South African Online Gamblers Have Been Warned

July 01, 2011 | News Category: Gaming Law

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For quite some time now, South African online gambling has been in the news. The country seemed on the verge of legalizing online gambling, and had in fact taken steps towards doing so making those inside and outside the online gambling industry fairly certain that there was only one step left to take in the legal process, and that that step was a given. However, that step never happened, and online gambling has not only gone from nearly being legalized and regulated to being illegal, it has gone from being a thriving new industry into one that is being cut down at every turn.

South Africa had made the decision to issue 40 online gambling licenses. These online gambling licenses would have created about 55,000 jobs, a rather large number of jobs that would be good for the economy and of course for the individuals who would have worked in those jobs. However, those in the industry, and those who had hoped to get into the South African online gambling industry, have now been warned that it is not at all likely that South Africa will pass any kind of legislation that will bring about legal and regulated online gambling within its borders.

During a press conference, Minister Rob Davies, the South African Trade and Industry minister noted that even though a number of online casino operators have decided to open their virtual doors in South Africa, that his ministry would not be pressured into legalizing online gambling, especially while he is the Minister of Trade and Industry. The Department of Trade and Industry, under Minister Davies' leadership, formed the Gambling Review Commission. Minister Davies made these statements while he was answering questions in a press conference that was set up to discuss the Gambling Review Commission's findings.

The report from the Gambling Review Commission noted that since land based gambling was legalized in 1996, the gambling sector may have remained relatively small, but is a "maturing sector" of the economy. Land based gambling in South Africa has brought in about 1.5 million Rand in taxation revenue for the country, and has created close to 57,000 jobs across South Africa.

South Africa now has legal land based casinos, horse racing, and lotteries, however online gambling has now been outlawed. Those who break this law could find themselves fined up to as much as 10 million Rand, and can be sent to jail for up to 10 years. One does wonder if this is simply a protectionist move to protect the land based gambling industry, or if the will of a few has simply been pushed onto all?