The National Gambling Board (NGB) has welcomed a Supreme Court of Appeal ruling, which places limits on bookmakers.
The SCA ruled that, in terms of the Gauteng Gambling Act 4 of 1995, it is unlawful for bookmakers to offer fixed-odds bets on the outcome of a casino game, including roulette.
The NGB said that the ruling affirms South Africa’s gambling policy approach to the regulation of casinos, betting, limited payout machines, and bingo as separate modes of gambling.
Licensees are required to operate strictly within the parameters of their licensed gambling mode.
South Africa does not permit online interactive gambling; however, the betting sector is allowed to offer fixed-odds betting through online platforms.
Betting companies managed to circumvent the former by turning interactive gambling games like roulette into a livestreamed “sport” and offering fixed-odd betting.
While this grey area was permitted by some provincial gambling boards, the Casino Association of South Africa took exception to this and challenged the matter in court.
The NGB said that online bets by betting licensees were never intended to be extended to interactive gambling, as this remains unlawful as per the National Gambling Act.
“By offering online casino-type games, certain betting operators are effectively operating as casinos, in contravention of the law,” said the NGB.
“This is not only unlawful, but it is an unfair practice as licensed casinos are prohibited from offering similar casino-style games online.”
The unfairness is exacerbated by casinos being subject to a higher tax bracket than bookmakers, despite the latter benefiting from having a broad market reach through the ease of access to online games.
The SCA also rebuffed the bookmakers’ arguments that they are offering games as contingencies by betting on the outcomes of casinos.
“This reaffirms the NGB’s interpretation that contingencies permitted in the betting sector refer to contingencies on events or occurrences that are still to take place and that casino games cannot be classified as events or occurrences.”
Nationwide impact
While the judgment was based on the interpretation of the Gauteng Gambling Act, its implications extend to all bookmakers across the country.
The NGB has called on all bookmakers who engage in the practice of offering casino-style games as their source of contingency to refrain from such practices and comply with the law.
“The NGB calls on the Provincial Licensing Authorities to monitor that their respective licensees comply with the applicable law and their licence conditions, said Mr Lungile Dukwana, Acting CEO of the NGB.
“Authorities also need to ensure that swift and decisive action is taken in accordance with the applicable laws of the country in cases of non-compliance.”
The NGB has the legal authority to confiscate winnings associated with illegal gambling activities, and this includes offering gambling on an unlawful activity or contingency.
Interactive gambling is one such unlawful activity. Winnings emanating from interactive gambling will also be isolated and confiscated.
Furthermore, the NGA imposes criminal sanctions for anyone who contravenes the National Gambling Act.
This can lead to imprisonment not exceeding 10 years or a fine not exceeding R10 million or both.
