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Parliament to roll the dice on e-gambling

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 13 Jan 2015
Gambling could finally be legalised online, if the Remote Gambling Bill is approved by Parliament later this year.
Gambling could finally be legalised online, if the Remote Gambling Bill is approved by Parliament later this year.

The Remote Gambling Bill, which would legalise online gambling in SA, was re-gazetted at the end of last year, and is set to be tabled when Parliament reopens next month.

Democratic Alliance shadow minister of trade and industry Geordin Hill-Lewis - who initially gazetted the Bill as a private member's Bill, because it had been languishing in Parliament for some time - is optimistic the legislation will be adopted this time around. This is despite previous indications that government does not consider the legalisation of online gambling a priority.

Once the Bill is tabled in Parliament, it will be sent to the Portfolio Committee on Trade and Industry to be debated. "At least this will force government to engage properly around this argument. Up until now, the engagement has been very superficial and online gambling was not considered a priority, and this is a rather complex policy issue," says Hill-Lewis.

"We are offering government a possible solution, so I am confident that the Bill will succeed."

Hill-Lewis explains that previously, online gambling did not receive the support of provinces. "This time, we are proposing to split the licensing responsibility between the provinces and the National Gambling Board."

While the National Gambling Board would remain the umbrella body for issuing gaming licences, Hill-Lewis explains the proposed Remote Gambling Bill would allow provinces to play an active role in the issuing of gambling licences. He notes, while proper input from provinces would thus be included in the licensing of online gambling sites, keeping the National Gambling Board as the overarching licensing entity "saves us from having nine different jurisdictions".

The proposed law also aims to ensure the provisions of the Financial Intelligence Centre Act are adhered to, and protect the public and licensed remote gamblers from fraud, such as money laundering and the financing of terrorist and related activities.

Initial delay

The Remote Gambling Bill needed to be re-gazetted, Hill-Lewis explained previously, because the Parliamentary speaker argued too much time had elapsed since it was first released for public comment, and ruled it needed to be released for comment again.

"This delay was as a result of the offline discussions I was having with the Department of Trade and Industry (DTI) about the issue in an attempt to find a unified position," he explains. Four years ago, the Gambling Review Commission recommended online gambling be legalised as a matter of urgency.

"However, after several months, it became clear the DTI had not yet developed its own policy position and, if anything, favoured the prohibition of online gambling. I've, therefore, decided to press ahead with my Bill, and it will be tabled in Parliament in 2015." Following its re-gazetting at the end of last year, Hill-Lewis says the Bill attracted "a few" additional public comments, and is now ready to be tabled.

Legalising online gambling has the potential to add millions to the fiscus each year, based on figures from the physical gaming sector. Physical gambling was legalised in SA in 1996 and has since skyrocketed into a multibillion-rand industry, with turnover doubling between 2001 and 2009. In the year to March 2013 - the latest figures available - punters wagered R281.8 billion, the bulk of which was at casinos.

Stripping out winnings, the gambling sector made R20.8 billion in the 2013 year, and the state collected R2 billion in taxes.

Highlighting the dangers

Meanwhile, the Casino Association of South Africa (CASA) is currently running an education campaign around the consequences of online gambling. The campaign will run until the end of the first quarter of this year. It is designed to highlight the issues behind illegal online gambling, to warn and protect unsuspecting players, as well as to stress the consequences that operators and property owners could face if concerted action is not taken.

Themba Ngobese, CEO of CASA, states: "We've been tracking the incidence of illegal and unregulated online gambling as an industry and are very concerned at the growth in usage and operations which are targeting unsuspecting South African players. It may all seem like harmless fun to gamble online, but players are completely unprotected and operators are not registered or regulated to run a business in our country."

The campaign includes a combination of public relations, online, social media, radio and print advertising, and will provide information on various aspects of illegal online gambling. It also highlights the reality of a R10 million fine, or 10 years in jail, or both, for those caught and prosecuted for operating or playing illegal online gambling.

"Players need to be warned that if they win online, firstly, there is no legislation or guarantee that the operator will pay at all; and, secondly, any winnings will be forfeited by your credit card company to the state," says Ngobese.

Hill-Lewis says he supports the CASA campaign, as online gambling is currently illegal. However, he says this won't solve the problem of illegal online gambling. "Government does not have the capacity to deal with this problem, which is one of the best reasons why online gambling should be regulated and legalised."

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