History
The Gambling Act of 1965 is one of the most significant moments in South Africa’s gambling history, seeing as the law in question rendered almost all forms of gambling illegal within the country, with the exception of horse racing. This, however, did not stop South Africans from partaking in the hobby. The period between the mid-60s and the mid-90s saw the establishment of hundreds of small-scale illegal gambling venues, and gaming enthusiasts were more than eager to take advantage of any opportunity to gamble they could find. Thus formed a substantial gambling sector that would remain untapped by the country at large for quite some time.
Seeking to remedy the situation, the South African government passed the Gambling Act in 1996. With this, games of chance, sports betting, and lotteries were declared to be legal, and the National Gambling Board was established to oversee the operation of land-based gambling establishments within the country.
The online iGaming sphere was still in its infancy at the time, which would explain the fact that the Gambling Act did not address remote gambling. This was remedied by the National Gambling Act of 2004, which officially prohibited almost all forms of interactive gambling. This excluded sports betting, and sportsbooks are still permitted to operate in South Africa so long as they have obtained a licence to do so.
Overview of the Current Gambling Regulations in South Africa
As established, sports betting is the only type of online gambling permitted within South Africa currently. Other forms of gambling are restricted to brick-and-mortar venues, and all 9 of South Africa’s provinces have the authority to issue gambling licences. The introduction of official licensing has lowered the number of total gambling venues in South Africa, but the legitimate establishments that do operate now offer a far greater gaming experience than what South Africans had access to prior to the 1996 legislation.
All in all, the land-based gambling sector is thriving in South Africa, but remote gaming remains at a stalemate when it comes to games of chance. Numerous attempts have been made to officially legalise interactive gambling, including the National Gambling Amendment Act of 2008 and 2014’s Remote Bill, but none have come to pass thus far.
South Africans are prohibited from engaging in remote gaming activities, and online casinos are not allowed to operate within the country or, in the case of offshore casinos, offer their services to South Africans. As a result, gaming enthusiasts have no access to online gaming venues that are licensed by an official South African regulatory body.
The good news is that although South African residents could, technically, face legal consequences for gaming online, the law is not enforced. Offshore gaming websites also welcome South Africans without facing prosecution.
The only issue South African lovers of games of chance have faced in recent years is financial institutions blocking transactions from online casinos, but even this can be circumvented via the usage of VPNs, digital wallets, cryptocurrencies, and the like.
What is more, 2022 saw yet another proposal of a bill that would legalise online gaming. If passed, the new legislation will allow for the issuing of official remote gambling licences to both domestic and offshore remote casinos, and it will ensure that all gambling operations are in line with the country’s Financial Intelligence Centre Act.