Following a study of international online gambling that was commissioned by the National Gambling Board of South Africa, the bill that proposed the licensing and regulation of Internet gambling was passed by Parliament at the beginning of May. The bill, the National Gambling Amendment Bill, has now been signed into law by President Thabo Mbeki but there is as yet no indication when the legislation will be implemented.

The South African Department of Trade and Industry (DTI) sponsored the amendment bill in the belief that the resultant probity and technical checks of a regulated industry would ensure a safer environment for South African online gamblers. Operators will have to locate servers and records within the country and software systems providers must obtain a licence for key staff, their software and related equipment.

Just under one year ago the Casino Association of South Africa (CASA) said it supported interactive gambling regulation in principle but said more research into the commercial viability and socio-economic implications of such a legalised industry was needed. At that time CASA chairman Jabu Mabuza stated: “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.”

Under the amendment bill the section on interactive gambling tax states: ‘Tax in respect of interactive gambling activities will be imposed in terms of appropriate legislation.’ The absence of tax measures in the bill had caused concern but last August Parliament was told by the DTI that tax policy would be used to constrain the growth of Internet gambling and discussions were underway with the Treasury on taxation issues. Tax measures could not be included in the bill as the Treasury will have to introduce a separate money bill.

The new National Gambling Amendment Act, 2008 amends the National Gambling Act, 2004 to ‘provide for the regulation of interactive gambling so as to protect society against the stimulation of the demand for gambling….. to provide for the conditions applicable to interactive gambling licences…..to prevent gambling from being associated with crime, money laundering or financing of terrorist and related activities; and to provide for matters related thereto.’ The Act will come into operation on a date fixed by the President by proclamation in the Government Gazette. (E-07.30.08)

© Copyright 2008 CasinoCompendium



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