South Africa is not a nation with a strong reputation for permissive gambling laws. Prior to 1994, all forms of gambling were outlawed in South Africa. Some relaxation in legislation has occurred since 1994, which now allows residents of South Africa and tourists visiting the nation to gamble in licensed, land-based casinos. It is also now allowed for customers to make wagers on sporting events online. However, online casinos are still banned across South Africa.
New legislation introduced in 2010 made it even harder for residents of South Africa to gamble online, as offshore providers and any online casino operator based outside of South Africa became barred from offering their services to South African citizens. As things stand, it remains illegal for anyone to access online casinos from an IP address based in South Africa.
Stiff Penalties
Anyone found to be breaking the rules and gambling online, outside of the limited number of licensed and regulated operators, will find themselves facing stiff penalties for doing so. Any individual, casino or bank found to be facilitating illegal gambling online can face up to 10 years’ imprisonment and a fine as high as 10 million Rand, which is the equivalent of close to £500,000. Any person or entity found to be making a profit from online gambling within South Africa’s borders is required to transfer that profit immediately to a treasury trust account.
Growth Industry
Despite the long history of the prohibition on most forms of gambling in South Africa, it remains a popular pastime for many. Estimates suggest the gambling industry in South Africa, even limited as it is, generates revenue in the region of 35 billion Rand annually, with experts predicting year on year growth of around 6%.
A recent amendment to gambling legislation in South Africa could be the start of more permissive regulations for licensed online gambling in some areas from 2021. The amendment, which was introduced in 2018, remains a bill till the end of 2020 and has not yet passed into law. However, should it be passed, it could open the doors for huge increases in revenue for the South African nation. Land casinos already attract millions of visitors each year and generate plenty of revenue, a percentage of which goes directly to the state in the form of taxes.
Gambling Popularity
Gambling is relatively popular across South Africa, even with most people restricted from playing online. One study estimates that as many as one in ten South African adults will gamble frequently, spending the equivalent of US$13 billion at betting venues per year. Although the ban effectively remains in place, online gambling does still occur in South Africa, with many operators getting around the legal issues by providing services from servers based at offshore locations rather than within the country’s borders. Should the new amendment to the bill pass into law, South Africa could see a proliferation of local online casinos in the near future.
As gambling becomes more popular across South Africa both online and in real life, many people are seeking to better learn the rules of some of the most popular games. Some casino games, such as slots, require minimal knowledge before being enjoyed. However, understanding the rules behind poker betting is essential before sitting down to play. Many online casino websites offer tutorials, instructions and practice tables so new players can absorb the rules and gain a thorough understanding of the games before they commit to risking any real money.
Socioeconomic Benefits of Online Casinos
There are multiple prospective benefits to societies that allow more permissive gambling rules. The casino business generates huge amounts of revenue both online and at land venues. When this revenue is legalised and properly taxed, the cities and nations receiving the tax often see large spikes in income. Las Vegas alone is said to generate approximately $6 billion in tax dollars directly to the federal government. The government of Macau receives more than twice this, with $13 billion per year in tax generated by the casino industry.
Casino also facilitates job creation, often in areas where employment rates are low. Online casinos may not require as many employees as a land venue, but they still create new jobs, in areas as diverse as software development, customer service and website design. The tourist industry is another area that often sees a positive boost when new casinos enter an area. Online casinos may not draw tourists in the same way as land casinos, but more permissive gambling laws help to attract new business across multiple industries.
Entertainment
In the modern age, more of us turn to our smartphones and other devices as our primary form of entertainment. Casinos are one form of entertainment that have international appeal. Allowing citizens to play at online casinos helps to keep people entertained at the same time as opening the doors for potentially huge boosts in national revenue when those online and mobile casinos are properly licensed and taxed.
South Africa may be a way off from allowing citizens full access to online casino games. However, small changes in legislation over the years show that the state is moving incrementally forward in terms of making gambling legislation more permissive. With the 2018 amendment still on the table, it could be that 2021 is the year that South Africans can gamble at locally operated online casino websites for the first time.
