Online gambling in South Africa has a complicated and convoluted history. To this day, the gambling law isn’t clear, but many international online gambling sites continue to serve South African players, and the government hasn’t been too strict about the ban on online gambling.
In this blog, we explore the complex but interesting history of gambling in South Africa.
South Africa Gambling History: Overview
From the late 1600s on, South Africa enforced stringent laws against the gaming industry. Later in 1965, it became illegal to wager on anything other than horse races. However, this didn’t prevent South Africans from gambling anyhow.
Several casinos began operating in the Bantustans (homeland areas) that formed due to apartheid in the 1970s. It doesn’t make much sense, but these casinos were off-limits to locals because only native South Africans resided there. Still, the homelands became popular places to gamble, see shows, and enjoy leisure time. Some South Africans may have been able to gamble due to laxity in the identification-checking process.
In 1994 the law was altered to allow for legalizing new casinos and expanding those already in operation. Perhaps approximately 2,000 “casinos” operated throughout South Africa by 1995, even though, in some cases, these establishments consisted solely of a room with a few slot machines. The first casinos received their gambling licenses, and a national lottery was launched in 1996.
Alterations to Gambling in South Africa
The number of casinos in South Africa has decreased since the gambling laws were changed in 1994. It was costly to open and run a business while adhering to all licences and laws and fighting similarly-sized competition.
Today, South Africa is home to around 50 legal casinos, most of which may be found in the country’s major cities. Although gambling tastes differ among different players, most gamblers agree that the finest places to play are at full-fledged entertainment resorts managed by industry titans like Caesars and Sun International.
South Africans’ Love of Gambling
That South Africans enjoy gambling and online gambling was established by a study done in 2006. The National Lottery is the most popular type of gambling in the country, with 97% of lottery players.
Several different kinds of gambling also enjoy massive popularity. Around 28% of South Africans play slots, 23% buy scratch cards and 11.5% wager on horse races. Indeed, fewer than 10% of respondents claimed to have never placed a wager.
Gambling & Money
In South Africa, casinos contribute more than 86% of the R10 billion in annual income collected by the National Gambling Board. Remember that this sum does not include money made by foreign-based online casinos. The National Lottery is by far the most popular form of gambling in the country, responsible for spending R4 billion per fiscal year, with approximately 5 million transactions per week.
Gambling Sites Available to South Africans Online
South Africans regularly participate in online gambling. Some highly regarded sites, some of which hold gambling licenses in other jurisdictions, accept players from South Africa and the rest of the world. Ultimately, gambling is popular, and the authorities generally look the other way. This is primarily due to the government’s fear that full implementation of the gambling laws will run the activity deeper underground and lead to new providers engaging in fraud or cheating.
Because of the sheer number of people who engage in gambling. The government has primarily delayed taking action against providers that target South Africa. Otherwise, they would be highly challenged to go after each player.
The Legality of Gambling in South Africa
The legal status of online gambling in South Africa is not clearly defined at present. There have been changes in the laws regulating it. Initially, the government started issuing licenses to online gambling operators in 2004. Which made it seem like online gambling was legal and regulated in the country.
The National Gambling Amendment Act was passed in 2010, which prohibited all forms of online gambling except for sports betting. This law was challenged in court, and in 2011, the South African High Court declared online gambling as against the law under the 2004 National Gambling Act. Still, the Supreme Court of Appeals later overturned this decision in 2013, stating that the Act did not specifically prohibit online gambling.
Final Thoughts
Although the legality of online gambling in South Africa remains unclear, numerous international operators still provide their services to South African players. The government has not been strict in implementing the prohibition on online gambling. Nevertheless, it is important for players to recognize that online gambling with unregistered entities is still deemed unlawful under the 2010 amendment act. There is a certain level of risk involved when engaging in gambling activities online outside of South Africa licensed betting sites.
