3 Gambling laws in South Africa you did not know about
Africa is viewed as an emerging market for gambling and gaming, and in order to protect the African industry from mismanagement, the Gaming Regulators Africa Forum (GRAF) was established in 2003 for this purpose. GRAF is a body of gambling regulators within the African continent including South Africa, Botswana, Kenya, Malawi, Namibia, Mozambique, Tanzania, Zimbabwe, Swaziland and Zambia. Membership is open to all gambling jurisdictions on the African continent.
Their objectives include:
- Providing a forum where members exchange views and information and discuss policy on gaming matters.
- Keeping gambling crime-free and legal.
- Promoting responsible gambling.
- Contributing towards the enhancement of economic development.
- Protecting consumers and maintaining the fairness of games.
- Ensuring that African nationals benefit visibly from gambling.
- Promoting harmonisation and mutual recognition of standards.
- South Africa and its national regulator
South Africa forms part of its membership because gambling is legal in the republic. The South African government, in terms of its National Gambling Act of 2004, established the National Gambling Board (NGB) to regulate the gambling industry in the country including online gambling. The NGB is the highest authority in the gambling industry and works with provincial gambling regulators to ensure all players are treated fairly. All the best online casinos South Africa including bookmakers such as sportsbooks, must be licensed by a provincial gambling regulator and regulated by the NGB.
Did you know that even though the NGB has existed for nearly two decades in South Africa, there are still gambling laws that most citizens are unfamiliar with? Below we discuss three gambling laws that many stakeholders in the industry are ill-advised on, and we provide detail on some of the features in the industry.
Law 1 – South Africans are not allowed to gamble at overseas online casinos?
According to the gambling laws, ‘’South Africans cannot gamble with international companies from within the Republic.’’ Unfortunately, even though the law prohibits South Africans from playing at overseas online casinos, some players still illegally signup at these casinos. The NGB and provincial regulators are in no position to help players if something goes wrong and some risks of playing at illegal unlicensed overseas online casinos include deposits not reflecting and going missing, withdrawals not being paid out, and personal information leaking to third parties.
Many players love overseas online casinos as they use various software providers and offer players an abundance of bonuses and promotions. Still, all local South African online casinos provide the same benefits to players.
The likes of Microgaming, Evolution Gaming, Pragmatic Play and Habanero play a key part in the industry, and the latest and best casino games are available at South African casinos. Honestly, there is no need for any South Africans to consider playing with overseas online casinos, as local operators like Betway and Hollywood Bets offer similar products. All regulated South African casinos provide players with diverse gaming libraries including Slots, Table Games, Live Dealer Games and Game shows with presenters. There are even additional betting products such as fixed-odd lotteries, sports betting, scratch cards and virtual sports.
Law 2 – Casino licenses need to be applied for in the province where you reside
All South African betting operators must be licensed by a provincial gambling regulator where it is located.
Below is a list of the provincial gambling regulators in South Africa:
- Eastern Cape Gambling and Betting Board
- Free State Gambling and Liquor Authority
- Gauteng Gambling Board
- KwaZulu-Natal Gaming and Betting Board
- Limpopo Gambling Board
- Mpumalanga Economic Regulator
- North West Gambling Board
- Northern Cape Gambling Board
- Western Cape Gambling and Racing Board
Players should be cautious if they access an online casino or sportsbook and do not find any information about their gambling license on their site. This is a red flag, and you should immediately stop. Now that you understand the provincial regulators, you may wonder how exactly one obtains a license. Below we discuss the process of getting a gambling license in South Africa.
It is tough to acquire a license and there are strict protocols in place for online casinos to adhere to. Gambling licenses can only be applied for through a provincial regulator in a province where the operator resides. So, for example, if you are based in the Western Cape and want to open your own business as a bookmaker, you will need to apply directly through the Western Cape Gambling and Racing Board. The gambling laws in the country prohibit operators from getting a license as an online casino, but betting operators can get a bookmaker license, which allows them to provide South African players with sports betting and online casino products.
Each provincial regulator has their own application procedure and fees for gambling licenses and you can get more information on this by visiting the website of one of the nine provincial regulators in South Africa. Using the Western Cape Gambling and Racing Board as an example, any person/business wanting a gambling license must complete and submit a Request for Application (RFA). The RFA consists of documents that serve as the official application for obtaining a gambling license. A new license application fee is approximately R14 377 and an annual renewal fee of R2884.
Law 3 – Complaints are not submitted to the National Gambling Regulator
There is a common misconception among many players that if they have a dispute with a bookmaker or South African casino3, that they lodge a formal complaint with the NGB. However, the NGB does not deal with any disputes between players and operators and players should submit all complaints directly to the provincial gambling board/regulator.
Generally, disputes concern the settlement of bets and terms and conditions regarding bonus offers. If the player and operator cannot resolve the issue, the player must lodge an official complaint with the provincial gambling board/regulator. The dispute will be heard and an outcome determined. The legal costs of appearing before the provincial gambling board/regulator will be paid out of each party’s own pockets.
Another Key Fact – South African Regulators have been trained by the Nevada Gambling Institution
The African gambling industry faces various threats and GRAF was established to serve and protect all stakeholders in the industry. During the time of its establishment, various education and training courses were conducted for all members. One of these successful training events was done by the University of Nevada, and the training course took place in South Africa.
It provided 40 regulators from GRAF member States with additional education and technology training on various gambling concepts covering both online and physical betting. These included training on illegal gambling, cyber threats, anti-money laundering and mismanagement, as well as how to promote responsible gambling.
