Online Casino South Africa Law

Well, online gambling in South Africa is currently in a grey area and though there is a lot of legislation governing it, there are a few loopholes that make it open to interpretation. The rule states that it is legal to play at online casinos, as long as they are not based in South Africa. This is because it is illegal to open and run an online casino if the base is in South Africa. Meaning that you can gamble online, using other country’s online casinos.

Until relatively recently, online gambling law was quite a grey area in South Africa. The main reason for this was that the relevant laws and statutes covering gambling were not up to date in terms of these new forms of gambling made possible by the Internet. So online gambling and poker became popular among South Africans. The most well-known 'local' online casino, Piggs Peak (situated in the neighbouring territory of Swaziland), offered both online casino gambling and online poker to South African players. It flourished for a good few years.

Then the situation changed, as the spotlight fell on this hitherto effectively unregulated industry.

The South African government promulgated the National Gambling Act of 2004, which made it illegal to engage in what it termed 'interactive gambling services' and the offering or advertising of these services for South Africans. By 'interactive' the law refers to Internet games. This covers both casino games and poker games, whether offered by operators inside South Africa or outside of its borders. But there is an important distinction that is identified.

While online casino and poker games were made unlawful, online sports betting and online horse race betting were specifically made legal. This is as long as the operator is fully licensed by one of the South African provincial gambling licensing boards. So, for example, the most popular South African sports betting website, SportingBet, is fully licensed by the Western Cape Gambling Board and operates completely legally inside the country. It is used by thousands of sports bettors every day.

In the meantime, however, Piggs Peak continued to offer both online casino and online poker, effectively under the impression that online gambling offered from an offshore location was not adequately covered in the Gambling Act. They took this all the way to the North Gauteng High Court in an effort to get a legal stamp of approval on their services, but were ultimately unsuccessful and were forced to bar South Africans from playing.

In concert with this, South African banks do not allow bank accounts and credit cards to be used to transfer funds to online casinos. However, it is still possible to do so using online banking methods such as NETeller or uKash, etc.

At the same time it was – and still is – recognised that online gambling is a huge industry that attracts many South Africans, and that the problem is not so much one of whether it should or should not be legalised, but more one of how to regulate it. To this end the National Gambling Amendment Act of 2008 was drawn up with a view to bringing it before Parliament in order to have online gambling legalised and regulated. The amendment attracted a lot of opposition from land-based casinos, for many of the same reasons as the situation in America, where these casinos feared losing customers and revenue to their online competition. The fact remains, thought, that there is currently legislation on the books and quite possibly in the pipeline that will make online gambling legal for South Africans.

While the above is quite clear, there are of course plenty of overseas online casinos that offer online gambling to South Africans, and online payment methods that can be used. And there remains every possibility that online gambling will soon be legalised in the country, once the National Gambling Amendment Act of 2008 goes through Parliament and is signed into law.

Of course sports betting is fully legal for South Africans. At the moment betting on horse racing predominates, but as more sports betting websites emerge and broadband and mobile Internet access increases, this is likely to change, with a swing towards sports betting. South Africa is, after all, a sports mad nation.

Companies like PwC expect gambling activities and revenues to continue to grow, indicating that the country's appetite shows no sign of waning. And in the face of this, the legalisation and regulation of online gambling looks likely to follow shortly. This is especially buoyed by the realisation that in South Africa, as in the rest of the world, the most important factors are safe access and responsible gambling. Given that South Africans have ways of circumventing the laws, this becomes even more of an imperative.

In light of the widespread availability of online gambling and the Internet's ability to make national borders permeable, it appears to be in everyone's interests for the National Gambling Amendment of 2008 to become law, so that the industry can operate transparently, safely and responsibly for South African players. It has been reported by PwC that the South African government had plans to issue ten online casino gambling licences in the period around 2009, but this has obviously not happened yet. We await the next roll of the dice...

Since before South Africa became a republic, gambling in most forms was banned. While the laws have changed significantly, it is certainly not a free for all, however, gambling in and of itself is no longer illegal. Gambling in land-based establishments in South Africa is legal and regulated. For many years, South Africans traveled outside of the legal borders of South African in order to go to a casino. With the changes in the gambling law, this is no longer necessary. Online gambling in South Africa is still illegal at this time.

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SA'S GAMBLING ACT OF 1965

The South African Gambling Act of 1965 ruled gambling as illegal. Gambling, such as horseracing, was legal. The reason for this is because horseracing is considered a sport. In the 1970s, there were a number of illegal casinos created, with the number rising until there were about 2,000 illegal casinos in the mid 90s. Along with the change from a conservative government to a democratic one, the gambling laws were updated in 1994. At that time, gambling was legalised. In 1996, South Africa introduced a national lottery and regulated and licensed casinos.

CHANGES TO THE GAMBLING ACT IN 2004

In 2004, the 1996 Act was repealed, and the National Gambling Act of 2004 came into effect. While land-based gambling was still allowed, online gambling was no longer considered legal. Again, sportsbetting, even if it was done online, was still considered legal. While online gambling is illegal, the emphasis and main responsibility seems to lie with the gambling operators and the financial institutions. To date, no individuals have been prosecuted for playing at online casinos.

GAMBLING LAW TODAY

In 2008, there was an attempt to legalise and regulate the online gambling market in South Africa, however, since there was strong opposition, the Act has not yet been accepted as law. In 2010, the North Gauteng High Court issued a ruling that gambling transactions though both local and offshore operators is illegal. While both players and operators are fully aware of this law, there are still many casino choices open to South African players.

Online Gambling South Africa

Those who choose to play at online casinos should make sure that the casinos are safe and secure, and have a good reputation. Although the online casinos will not be licensed in South Africa, it is important to choose a casino that is fully licensed in a recognised gaming jurisdiction.

Online Casino South Africa

Many of the online casinos that still offer their sites to South African players will offer players the chance of playing in South African Rands (ZAR), and thereby avoiding exchange rate fees. Many casinos also offer a special Welcome Bonus or free money offer to those who are located in South Africa. In addition to this, players should keep an eye open for an online casino with top notch Customer Support team. Customer Support is available 24 hours a day, with many support teams offering a South African toll free telephone number.