The National Gambling Board (NGB) says while interactive gambling has emerged as one of the major forms of entertainment and recreation globally, no decisions have been made on the fate of the activity locally.
Parliament and the Department of Trade and Industry (DTI) recently held public hearings on proposed amendments to interactive gambling regulations, which would either regulate or prohibit interactive gambling - but no decisions have been taken.
Interactive gambling was provided for with the passing of the National Gambling Amendment Bill, in May 2008, after the initial National Gambling Act did not provide for interactive gambling in SA. The Bill was drawn up as part of government's plans to tighten regulations on interactive gambling and reduce offshore control.
In August, the Parliamentary Portfolio Committee on Trade and Industry requested that the implementation of the regulations on interactive gambling be delayed. Following the publishing of regulations for public comment in February, the department acknowledged that the legislation needed to be reviewed.
Taxing issues
According to the NGB, a study it commissioned in 2009 revealed that the overall gambling sector contributes just over 0.93% of the total income to the local economy, and over 0.9% of total formal employment.
The DTI and Treasury have proposed a Bill that will introduce a special tax on all interactive gambling activities. Operators with an interactive gambling site in SA will be liable for this tax, which is provided for in the National Gambling Amendment Bill. Operators will be taxed at a rate of 6% on their gross gambling revenue.
While trade and industry minister Rob Davies has supported the Bill, it is yet to be passed as local operators have raised concerns on the impact of the tax on their operations.
Security risks
The NGB, which is tasked with monitoring all licensed operators, will issue only 10 interactive gambling licences. All licences will be provided on a national level to operators that can prove they have a physical presence locally, and all financial transactions will also have to be located within SA.
Operators will have to comply with Financial Intelligence Centre Act stipulations, and this will provide a greater security risk, as they will be in possession of important personal information.
According to the Act, individuals have to disclose personal details, like their ID number and proof of residential address. Players will have to create an account linked to a credit card or cheque account and present a bank stamp, as no cash transactions will be allowed. A maximum of R20 000 will be allowed in the player's account.
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