In September the South African government passed a new National Gambling Act to modernize gambling regulation in the country. The act does not permit online gambling or the provision of such services from South Africa, but it does set forth a schedule of transitional provisions that requires the gaming board and minister to consider legislation to regulate interactive gambling and to report their findings on a timely basis.
Taking the bill at a word-for-word perspective, it seems that the South African government is taking a step toward licensing online gambling by laying out a schedule for scrutinizing a possible online gambling regulatory regime. But in truth, the entire schedule addressing online gaming is contained in just a few short paragraphs of the Act, and the information provided is minimal.
So IGN contacted Wayne Lurie, a gaming lawyer in South Africa, to learn more about the future of online gambling in South Africa.
We asked Lurie:
What implications does South Africa's National Gambling Act 2004 have for online gambling? And what, if any, actions are being taken by the government to study the possibility of adopting regulations for online gambling?
Wayne Lurie: The first steps towards recognizing interactive gambling in South Africa have been taken with the introduction of the National Gambling Act 7 of 2004 ("the Act") in August this year. However, somewhat ironically, the very first step is to effectively prohibit all existing South African Internet casinos from continuing to operate for at least two years.
The Act will only become effective sometime between November this year and early February next year, as in South Africa there can be a lag between legislation being "passed" and being put into effect. Upon the effective date, those Internet casinos taking bets from South Africans will be committing an offense if they continue to ply their trade, as will any punters making use of South African Internet casinos. This is due to the fact that section 11 of the Act states simply, "A person must not engage in or make available an interactive game except as authorized in terms of this Act or any other national law." Fortunately for avid online chess fans, the term "interactive game" is in turn defined as a "gambling game. . . accessed over the Internet."
It is unfortunately evident from the definition of interactive gaming that the drafters, thereof, seem to have been less than sensitive to the essential modern concept of "technology neutrality." By limiting the definition of interactive gaming to purely Internet-accessed gaming, it is conceivable that certain wireless, cellular and private networking technologies might escape the "net" of the Act. The "transitional provisions" of the Act provide for the convening of a committee to deliberate for a year from the effective date on the various policy issues attendant to interactive gaming. Upon the expiry of the year period, the committee is expected to thereafter report to the minister of trade and industry, who must in turn create legislation to license and regulate interactive gambling within a further year.
What is clear is that the Act provides a relatively short period within which to achieve a complex task. It is suggested that the committee will do well to analyze similar legislation from around the world as well as to thoroughly explore and understand the various technologies through which interactive gambling may be delivered.
In the meantime, it would seem that the game is unfortunately up for any South African online casinos.
Wayne Lurie is a South African attorney and director of Lurie Incorporated in Johannesburg, a boutique law firm specializing in advising clients on all aspects of information technology law. In providing its services to all manner of IT companies, Lurie Inc. has also developed a niche expertise in online gaming law. Wayne has over seven years experience in the Internet law field and is a general member of the International Masters of Gaming Law, a member of the South African Internet Lawyers Forum, an Associate Member of the American Bar Association and a member of the Independent Bar Association. He also frequently lectures and writes articles on IT and Internet law.