Following a report from the National Gambling Board of South Africa, stating the need to license and regulate online gambling, a draft amendment bill has been passed to the Cabinet for approval. South Africa, unlike the United States, has declined to make online gambling a criminal activity that, forced underground, would be unregulated and prey to organized crime. It is hoped that the draft amendment bill, which should be made available to the public by the end of the month, will pass before the end of March 2007.

Technically online gambling by South Africans is illegal at present although online sports betting was made legal two years ago. However, South Africans cannot legally play on the sites of overseas operators. Three South African facing websites are Piggs Peak, Silver Sands and African Palace. Of the three it is only Piggs Peak that places its company details prominently on its website together with eCOGRA certification and Swaziland licence. All three companies advertise heavily within the South African media and online.

The new legislation is expected to include control systems to identify problem gambling, money laundering and other criminal activity. The government has sensibly decided that outlawing online gambling is unlikely to stop the activity and therefore it is better to license and provide safe and regulated play for online gamblers. The fact that it will acquire a new source of tax revenue once online gambling at South African licensed sites begins is, of course, a bonus. (E-10.16.06)

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