The National Gambling Board is powerless to stop international online casinos illegally offering their services to South African punters, because the Internet is virtual and the board does not have any international jurisdiction.
Instead, the only action the board can take is to write letters to international regulators, and try and catch local punters out through its relationship with the South African Reserve Bank and the local banking association.
Early last month, ITWeb uncovered that, despite online gambling being made illegal last September by a Supreme Court of Appeal ruling, South Africans can easily access international casinos and place bets in rands.
Hands tied
National Gambling Board CEO Baby Tyawa says that, unless a casino's server is located in SA, the body cannot shut it down. “There is a lot of illegal online gambling going on that we are not aware of.”
The only recourse it has is to write letters to international regulators asking them to liaise with the operator to inform them that the body is compiling a blacklist, which may limit their chances of being awarded a licence if online gambling is legalised, says Tyawa.
The Gambling Review Commission has recommended that online wagering be made legal, and more than 10 licences issued. However, the current framework is unlikely to be changed for at least another two years, due to the lengthy processes required.
The challenge is that online gambling is virtual, and the National Gambling Board does not know where it is happening, says Tyawa. “We are the first to accept it's an impossible mission.”
Lost bet
Tyawa says the board attempts to track punters through its relationship with the South African Reserve Bank and the Banking Council of SA, which allows it to trace credit card transactions. However, sometimes the bids are hidden as “leisure” and cannot be traced, she says.
Since the decision was handed down, no one has been arrested for illegal online gambling, says Tyawa. Although penalties have been imposed, those for online gambling are lumped together with other illicit wagering, she says.
Punters who gamble illegally face penalties of up to R10 million, or jail time. In addition, they will forfeit any winnings if caught, says Tyawa. These winnings go into a trust account and end up back at National Treasury.
However, says Tyawa, the gambling board is set to launch an awareness campaign to inform punters that they will lose their winnings, and will work closely with other departments to cut down on illegal gambling, which can be used to launder money.
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