Consumers need to be properly educated on the legalities and implications of the various gambling platforms, as laws governing online gambling are complex, says LottoStar, a fixed-odds betting site, operating in the South African market.
While online gambling in SA remains illegal, there has been a proliferation in recent years of Web sites offering such services, says the company.
However, it adds, few South Africans realise that by using these sites they too are breaking the law and could face prosecution, in terms of Section 11 of the National Gambling Act. The Act prohibits a person from engaging in, or making available interactive games, except as authorised in terms of the law.
According to LottoStar CEO Tasoulla Hadjigeorgiou, there are certain exceptions for bookmakers who are authorised to use online platforms. "Any legal bookmaker, offering sports and fixed-odds betting, who has an issued licence from a provincial gambling board, has the right to operate an online site as well.
"The fact is that many of the Web sites that South African consumers are using simply do not comply with this law, which means the gamers making use of these services could face prosecution themselves."
The Casino Association of SA (CASA) says much of the illegal online gambling activity is being run from Internet caf'es and places known as "entertainment lounges", which the association says are mushrooming in SA.
"The concept behind these illegal gambling establishments is that they offer access to online gambling platforms which are outside of SA, as many sites offer the ability to transact in South African currency," adds Hadjigeorgiou.
"If the site being used is illegal, not only is there no guarantee that someone may obtain their winnings if they do hit the jackpot, there is also no recourse as these sites are not registered, monitored or subject to the laws of SA."
A PwC survey found gross land-based casino gambling revenue totalled R16.5 billion in SA in 2013. With CASA estimating 5% of all gambling spend is being channelled towards illegal online gambling, this demonstrates the huge scale of the problem, notes Hadjigeorgiou.
"The laws surrounding online gambling are complex for most consumers to understand and they simply may not know they are breaking the law by using certain Web sites.
"It is crucial that stakeholders work together to find solutions to ensure consumers are properly educated on the legalities and implications of the various platforms currently available."
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