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Lack of clarity on SA\'s online gambling laws

Publish date: 06 December 2006
Issue Number: 1161
Diary: Legalbrief eLaw
Category: Corruption

Operators offering online gambling and those who indulge in it face fines of up to R10m and/or 10 years in prison following a landmark ruling in the Pretoria High Court.

At present the court ruling was applicable only to \'casino-style gambling\', said Gauteng Gambling Board legal manager Edward Lalumbe. A report in The Citizen notes that SA does not issue licences for online casinos, and it was this that finally brought the provincial gambling authority along with the National Gambling Board and the Minister of Trade and Industry to court. It was maintained that Swaziland-registered Piggs Peak Casino could not offer online gambling to punters in SA. This is because SA does not have the necessary legislation to issue online gambling licences. ITWeb reports that Pretoria High Court judge Willie Hartzenberg granted the Gauteng Gambling Board a declaratory order, banning online gambling – other than bookmaking – in the province. But ICT lawyer Lance Michalson said the position elsewhere is less clear. \'The judgment does not go so far as to say online gambling in the whole of SA is illegal. It only says online gambling in Gauteng is illegal unless the casino obtains a licence from the Gauteng Gambling Board,\' Michalson said. Full report in The Citizen Full ITWeb report

Moving to online gambling issues elsewhere, Sportingbet became the latest firm to post huge losses following the passing of anti-online gaming legislation in the US. The New Media Age reports that it posted a loss of £241m for the first quarter of 2006 but there were encouraging signs for the future of the company. The loss was in line with traders\' expectations and Sportingbet recorded a 54% increase in sports bets in Europe, the company\'s main area of focus since withdrawing from the US. Costs of closing down its US operation following the passing of the Unlawful Internet Gambling Enforcement Act in October were blamed for the loss. Full New Media Age report

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