South Africa government rules out online gambling bill
Parliament has "no intention" to push through online legislation as trade body issues warning of widespread clampdown
South Africa’s government says online gaming will “remain a banned activity” and has pledged to crack down on the practice, seemingly dashing any hopes of the country implementing an online regulatory framework in the near future.
In a statement issued this morning by the Department of Trade and Industry (DTI), South Africa’s ruling parliament said it had “no intention” to legalise online gambling and warned that offering the products could lead to fine of up to ZAR10m (£566k) and up to 10 years in jail.
The news comes after opposition politician Geordin Hill-Lewis last week revived his remote gambling bill and said he was “optimistic” regarding its chances of legalising the activity.
The DTI this morning also contested issues raised last week by South Africa’s Casino Association which discussed the perceived loss of tax revenues, claiming there to be “a number of social ills associated with gambling, especially online gambling”.
“Online gambling is not desirable and the DTI has raised its objection to the proposal by the Democratic Alliance to legalise online gambling,” the statement read.
“In our view no amount of control will adequately curb the harm that may be caused to South African citizens by online gambling, hence we reiterate that it remain a banned activity.”
It completes a u-turn for South Africa’s government which had previously appeared supportive of the legislation before tabling proposals to limit gambling in the country to traditional, land-based forms.
The statement follows an announcement last week that the DTI will also lead a restructure of South Africa’s National Gambling Board (NGB) which is to be disbanded in the midst of a corruption scandal.
The NGB was suspended in October last year pending the results of “forensic investigation” carried out by the DTI, however South Africa’s trade and industry minister Rob Davies later confirmed the issue to stem from its failure to prevent “irregular, fruitless and wasteful expenditure”.
The new body will be made accountable to the DTI rather than its own board of directors, a measure DTI deputy director general Zodwa Ntuli said was designed to help the board be “effective and not stifled”.