South Africa takes aim at unlicensed operators with latest regulatory bill
New bill takes winnings away from punters betting on unlicensed sites
The South African government has introduced new restrictions on unlicensed online operators targeting South African citizens.
Under a new bill, authored by Minister of Trade and Industry Dr Rob Davies, the National Gambling Board (NGB) is to be “repositioned” as a National Gambling Regulator with new regulatory and inspection powers.
The bill includes new rules that would declare all winnings gained betting via unlicensed online sites forfeit, and instead gives the NGB powers to reclaim this money for use in its regulatory activities.
The bill includes explicit warnings to financial institutions that they “must not process payment transactions for any gambling activities that are not licensed” under current rules.
It also prohibits individuals from providing “internet services or other technological support for any gambling activities that are not licensed in terms of this Act.”
Following the lead of regulators throughout the world, the NGB is empowered to keep a register of unlawful gambling operators, with any company on this list being barred from obtaining a licence to operate in South Africa for a period of five years.
Under the terms of the act, the regulation of national lottery and lottery betting, together with the regulation of sports betting pools is to be transferred to the National Lotteries Commission, which is empowered to grant licences to operators for all activities in this area.
In a move that will affect South Africa’s online bookmakers, the bill provides for the creation of a “self-regulating body” for the South African horseracing industry, whose activities will be overseen by the NGB. The bill would also institute the general prohibition of dog racing and any bets on dog racing.
The NGB, together with any participant in the South African gambling sector are also charged with delivering “broad-based black economic empowerment targets in the gambling industry”, although no explicit targets are mentioned in the bill text.
The Ministry of Trade and Industry has confirmed that it plans to pass the bill for debate in the South African parliament during the second part of the 2018 legislative session, the last before the next South African general election, which takes place in 2019.