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SA's online sports bookies eye R800m

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 25 May 2012

South Africa's online sports betting market is currently worth about R660 million and is expected to grow to about R800 million over the next two years.

This is according to sports betting site, Ladbrokes.co.za, which entered the South African market in August 2011 after being granted a licence by the Western Cape Gambling and Racing Board. It targets sports like horseracing, rugby, cricket, football, golf and tennis.

However, the global betting company says unlicensed online sites operating illegally within SA are currently costing the government millions in lost tax revenue and are affecting the potential growth of legal online operators.

Anli Kotz'e, GM for Ladbrokes.co.za, urges operators of SA's online sports betting industry to establish an association that can promote best practices and standardisation.

“Sports betting is relatively new to the South African market, and although it is a highly regulated industry, an industry association will establish collaboration between licensed operators, regulators and our customers,” Kotz'e explains.

She is also of the view that government can implement a law for all non-licensed, foreign operators to block South African residents (South African IP addresses, physical addresses and payment options) from their sites, and if they fail to do so, legal action should be taken against them.

“In the same way, the US is currently implementing this. Also, the government can fine and/or take legal action against South Africans who play on non-licensed betting sites. The UK and Europe are good examples of areas where online sports betting is lucrative. If you look at companies like Bet365, Ladbrokes.com, Bwin, PaddyPower; their massive successes in fixed odds sports betting in both the UK and Europe are very evident.”

Gaming lawyer Garron Whitesman, of Whitesmans Attorneys, says that despite efforts by national and provincial gambling boards as well as local operators to educate the market, there is still great uncertainly among members of the public about the difference between online betting and interactive gaming in the local market, and which sites can be used legally.

The recent Piggs Peak decision, in the Supreme Court of Appeal, has put an end to the debate on interactive gambling, which includes traditional casino-type games and poker being offered online.

“According to the highest court in our country, these services may not be offered legally online to South African residents. Parliament is currently debating the creation of a licensing regime for these types of products and we are hopeful that this will come to fruition sooner rather than later,” says Whitesman.

“For now, however, the only traditional forms of gaming that may legally be offered online are sports betting with a locally licensed bookmaker or totalisator.”

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