Piggs Peak Pulls Out of South Africa

September 05, 2010 | News Category: Gaming Law

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After the South African province of Gauteng banned online gambling, Piggs Peak, the Swaziland-based online casino challenged their right to do so. The owners of Piggs Peak, Casino Enterprises, claimed that online gambling was still legal in South Africa, even though the high court had passed a judgment making it illegal at this time.

The judgment passed by the high court was one that came about as a result of a court case between Casino Enterprises and the Gauteng Gambling Board. Although there was a decision taken in 2008, and stated in the Interactive Gambling Act, that ten online gaming operators would be allowed to get licenses to operate in South Africa, this has not yet been implemented. The reason the implementation has not yet taken place is because the Trade and Industry Minister, Rob Davies, still needs to approve the act. The Gambling Review Commission has been looking into the issue since last year, and is due to give their report this month.

Piggs Peak had at first decided it would continue to operate in South Africa, but has now ceased to offer their online gambling operations within the borders of South Africa. Operations Director, Lew Saul Koor said that pending a court appeal judgment, the cutoff time to cease operations was at midnight on Saturday.

Piggs Peak's lawyers advised the online casino operation to shut down their operations after the online gambling company lost the court case in the North Gauteng High Court. The court case was in part about whether the location is considered to be where the server for the online gambling operation is situated (in Swaziland) or if it is about where the person gambling online is situated (in South Africa.)

Not only is Piggs Peak banned from operating in South Africa at this time, but it is now considered to be illegal for financial institutions to facilitate online gambling transactions, as is the case in the United States in a similar way to which the UIGEA (Unlawful Internet Gambling Enforcement Act) works in the US. Since the high court ruling, it is also illegal for internet service providers to allow online gambling sites to operate within South Africa, and advertising online gambling is now also illegal in the country.

Even though Piggs Peak is trying to apply for leave to appeal the court's decision, Koor said: "We have been advised we should stop operating for South African players until the matter has been resolved."

Those players that have positive balances can cash them in by emailing Piggs Peak's support.