Recent ruling means that operators and players found guilty of breaking the law could face a $1.3 million fine alongside up to ten years in prison.
Friday 3rd September 2010
A court in South Africa has ruled that all forms of online gambling are illegal and revealed that operators and players convicted of breaking the law could now face a fine of $1.3 million alongside up to ten years in prison.
South Africa banned all forms of gambling in 1965 with the exception of wagering on horse races but then allowed a limited number of casinos to open in its aboriginal areas beginning in the 1970s. These ‘Homelands’ were akin to the reservations seen in the United States with their casinos only allowed to serve South African citizens.
Following the election of Nelson Mandela as President in 1994, these special aboriginal areas were incorporated into the rest of the country and casino gambling legalised. Online gambling in South Africa is estimated to be worth up to $136 million a year and the administration of President Jacob Zuma was looking to licence, regulate and tax the industry through the proposed National Gambling Amendment Bill. The government was awaiting the publication of a special report into online gambling by its Ministry Of Trade And Industry before proceeding but the North Gauteng High Court stepped earlier this week to institute its total ban.
Under the new regulations, Internet service providers in South Africa are responsible for blocking access to online gambling sites while financial institutions, in a move reminiscent of America’s Unlawful Internet Gambling Enforcement Act, are prohibited from processing transactions to and from banned domains.
“We approached the media to alert them of the judgement, which makes online casino operations illegal,” said the ironically named Lucky Lukhwareni from South Africa’s Gauteng Gambling Board.
“And, if they continue, we will have them arrested and fight for conviction.”
