Despite the landmark South African supreme court ruling against Piggs Peak Casino in 2012, a number of international casino operators still persist in marketing their services to players wanting to gamble in South African rands. Whilst there is likely argument – a legally unsound one in fact, that these online casinos aim to cater for non-South African residents who fall under an alternative jurisdiction, the fact that the transactions are taking place using South African currency (and most probably through the South African financial system) make them suspect.
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One of the biggest challenges in monitoring and controlling illicit online casino activity – both in South Africa and abroad, is law enforcement and national priority. Developing countries usually face a barrage of social issues including violent crime, rape and entrenched corruption and South Africa is no exception to this. In fact, with the recent bombardment of news about crime in South Africa, it is easy to infer why prosecution in the online gambling space has not been actively pursued, bar the Piggs Peak case. While the legal threat clearly exists, there is yet to be an established case against South African gamblers themselves.
Legal Online Gambling in South Africa. In terms of interactive gaming (online gambling), section 11 of the gambling act 2004 issued by the NGB still remains firm, it states that: “A person must not engage in or make available an interactive game except as authorised in terms of this Act or any other national law”.
The irony of the situation is that many South Africans find themselves attracted to land-based casinos in the country, largely because of the perceived safety and alternative entertainment opportunities they can find in a relatively secure location. Since these casinos are properly regulated and licensed by the state, players are free from risk of litigation and their winnings may be appropriated to their local bank accounts without any issue. Still, the convenience of gambling online for real money proves very enticing for many South African players, despite the risks which are often perceived not to have any credibility.
Unlike markets likes India, which face similar legislative challenges, the South African online casino market is actually a very lucrative one for the online gaming operators themselves. Along with Australians, South Africans represent some of the highest value online gambling players in the world. Even though funding online casino accounts can sometimes be challenging using South African credit cards or bank accounts, there is no shortage of e-wallet type options like MoneyBookers and NETeller that are easily accessible for local players.
So with few entry barriers, high value customers and a comparatively low risk of prosecution, international online gaming operators are unlikely to stop targeting the online casino South Africa market. If the South African government were wise, they would be best off implementing and enforcing online gambling regulation as soon as possible. Not only will it serve to control the online gambling and sports betting space, it is sure to generate significant tax revenue from licensing fees, online casino and personal player taxation on winnings. Until then, South African players will likely continue to flout the gambling law on the host of choices they have available to them.
With the shutting down of Piggs Peak to South African players, below is a sample of the more well-established international casinos that cater for online gambling in Rands that have happily taken on the local market demand:
If you have any doubt that this is just a small sample, you check out a more comprehensive directory of South African online casinos to see the full extent of what is available. Clearly the demand is there and is being amply met – the South African government had better get a move on with formal regulation with respect to making online casinos in South Africa legal and taxable… there is tons of money on the table for them.
There is no denying that the growth and popularity of online gambling within South Africa has exploded in recent years, and rightfully so, with Africa being such a large mobile centric market it was only a matter of time before established, predominantly land based casino’s turned their attention to offering convenient, fast and instant online gambling services to the South African players. The result of this shift has meant a flurry of top gaming portals and services from which local players can now pick and choose.
The question however on many players minds still remains:
Casinos In South Africa
“Is online gambling illegal in South Africa?”.
Our team here at Slotzar pride themselves on providing the most up to date and accurate information pertaining to the world of online gambling, so we scoured the net in search of the answers to put your mind at ease.
South African Gambling Regulations
First things first, let’s start at the very top, It’s good for you to know exactly who regulates the Gambling industry in South Africa. In South Africa we have in place a board known as the National Gambling board or NGB.
The NGB was started off the back of the passing of the 1996 National Gambling Act and really their main responsibility is to oversee the regulation and integrity of the gambling industry within South Africa, this includes the acts of evaluating and issuing of national licenses, compliance monitoring of these licenses, and the monitoring and detection of any unlicensed gambling activity. Now that we know who regulates things from a South African gambling perspective, let’s take a small step back to give you a bit more context.
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South Africa’s Gambling History
The best way to understand something is to go back to the very beginning right?. In South Africa this goes as far back as 1673, when gambling was originally restricted by the Dutch settlers. You’ll be pleased to know that things have progressed since then, slightly murky progressions but progression none the less. In 1965 things became somewhat more formal, the department of trade and industry officially released what is known as The Gambling Act of 1965, this piece of legislation pretty much banned all forms of gambling except for betting on horse racing, which is considered, and still considered to this day to be classified as a sport.
1970 arrived and this was really a defining year for gambling in South Africa, land based casinos suddenly started operating on the down low in the bantustans (also then known locally as the homelands), this included Bophuthatswana, Ciskei, Transkei and Venda.
At that point in time it was really just a bunch of small rooms offering a couple of slot machines, and seeing as there was such a racial divide in the country at the time no one really bothered to take notice. The amazing thing is that this very low key start suddenly caught wind and by 1995 an estimated 2,000 illegal casinos were believed to be operating within the country.
Democracy to the rescue
When South Africa established its democratic status in 1994, the Lotteries and Gambling Board published an interim report which expressed a view that “the Gambling Act, 1965 (Act No. 51 of 1965) that was currently in effect no longer reflected the true moral viewpoint of the majority of South Africans and that the Government shouldlegalise lotteries and gambling in the Republic of South Africa”, it was on the basis of this that the South African government took a decision to allow legalised, but regulated and licensed gambling in the country, legalised and regulated being the key words here.
The rise of the NGB
In 1996 South Africa looked to progress things slightly more and as a result they created a uniform structure and adherence of gambling in the country, the result of this is the National Gambling act of 1996which was officially passed, the act stated that a total of 40 licenses across South Africa’s provinces would be issued allowing casinos and a national lottery to legally operate, if they obtain the relevant license of course.
It was also at this time that the National gambling board of South Africa was created, with the purpose of supervising and regulating the industry.
Illegal Online Gambling
There is a slight plot twist though, in 2004 The national gambling act of 2004 was suddenly introduced and its position instantly replaced the original act of 1996, the basis of the new act was built on the idea of protecting the public against the adverse effects of gambling, it also looked at means to contribute to infrastructure development in rural communities and finally limit, control and monitor possible proliferation of gambling and illicit gambling activities in South Africa.
New slots free spins no deposit. The biggest change to this new act was the clause stating that Instant play no deposit bonus usa casinos. interactive gambling (or online gambling) was now officially recorded and subsequently deemed illegal by all means within the borders of South Africa.
South Africa’s current gambling status
2018 saw the final changes to the stance of online gambling in South Africa, certain clauses and sections stated in the National Gambling Act of 2004 were modified by way of the National Gambling amendment bill of 2018. The summary of the bill states that only sports betting is deemed to be legalised in South Africa, this includes horse racing.
Government at this stage also then took a decision to also allow legalized and regulated land based gambling in South Africa, given that the operated upheld the relevant license documentation.
In terms of interactive gaming (online gambling) however, section 11 of the gambling act 2004 issued by the NGB still remains firm, it states that:
“A person must not engage in or make available an interactive game except as authorised in terms of this Act or any other national law”.
There is a slightly grey area to the clause though, you see the act states interactive gaming may not be provided or made use of by any persons within the borders of South Africa, which is more focused on the online casino and less on the players themselves.
The grey area comes in that the government has no real means nor sufficient resources required to fully regulate the operations of all interactive gaming/gambling services marketed to South Africans, so the loophole is that many of these casinos will simply set up shop via offshore servers (the business is located outside of South Africa) and target South African players from there, this explains why many offshore casinos have continued to make available gambling services to South African players without any hassle.
The Verdict
Our verdict is simple, make sure to stick to the reputable, well recognised and track proven Casinos, there has only ever been one incident recorded regarding unlawful gambling activity and that was Piggs Peak casino out of Swaziland, so in our opinion you have very little to worry about if you are already playing or are looking to play online. If you are unsure though of who to trust then visit ourCasino reviews section for a full detailed breakdown.
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