Details from the South Africa Report

3 September 1999
The South African National Gambling Board released a report last week saying that regulating Internet gambling could foster a $1billion a year international export market for the country of South Africa. The report was commissioned in April 1999. If it receives a favorable response from South Africa's principal players, the Board will use it as part of its recommendations to the government.

Here are some of the report's findings and recommendations:

  • South African players, who are expected to constitute up to 2 percent of the market, should be permitted to play, but will be taxed.

  • The initial corporate tax rate should be 30 percent, which is hefty, but much more attractive than rates in Australia, which hover around the 50 percent mark. However, a low levy (of the order, for example, of 2 percent of player losses) could be imposed on operators specifically for social purposes, and not as a tax.

  • Federal regulations will be viewed as more authoritative than the provincial regulations of Australia.

  • Instead of having a competitive licensing process, there should be no specific limit to the number of licenses awarded. Instead the number of licensees should be determined by the high standards and quality demanded by the Board.

  • As in the case of the Queensland model, there should be an emphasis placed on player protection.

  • There should be strict provisions, including a screening period, to assure that there is no underage gambling.

  • Players should be required to specify a maximum amount of money they can lose in a 24 hour period and operators should be required to abide by this.

  • To prevent money laundering, the board should have access to all transactions conducted on operators' systems.

  • To assure that probity investigations of applying companies and all their employees are thorough, weight may be given to a finding of suitability by a foreign regulatory body such as the Gambling Board of Great Britain, Queensland or other impeccable gaming authorities.

  • The application fee should be US$ 50,000; the first-year license fee should be $350,000; and the renewable annual license fee should be $100,000. Probity costs, as per precedent, should be charged as extra to applicants.

View the Report

View Appendix 2

View Appendix 3