October 18, 2024

SA’s main opposition announces new bill to regulate online gambling

The Democratic Alliance (DA), South Africa’s opposition party, has announced a new bill aimed at regulating the online gambling industry. The timing of the bill is questionable, given that the news comes on the eve of the country’s national general election, set to take place on May 29, 2024. It’s a time when all political parties are seeking positive media coverage to attract more votes. So, is this bill an electioneering ploy? That’s the question most people are asking.

In South Africa, online gambling is legal and those of legal age can sign up at licensed South African online casinos and sportsbooks. Currently, the country has a gambling board, which has been operational for some 16 years.

The South African online gambling industry has been a hot topic over the last few days as the DA put forward a Remote Gambling Bill to regulate online gambling. This proposed new bill aims to transform the current legislature and calls for some radical changes which will enhance the industry.

Our article will unpack this new bill, discuss some of the key proposed changes, and provide some insight into the current framework in the country while also questioning the timing of this new bill. 

What does the new Bill say

The new bill was issued by DA Shadow Minister of Trade, Industry and Competition, Dean Macpherson.

The Bill aims to regulate the issuing of operating licenses to be controlled by the relevant provincial authorities, not the centralised national gambling board. The party wants procedures in place to deal with objections from issuing of licenses; the regulation of advertising related to interactive/ online gambling entities; and the protection of minors and vulnerable persons. It also wants to ensure compliance with FICA.’

A copy of the DA’s announcement is on its website, but we have included key snippets below. 

‘’The Democratic Alliance (DA), today, officially had its Remote Gambling Bill, 2024, introduced in Parliament after more than two years of drafting and consultations with industry experts. This initiative comes in response to the significant oversight by the ANC in failing to provide adequate protection and regulation within the online gambling industry.’’

‘’By not regulating this gambling activity, the erosion of the rule of law and criminal activity is being encouraged, while the public is not effectively protected as they are when using land-based gaming operations. At the same time, a lack of regulation is resulting in revenue worth billions of Rands and jobs being lost to other gambling jurisdictions.’’

SA already has gambling measures in place

The country’s government already has in-depth measures in place for the online casino industry to ensure the safety of casino players and the integrity of the industry. The first documented legislature was the National Gambling Act of 2004, which provided a framework for the industry while establishing the National Gambling Board (NGB). 

The NGB regulates the gambling industry, including online gambling. The NGB is the highest authority in the industry and works with provincial gambling regulators to ensure all players are treated fairly.

The Role of the NGB:

Ensuring uniformity, harmonization and integrity of the South African gambling industry.
To promote responsible gambling.
Monitor the socio-economic consequences of regulating gambling.
Research to better understand the size and shape of the industry.
Continue its work with the Gaming Regulators Africa Forum (GRAF).

Licensing is an integral part of the online gambling industry, and the NGB works in partnership with provincial gambling regulators to ensure all the top-rated South African online casinos and sportsbooks are licensed to operate in the country. 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

The NGB has a stringent protocol for issuing new licenses to operators, and a thorough vetting process is undertaken before any licenses are issued. Gambling licenses can only be applied for through a provincial regulator in a province where the operator will reside. The gambling laws in the country prohibit operators from getting a license as an online casino, so most betting operators work around this by getting 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.

South Africa has witnessed a remarkable rise in online advertising of gambling operators, and today, you will find TV adverts, social media adverts and a plethora of billboards running online casino and sports betting adverts from many online casinos ZA and the best online casinos South Africa has to offer its citizens. 

This timing of the Bill

The NGB and all provincial gambling regulators have gone to great lengths to ensure that FICA compliance is a priority and that no registered player from any licensed operator in Mzansi can withdraw funds without providing their FICA documentation. 

‘’As mentioned, the Bill has taken over two years of work to bring to fruition and finds the perfect balance between protection, regulation, and administration. With the upcoming 29 May national and provincial elections, the ANC looks set to drop far below the 50% majority mark, which means that in the new Parliament, it will no longer have its majority to reject legislation on frivolous grounds only out of spite because it came from an opposition party. It is Bills like the Remote Gambling Bill which are vital to protect the most vulnerable people and with the ANC below 50%, the DA can ensure that this will be the first of many Bills introduced to rescue South Africa,’ the DA said in its announcement.

The DA statement concluded with the above snippet, and that brings into question the timing of this Remote Gambling Bill. The bill was introduced in Parliament just 3 weeks before the election when many political parties were campaigning and carrying out last-minute PR.

Irrespective of the controversial timing, some of the proposed reforms have merit, especially those surrounding regulating advertising and the protection of minors and vulnerable persons. The online gambling industry in South Africa is a profitable sector, and the NGB has done well in ensuring all operators’ fairness, safety, and transparency.

However, there have been some shortcomings, and if this new Remote Gambling Bill can integrate some aspects of the current framework while introducing some new ones, such as better regulation of advertising, we are sure that the online gambling industry will continue to thrive in South Africa and continue its upward trajectory.