This week the Casino Association of South Africa (CASA) said that the casino sector supports interactive gambling regulation in principle but suggests that further consultation and research are needed. The National Gambling Amendment Bill has been tabled to cover online gambling but CASA wants more investigation into the commercial viability and socio-economic implications of a legalised interactive gambling industry. Addressing the Portfolio Committee on Trade and Industry on Wednesday, CASA chairman Jabu Mabuza said:

“In our view the amendments as tabled do not do the job adequately. There are a number of issues and shortcomings which need further thought and debate, notable among which is the absence of any clear thinking with regard to taxation, which will determine the positive and negative effects, and ultimate success or failure, of the interactive industry. High levels of tax on interactive gambling compared to other jurisdictions will discourage the entry of new operators into the market, while low taxation will prejudice other gambling sectors in South Africa.”

Yesterday Trade and Industry Acting Deputy Director-General Fungai Sibanda told the Portfolio Committee that discussions were taking place between the Trade and Industry Department and the Treasury on the taxation of online gambling. He rejected the suggestion that South African casino operators should automatically be granted online licences, pointing out that licence applicants must prove they have the expertise to conduct Internet gambling as well as passing probity checks.

Companies such as Betfair are pressing for person-to person gambling, which is still under consideration by the committee. Under the present form of the amendment bill, only bookmakers will be allowed to offer person-to-person betting. Betfair is objecting to another provision under the bill – that online operators must locate all their equipment in South Africa.

The National Gambling Amendment Bill has been introduced “To amend the National Gambling Act, 2004, so as to change certain definitions and insert new definitions; to provide for the regulation of interactive gambling;

to provide for the registration of players and opening of player accounts; to provide for the conditions applicable to interactive gambling licences; to provide for further protection of minors and other vulnerable persons from the negative effects of gambling; and to provide for the remittance of winnings to foreign nationals; and to provide for matters relating thereto.” (E-08.24.07)

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