South Africa Approves Online Gambling Law

May 21 - The South African gambling industry will finally have a regulated, legal online gambling market, after the country's parliament approved a new law that will address the problems currently facing the industry and allow the participation of regulated and licensed companies in the market. The bill is yet to be signed by President Thabo Mbeki.

Parliamentary papers stated yesterday that the main reason for passing the National Gambling Amendment Bill was to attack the criminal elements currently found in the online gambling industry.

A memorandum attached to the new bill stated that, because the industry was generally "plagued by crime", "This situation has resulted in a considerable loss of revenue to the national fiscus and compromises the country's reputation as a responsible global citizen".

The memorandum went on to say: "The purpose of this Act is to ensure that all gambling activities are conducted responsibly, fairly and honestly (and to) protect minors and other vulnerable persons from the negative effects of gambling."

According to the terms of the Act, all online gamblers will need to be registered with a licensed interactive gaming provider, as well as submit proof in the form of an affidavit that they have reached the age of 18.

The Act  introduces regulations that the government hopes will combat problem gambling, and deals with issues such as taxation, advertising, licensing and other important details.

The South African Gambling Board estimates that spending on gambling in the country, excluding online wagering, doubled from 2002 to R13.5 billion last year. The Board will be responsible for enforcing the new online gambling legislation.

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