The National Gambling Amendment Bill, sponsored by the Department of Trade and Industry, has been passed in South Africa. It will now go to the National Council of Provinces for debate and, if approved by the lower house, will be referred for signature to President Thabo Mbeki. The bill aims to regulate online gaming in order to protect players and bring tax revenue from Internet gambling.

Operators will have to obtain a national licence and locate servers and records within South Africa. They must verify the identity of customers and ensure that they are over 18 years old. They must also facilitate a customer nominated bank account to handle transactions. The bill was passed yesterday after many months of research and special hearings. In August some ANC MPs tried to block the bill.

The issue of taxation levels has yet to be finalised but land-based casino operators want online operators to face similar taxation to that imposed on casinos in South Africa. Those providing software systems for the operation of online gambling will have to obtain a national licence for key staff, the interactive software, related equipment and its suppliers and maintenance providers.

It is hoped that these measures will keep online gamblers playing at South African websites where probity and technical checks should guarantee their protection and limit problem gambling. The Department of Trade and Industry has chosen to seek the legalisation of online gambling rather than take the US route of trying to outlaw the activity. (E-09.12.07)

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