel ONLINE SOUTH AFRICA Tom Horn Gaming partners with Aardvark Technologies to expand into South Africa 6 days ago Samuel LOTTERIES SOUTH AFRICA Two South African players win life-changing jackpots in Lotto Plus draws 1 week ago Samuel LOTTERIES SOUTH AFRICA Former Lottery Boss Is Fighting To Keep The Proceeds Of His Crime 1 week ago Szarlot EXPERTS HOT NEWS SOUTH AFRICA Online gambling crackdown in South Africa 1 week ago Samuel EXPERTS SOUTH AFRICA The Battle Over Online Gambling Regulations Heats Up Globally 1 week ago Szarlot ONLINE SOUTH AFRICA How South Africa Will Lead Online Casino Trends In Africa In 2025 2 weeks ago Samuel EXPERTS SOUTH AFRICA Compulsive gambling, addiction under spotlight 2 weeks ago Samuel ONLINE SOUTH AFRICA From casinos to smartphones – the big shift in South Africa’s gambling market 2 weeks ago Szarlot Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ This site uses Akismet to reduce spam. Learn how your comment data is processed.