Calls to Regulate South African Online Gambling

January 23 - A Johannesburg University professor and expert on internet communications has told a special parliamentary session discussing the amendments to South Africa's National Gambling Act, that the government should regulate online gambling and not prohibit it.

Professor Basie von Solms told the Trade and Industry Portfolio Committed that attempts should not be made to stop South Africans gambling online. However, he called for the South African internet gambling industry to be legalised under strict conditions in order to ensure that the player's confidentiality and security of information is guaranteed.

Solms also pointed to the many other benefits which would come the regulation of South African online gambling, including licensing fees and taxes which could be collected from South African online gambling operators.

Another side benefit would be that players would be able to enjoy peace of mind as they would know that they are playing at licensed and regulated sites, while fraud and other cyber crimes would be kept to the minimum.

A licensed and regulated online gambling industry in South Africa has the potential to bring in up to R6 billion, according to the Public Affairs Manager of Betfair, Tom Tuxworth.

The executive said that new South African gambling laws should regulate all gambling products, however taxation should be on gross profit and not turnover.

Tuxworth also called for the government to introduce strategies that would fight money laundering and fraud and ensure high standards of player protection.

"Online specific regulation is required to protect customers and to enable effective taxation," he said. "Onerous regulation, limited product offerings and high taxes force customers to the offshore and unregulated markets, while realistic regulation limits losses to offshore operators an protects players."

Calls to Establish Cyber Police in South Africa

Prof von Solms told the committee that it was important to establish a cyber police force in South Africa that would comprise of compliance inspectors and other specialists, in a bid to protect internet users.

"We are allowing citizens to use the internet more and more but are not protecting them," he said.

Jacques Smalle, Democratic Alliance MP agreed. "As the electronic media is growing with a rapid rate, we believe that it will be necessary to regulate the electronic communications by means of some sort of cyber policing force, which must be well trained," he said.

In 2010, the South African government drafted a cyber security strategy which was circulated. However, nothing further ever became of the strategy.

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