Online gambling illegal

Wednesday, February 16, 2011

Pretoria - Online gambling in South Africa remains illegal, despite the number of operations increasing, the National Gambling Board (NGB) said on Wednesday.

The board has identified an increase in the number of illegal online gambling operations nationally. In the past few weeks, it received alarming rates of inquiries on whether this type of gambling is legal.

"The NGB wishes to put it on record that online gambling remains illegal and outlawed in South Africa. The National Gambling Act No 7 of 2004 (the "Act") succinctly states that no person is allowed to engage in or offer interactive (online) gambling activities in SA unless authorised by the Act or related national legislation," NGB CEO Baby Tyawa said.

Advocate Tlotliso Polaki, Legal Manager at NGB, said there were about 30 illegal online gambling casinos that were targeting the South African market.

"They offer games in South African rand equivalent," she explained, adding that these casinos are licensed in terms of foreign law but specifically target South Africa. "There are 700 others not offering games in rand value but in other currencies," said Polaki.

The NGB appealed to the public to refrain from online gambling, adding that there are no lawfully licensed online gambling operators in the country.

"Neither has the NGB and provincial gambling regulators licensed any suppliers or developers of online gambling software in and outside the country," said Tyawa.

A pending court litigation between SA regulators and Piggs Peak Casino does not change the law, said the Board. Piggs Peak stopped operating in SA last August.

The casino lost its application regarding the legality of South Africans playing on its Swaziland licensed internet casino.

"RSA residents remain precluded from partaking in lotteries organised abroad or participating in any online gambling activities as such participation contravenes the Lotteries Act No 57 of 1997 and the National Gambling Act No 7 of 2004 respectively."

South Africans who contravene the Act will forfeit their winnings and will have to face criminal prosecution.

Unlicensed operators were also encouraged to use readily available technology to block their domains from being accessed in South Africa. "Anyone found guilty and liable under the Act shall be fined R10 million or 10 years imprisonment or both."

The board further assured the public that everything will be done to eradicate online gambling as well as related offences.

"We are working together with law enforcement agencies nationally and internationally in order to find a solution that will protect our people against unscrupulous operators," said the CEO.