South Africans Can Be Fined for Online Gambling

October 20, 2010 | News Category: Gaming Law

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South African Internet Service Providers are finding themselves in a difficult position, although they are not the only ones. The South African online gambling laws have now declared online gambling to be illegal, although it had seemed some time ago that the country was going to regulate online gambling, and that it was just taking some time until things fell into place.

However, with the ruling coming down the from High Court in August earlier this year, essentially, online gambling has been banned in South Africa, and the courts have made Internet Service Providers into a group that is supposed to help prevent online gambling.

This is not the first country to do this, however, the South African Internet Service Providers have stated that they are not there to act as Internet police, and that it is not their role to prevent online gambling sites from using their services.

The court, however, disagrees, and has informed the Internet Service Providers that their companies can be fined up to R10 million, which is the equivalent of roughly one million Euros. The South African Internet Service Providers have claimed that in order to 'police' the Internet for online gambling sites, would cost them huge amounts of money, possibly requiring an investment of millions of Rands in order to create new infrastructure.

It is not only the Internet Service Providers that are being held responsible by the High Court when it comes to blocking online gambling sites. Those that could be involved in online gambling in any step along the way are also being held responsible to bring it to a half. The list of those who can be held responsible for allowing Internet gambling in South Africa, and are therefore open to being fined, just as the Internet Service Providers are, begins at the top, and moves down to the individual.

Included in the list of those who would be breaking the law by allowing, or participating, in online gambling are the Internet online gambling operators themselves, for whom offering online gambling is obviously illegal according to the August ruling. Any persons, or organizations, that facilitate online gambling in any way, which includes the Internet Service Providers, and also any financial providers, such as banks, or online payment processing services, are also breaking the law if they continue to offer these services to those using them for online gambling. Finally, the players themselves will also find themselves on the wrong side of the law if they continue to gamble online.

It is expected that there will be an appeal of this ruling, however, it has not yet been scheduled.