Corporate & Commercial Law News South Africa

Gambling board toothless against rogue operators

National Gambling Board CEO Baby Tyawa admits that she is not aware of a lot of illegal online gambling occurring online, ITWeb reports. The National Gambling Board (NGB) is powerless to stop international online casinos illegally offering their services to South African punters, because the internet is virtual and the board does not have any international jurisdiction.

Instead, the only action the board can take is to write letters to international regulators, and try and catch local punters out through its relationship with the South African Reserve Bank and the local banking association.

Early last month, ITWeb uncovered that, despite online gambling being made illegal last September by a Supreme Court of Appeal ruling, South Africans can easily access international casinos and place bets in rands. Tyawa says that, unless a casino's server is located in SA, the body cannot shut it down. The NGB has been writing letters to international regulators, informing them that it is compiling a blacklist, which may limit their chances of being awarded a licence if online gambling is legalised, says Tyawa. The Gambling Review Commission has recommended that online wagering be made legal, and more than 10 licences issued. However, the current framework is unlikely to be changed for at least another two years, due to the lengthy processes required.

The board attempts to track punters through its relationship with the South African Reserve Bank and the Banking Council of SA, which allows it to trace credit card transactions. However, sometimes the bids are hidden as "leisure" and cannot be traced, Tyawa says. Punters who gamble illegally face penalties of up to R10 million, or jail time. In addition, they will forfeit any winnings if caught. These winnings go into a trust account and end up back at National Treasury, however, no one has been arrested for illegal online gambling since the Supreme Court of Appeal decision was handed down, says Tyawa.

Read the full article on www.itweb.co.za.

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