South Africa Online Gambling Law

Gambling in South Africa. While gambling reformers want the market opened up so additional revenue can be generated, traditionalists want to ensure that the existing heavy restrictions are continued. In most ways, online casinos are banned in South Africa.

Overview

• Online sports betting, online horse race betting and the business of bookmaking is lawful in South Africa, provided that the person conducting such business has a provincial bookmaker’s licence. Dingley Marshall can assist with gaming, gambling and betting law in South Africa.
• According to our information, online gambling in South Africa will most likely be officially illegalised, so we strongly advise you to steer clear from any offshore gambling and casino sites. Usually when players from certain countries are restricted from accessing a casino site, there are procedures to ensure that they get their deposits back – however, this isn’t always the case, so you should still be careful.
• Legal Online Gambling in South Africa. In terms of interactive gaming (online gambling), section 11 of the gambling act 2004 issued by the NGB still remains firm, it states that: “A person must not engage in or make available an interactive game except as authorised in terms of this Act or any other national law”.

Gambling has a long history in South Africa and there have been a number of significant changes to the laws since gambling was introduced in the country. From as early as 1673, most forms of gambling in the country were banned, although there have been periods when gambling was legalized. Currently, land-based gambling is legal and regulated, while online gambling is illegal.

The History of Gambling Law in South Africa

Gambling has had a long history of restrictions in South Africa. The 1965 Gambling Act, officially made all forms of betting illegal, except for horse racing which was considered a sports activity. Many illegal casinos opened in the 1970s and in 1995, as many as 2,000 illegal casinos were believed to have been operating. The law changed in 1994, when all forms of gambling were made legal by the newly democratic government. The National Gambling Act of 1996 licensed and regulated casinos and introduced a national lottery.

The National Gambling Act 2004

The National Gambling Act of 2004 repealed the 1996 Act and prohibited online gambling activity. It made it illegal to both offer and engage in online gambling activities. Online sports betting was an exception; however other forms of online betting included local operators as well as operators licensed off-shore.

The National Gambling Amendment Act 2008

The aim of the National Gambling Amendment Act of 2008 was to legalize online gambling and introduce the regulation of the online gambling market. The Act; however, has not come into power due to strong opposition.

2010 North Gauteng High Court Ruling

In 2010, the Gauteng High Court ruled on the jurisdiction of online gambling transactions in South Africa. As a result, online gambling through off-shore servers was also banned in South Africa. This means that both offering online gambling services, as well as the act of gambling online, became illegal. A fine of R10 million or ten years imprisonment is the consequence for online gambling sites, Internet providers, banks that process payments for online gambling and individuals who gamble.

Appeal

There is currently an appeal to the high court ruling that is waiting to be heard. Those in favor of online gambling in South Africa are still hopeful that the 2008 National Amendment Act will come into force and that the online gambling industry in South Africa will be legalized and regulated. In the meantime; however, online gambling remains illegal for all parties, including the players, the operators and even the banks that process payments for that purpose. In addition, mass media channels that advertise online gambling will be held liable.

South Africa gambling laws have remained relatively consistent since 1996 and the beginning of the post-apartheid era.

The National Gambling Act of 1996 paved the way for land-based casinos, bingo, a national lottery, LPMs, and sports betting. A 2004 revision of the 1996 legislation then addressed online gambling laws in South Africa by distinguishing between website-based gambling and betting.

Since then, everything has stayed status quo with gambling laws in South Africa. There’s been an online casino provision lingering in a 2008 National Gambling Amendment, but the government has yet to pull the trigger.

So, for now, the South Africa legal gambling landscape remains virtually unchanged from what it was 20 years ago.

When you read through any account of the history of South Africa’s gambling laws, you’ll find a mention of tight reins starting in the 1600s.

For centuries legal betting pursuits in South Africa were either completely off the table or, for most of the 1800s and 1900s, limited to horse racing.

Here are some key moments in the history of gambling laws in South Africa

To quickly and fully understand the gambling and online gambling laws in South Africa, you need to be aware of an important distinction.

• Online betting = sports and horse racing
• Online gambling = everything else (casino games, bingo, poker)

Since 2004, South Africa’s gambling laws were clarified, allowing online betting but declaring online gambling illegal.

Punters can make bets on any of the top sporting events and national and international horse races, as there are plenty of SA-licensed online bookmakers.

But if you want to play some blackjack or slots from your computer or smartphone, you’re out of luck, at least as far as the South African government is concerned.

Does that mean no South Africans use online casinos? No, because offshore gambling providers accommodate South Africans with plenty of deposit alternatives that leave out traditional banks and financial institutions.

Residents use e-wallets like Neteller and Skrill or other methods like PaySafeCard to easily transfer money to online gambling sites.

Land-based casinos were initially opposed to legal online gambling in South Africa. However, the climate is changing.

With the pandemic of 2020 forcing casino closures, online platforms would keep the cash flowing. The tax benefit would remain in the country instead of supporting offshore online casinos and poker rooms.

The National Gambling Act of 1996 changed the entire South African legal gambling landscape. A national governing body, the National Gambling Board, pulled everything together with a standard set of rules.

It’s also behind the problem gambling program with educational and counseling resources.

• National Gambling Board of South Africa
• Phone: 010 003 3475
• Website: https://www.ngb.org.za/

Nine Provincial Gambling Boards were also formed to keep tighter control on each region.

Each is responsible for licensing and regulating casinos, sports betting, LPMs (Limited Payout Machines), and Bingo.

We detail each gambling board below.

The last board in this table, the Western Cape Gambling and Racing Board, is the largest bookmaking license provider in South Africa.

The South Africa National Gambling Act of 1996 provided for 40 casino licenses throughout the nine provinces, 39 of which are active.

Sun International is behind many South African casinos, including Sun City, which opened in 1979 when Bophuthatsuana was considered an individual state and exempt from the 1965 Gambling Act.

GrandWest is also a Sun International property and is the grandest in the area, with more than 2,500 slots and 80 tables.

Casino laws in South Africa mean you need to be 18 to gamble in these venues, but many casinos are family-friendly. The under 18s can’t linger on the gaming floor, but they have restaurants, arcades, and other activities that’ll keep them busy.

South Africa Online Gambling Laws

Here’s a full list of legal casinos in South Africa.

South Africa’s casinos cover the gamut. Small casinos, even resort properties, may only have a few hundred slot games.

Mid-range venues, along the lines of Hemingways and Wild Coast, come in with 500 titles in their slot banks. Then, you’ve got the massive resort-style casinos, like Montecasino and GrandWest, with thousands of machines lining the betting floor.

The larger “super casinos” are Vegas-style with nearly 100 tables, poker, restaurants, entertainment venues, golf, and more.

Horse Racing in South Africa

The first official race club meeting was in 1802, and popularity never waned, especially with horse racing as the only fully approved form of legal gambling in South Africa.

Eighty years after the first meet, the Jockey Club of South Africa was established in 1882.

Even in 1965, the Gambling Act provided for punters, as long as they placed their bets at the track.

South Africa has 27 annual group one events, including these three premier annual races.

• The J & B Met – Kenilworth (January)
• Vodacom Durban July – Greyville (July)
• Sansui Summer Cup – Turffontein (November)

The following is a list of all the racecourses in South Africa, each of which offers legal horse racing betting.

Like sports betting, horse racing is considered “betting” and not “gambling,” so bets can be placed online as well as in person.

Tab Online is an official totalizator that covers all nine provinces. It advertises payouts of more than R70 million weekly.

You can register an account and select PayU to link your bank account to Tab Online, so you don’t have to set up a new payment method whenever you need to use the service.

We touched upon the situation with sports betting and the differences between SA’s online gambling laws and online betting laws.

It’s a critical distinction, as online betting is legal and online gambling in South Africa is not approved, and there are no licensed online casino game providers.

Horse racing came first, as sports betting wasn’t addressed until the National Gambling Act of 1996. Sports betting kicked into gear immediately.

Many of the licensed betting operators are part of the Association of South African Bookmakers.

• The Association of South African Bookmakers
• Phone: 031 764 6471
• Website: https://www.bookies.co.za/

As online gambling laws in South Africa allow for online betting, some members include websites owned by Supabets, Sportsbet United, Bayview Tattersalls, and Sunbet.

Even though punters have access to SA-licensed online sportsbooks, many still turn to offshore providers for a wider variety of betting markets and unique bonuses and free bets.

South Africa’s Limited Payout Machines

Another opportunity for legal gambling in South Africa is through 50,000 Limited Payout Machines (aka LPMs) allocated to the nine provinces.

While they provide slot-like machine gaming, SA’s gambling laws are strict regarding these LPMs. Limited Payout Machines were approved as part of the 1996 National Gambling Act, and restrictions have remained since then.

Each licensed established (bar, restaurant, etc.) can only have five machines. Players can’t stake more than R5, nor win more than R500.

The following is a list of Limited Payout Machines per province.

• Eastern Cape: 6,000
• Free State: 4,000
• Gauteng: 10,000
• KwaZulu-Natal: 9,000
• Limpopo: 3,000
• Mpumalanga: 4,000
• North West: 3,000
• Northern Cape: 2,000
• Western Cape: 9,000

South Africa’s National Lottery has just passed its 20^th anniversary. Within two decades, an estimated 96% of SA residents 18 and over have purchased tickets at one time or another.

The lottery is big business with five million weekly transactions and annual revenue well over the R2 billion mark. Eight games are available at local retailers, including some banks.

Players can also buy virtual tickets through the National Lottery website or banks, including ABSA, FNB, Standard Bank, and Nedbank.

Aside from operating costs and winning payouts, 34% of the South Africa National Lottery revenue is distributed to charities.

The 2004 National Gambling Act picked up where the 1996 legislation left off with bingo. Real money bingo is approved and offered in 34 locations in six out of nine provinces.

Galaxy Bingo is the premier provider and approaches bingo halls like casinos. Players can purchase paper or electronic cards and also take advantage of dining and other perks, depending on the Galaxy venue.

The other three provinces without Galaxy Bingo are Free State, Northern Cape, and Western Cape.

National Responsible Gambling in South Africa

Provincial gambling boards take on the responsibilities of South Africa legal gambling legislation and regulation. The National Gambling Board (NGB) looks at the big picture, including problem gambling.

Resources like self-exclusion, limits, etc., are available to all players. The NGB also established a National Responsible Gambling Program focusing on public education and awareness.

The program also provides counseling services, including a 24/7 Problem Gambling Counseling Line.

We started by mentioning that South Africa’s gambling laws have essentially stayed the same for the past few decades.

Residents can take advantage of 39 land-based casinos, thousands of venues with Limited Payout Machines, Bingo, lottery tickets, pari-mutuel wagering, and sports betting. But if you’re a punter looking for changes to South Africa online gambling laws, you’ve been waiting for quite some time.

The subject of nationally recognized online casinos has been up for discussion since 2008. But recent support from land-based casinos may soon be enough to nudge the fulfillment of the National Gambling Amendment Act.

South Africa Gambling Laws FAQ

You need to be at least 18 years old to participate in legal gambling activities in South Africa.

This includes casino games, sports betting, the lottery, and bingo.

In South Africa, profits from gambling, including casino games, sports betting, Bingo, and lottery, aren’t taxed.

Horse racing is the one exception, though. Punters are charged a 6% VAT on payouts.

South Africa Online Gambling Lawyers

While the terms online gambling and online betting are frequently interchangeable, in South Africa, there’s a primary distinction.

Online betting sites handle sports bets and pari-mutuel action. Operators can obtain national licensing through the provincial gambling boards.

On the other hand, online gambling sites refer to casino gaming and poker play. While South Africans use online gambling sites from offshore providers, there are no legal and regulated options within the country.

Yes.

Online gambling laws in South Africa restricts casino gaming. However, there are licensed websites for sports betting, horse racing, and lottery tickets.