After months of debate and consultation, the South African Parliament yesterday approved legislation to regulate Internet gambling in the country.
The National Gambling Amendment Bill, which legalizes and regulates online gaming in South Africa, requires operators to apply for a national license and base their operations in South Africa. It also requires operators to ensure that customers are at least 18 years-old, have a valid bank account and that they have set a limit on the amount of funds that can be transferred from their bank account.
The bill was introduced by the Department of Trade and Industry (DTI) in December 2006, but stalled in August amid opposition from the Casino Association of South Africa (CASA), which argued that the bill did not adequately ensure fairness among the land-based casino industry.
CASA advised that the interactive gambling industry should be subject to a tax rate at least equal to that of other gambling sectors. Furthermore, online gambling operators should be required to follow the same stringent rules as the land-based sector regarding empowerment, probity, financial credibility, skills development, job creation, regulation, taxation, and measures to prevent underage gambling and the promotion of responsible gambling.
Rebutting CASA's claims, General Fungai Sibanda, acting deputy director for trade and industry, last week said that according to studies, Internet gambling poses no clear threat to the land-based casino industry, as it would only represent about 2 percent of the country's gambling population. He also said that imposing a strict taxation regime would prevent the overgrowth of online casinos feared by the land-based industry.
The bill now moves to the National Council of Provinces (NCP) for approval, which could result in another round of debates. Upon the NCP's approval, the bill must be signed into law by President Thabo Mbeki.
Click here to view a copy of the bill.