South Africa bans online betting platforms from offering casino games
The National Gambling Board (NGB) in South Africa has clarified that the recent ruling that online sports betting platforms cannot offer roulette in Gauteng unless they carry a casino licence now applies to all districts in the country. This follows a ruling by the Supreme Court of Appeal that bans betting platforms from offering casino or interactive games in South Africa.
According to the NGB, per MyBroadBand reports, it backed the Supreme Court’s ruling and noted that the judgment is effective and bans online sports betting services from offering casino games through their platforms. It noted that the ruling in the Gauteng Gambling Act now has implications for all bookmakers across the country.
“The Supreme Court held that, in terms of the Gauteng Gambling Act, it is unlawful for bookmakers to offer fixed-odds bets on the outcome of a casino game, including the game of roulette,” it said.
The gambling regulator noted that the judgment has further clarified the country’s regulation and approach to casinos and betting as separate modes of gambling.
In its terms, it noted that “betting” refers to games like sports betting. In contrast, interactive gambling refers to playing casino games like roulette, blackjack, and poker online.
“Therefore, the NGB calls on all bookmakers who engage in this practice of offering casino-style games as their source of contingency betting to refrain from such practices and comply with the applicable laws,” it added.
In addition, the regulator’s acting CEO, Lungile Dukwana, called on all provincial licensing authorities to monitor their respective licensees’ compliance with the law and licence conditions. It stated further that the law empowers NGB to withhold winnings associated with illegal gambling activities.
“Interactive gambling is unlawful, and any person or entity offering such games is engaging in unlawful gambling operations. Winnings emanating from interactive gambling will be isolated and confiscated in line with section 16 of the National Gambling Act,” he said.
Notably, the board stated that the National Gambling Act imposes criminal sanctions for anyone who acts in contravention of the law. According to the board, this includes imprisonment not exceeding ten years or a fine not exceeding R10 million (~$585,000) or both.
Also Read: South Africa’s online betting boom is pushing casinos to the edge.
Betting platforms in South Africa are under strict regulation
According to the NGB’s annual reports, online sports betting platforms have become a significant revenue source for provincial authorities, with turnover from betting now exceeding that of casinos by a substantial margin. The reports revealed that South Africans raked in R1.14 trillion (~$67 billion) through gambling during the financial year that ended on 31 March 2024.
During the year, gross revenues from gambling reached R59.3 billion (~$4 billion), with 60.5% attributed to betting, primarily online, on events like horse racing and sports. Another report by The Outlier revealed that the money spent on betting has been increasing since around 2021.
With this surge, South Africa is regulating that space for proper coordination.
The NGB said licensees are required to operate and must be strictly within the parameters of their licensed gambling mode. It explained that South Africa does not permit interactive gambling, while the betting sector is permitted to offer its fixed odds betting through online platforms.
“The authority to accept bets online by betting licensees is not intended to extend to interactive gambling as this remains unlawful in terms of section 11 of the National Gambling Act.”
The board mentioned that by offering online casino-type games, some betting operators are operating as casinos, which is against the law. NGB stated that the act is both unlawful and an unfair practice, as licensed casinos are prohibited from offering similar casino-style games online.
On the other hand, gambling has generated substantial additional tax revenue for the provincial governments that issue their licences. The NGB report shows that the Western Cape earned over 30% of tax revenues from gambling, totalling almost R1.6 billion (~ $85 million) during the year ending March 2024.
Gauteng was in second place with R1.15 billion (~$67 million) in taxes collected (23.8%), while Mpumalanga was third with nearly R890 million (17.8%, ~$52 million) and KwaZulu-Natal fourth with R734 million (15.2%, ~$43 million) collected.
