South Africa with its location in the southern part of the African continent boast of a culture and beautiful natural attractions. It is connected to the Indian Ocean to the East and the Atlantic Ocean to the west while the neighboring countries are Namibia, Botswana, Zimbabwe, Mozambique, and Eswatini. In this step by step guide, you will find information about South Africa bookmakers and gambling laws, licensing, and the history of gambling legislations in the country.
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Table of Contents
Summary of Key Events
History of Gambling Laws in South Africa
The act of gambling has not been without its share of changes in South Africa due to the shifts in the legal framework of the country throughout the years. Here’s a detailed look at the key milestones:
- 1961: South Africa got its independence from the British imperialism.
- 1965: The legalization of gambling in South Africa was done by the passing of the Gambling Act.
- 1970 – 1995: This period witnessed the emergence of gambling especially the casinos which were located in black homelands. The crime rate was high; there was money laundering and corruption especially from organized crime.
- 1996: The National Gambling Act was passed enabling the national lottery, and allowing casinos in terms of the “Wiehahn Commission” report.
- 1997: The Act on Lotteries was adopted.
- 2000: The South African National Lottery Limited was created.
- 2008: The National Gambling Amendment Act of made some aspects of online gambling legal.
- 2022: Presenting of the 2022 Draft Remote Gambling Bill that is proposed to replace the current laws on online gambling in South Africa.
Contemporary Gambling Legal Framework
Although the legalization of gambling was granted in 1965, most of the forms of gambling were only fully legalized in 1996 with the National Gambling Act. The most relevant current bill is the National Gambling Amendment Act of 2008 that mostly replaces the 2004 National Gambling Act.
Permitted and Prohibited Bets
Online sports betting and online lotteries are allowed, however they are allowed only from licensed legal domestic operators or South African subsidiaries of the international operators. But casino gambling, poker, and bingo are prohibited in the online environment and are allowed only in the land-based establishments.
Key Legislation
- National Gambling Act of 2004: Describes general concepts of the legal gambling forms, norms, and policies.
- National Gambling Amendment Act of 2008: It was designed to revise the 2004 Act but was opposed and still to this date only partially enacted.
- Provincial Regulations: All the nine provinces of South Africa has its own regulatory body like Gauteng gambling board and Western cape gambling and racing board.
Licensing of South Africa Bookmakers
The gambling activities in South Africa are regulated by the National Gambling Board, which also deals with licensing of gambling operators. Various types of licenses are available, including:
- Casino Licenses: For the full service casinos.
- Bingo Licenses: In essence, it is mostly used in the e-casinos with gaming machines.
- Limited Pay-out Machine Route Licenses: For slot halls with limited machines.
- Bookmaker Licenses: For the sports betting operations.
- Totalizator Licenses: In pool betting.
- Online Betting Licenses: Such as for online sports betting and lotteries.
- Manufacturer Licenses: For those who engage in the production of gambling equipment.
Taxation and Fees
The tax rate varies by sector:The tax rate varies by sector:
- Land-Based Casinos: Normally falls in the range of 10 to 15 percent of the gross gaming revenue.
- Online Betting: Normally it is taxed between the range of 6-7% of the winning bets or the net gaming revenue.
South Africa Sports Betting
Sports betting is one of the most famous and legal ways of gambling in South Africa and regulated by the provincial and national legislation. The landscape includes:
- Permitted Bets: This includes a vast list of sports betting and betting on the occurrence of certain events.
- Regulation: Supervised by the National Gambling Board and the provincial regulators on the other hand.
- License Requirements: Sports betting is only possible if the operators have a bookmaker license to operate the service.
- Taxation: Operators are charged based on the gross winnings or the net gaming revenues.
- Online Betting: Legal for the licensed bookies and allows numerous forms of sports betting to take place through the internet.
Sporting Event Glory Milestones
- 1995: Rugby World Cup was won by South Africa this time, which can be said to represent the new democratic South Africa.
- 2003: The cricket World Cup was held in South Africa which made South Africa one of the leading nations in cricket.
- 2010: The South Africa soccer fans got a chance to host the FIFA World Cup and show just how much they loved soccer.
- 2019: The South Africa’s national rugby team, the Springboks clinched the Rugby World Cup title, thus enhancing their record.
- 2021: There were more than 30 licensed online sports betting sites in South Africa which shows the expansion of the industry.
Conclusion
The gambling industry in South Africa has rapidly developed since the first legalized gambling was allowed in 1965. It is today one of the most controlled industries that is under the supervision of both the national and the provincial governments with very strict laws that govern both the conventional and the internet gambling. Therefore, any businessmen who wants to make a business in South Africa should study the existing laws and get the required permits and licenses to avoid losses and legal punishments.
FAQ of South Africa Bookmakers
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