South African Province Warns Online Gambling Illegal

August 25, 2010 | News Category: Gaming Law

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South African online gamblers and online gambling operators have long been awaiting decisions regarding legislation and regulation of the online gambling industry in their country.

In a recent, and somewhat surprising move, the province of Guateng came out with a statement regarding online gambling. The Gauteng Gambling Board warned the media that online gambling in Guateng is illegal at the moment since no regulatory action has taken place at this time.

The national government in South Africa has long been debating and procrastinating where online gambling is concerned. Aside from the parliamentary debates, there have also been investigatory commissions, however, the law has not been affected, and there has been no official legalization of online gambling in South Africa yet.

Gauteng, apparently, has had enough of waiting for a national decision, and has taken the initiative on a provincial level with a decision being handed down by a North Gauteng High Court Judgment. On August 20th, Judge N. B. Tuchten handed down a decision regarding the jurisdiction of online gambling transactions in South Africa.

Essentially, Judge Tuchten’s decision makes local and foreign online gambling operators, who offer online gambling to South African residents, illegal. The same would go for those that play on these online gambling sites for real money.

As in other countries, the Internet Service Providers are also involved. The Business Times newspaper notes that ISPs can be held accountable for any online gambling sites that should be banned according to the ruling. Financial institutions are also considered to have broken the law if they process payments for online gambling sites.

Those who continue to gamble online, and those that offer online gambling, or aid it in any way, will find that they have broken the law, according to the Gauteng Gambling Board, and could be prosecuted for this breach of the law.

Those founds guilty of breaking this online gambling law, could face up to ten years in jail, or be given a fine of up to ten million rand, or could end up with both of these punishments.

Lucky Lukhwareni, the head of legal services at the Gauteng Gambling Board, has said that online casinos can now be prosecuted.

Mr. Lukhwareni told the Business Day: "That's why we approached the media, to alert them to the judgment which makes online casino operations illegal, and if they continue we will have them arrested and fight for conviction."

Mr. Lukhwareni also noted that help to facilitate online gambling, even if by simply advertising the service, can also result in prosecution.

The national government has made no comment at this time, although they may still legalize and regulate the industry.

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