gambling law

[Quantin21mSA]

I would like to know what the gambling law is in south Africa regarding,
poker games for cash. when can they fine me for gambling? can i host a
public tournament? what will the tax implications be?

[sandra]

CAPE TOWN (Reuters) - 08/05/2008 - South Africa's parliament approved a new Internet gambling law to regulate an industry plagued by crime and vulnerable to money laundering and terrorism financing, parliamentary papers showed on Monday.

Read more...

South Africa parliament approves Internet gambling law - Yahoo! Canada News


INTERNET LAW - THE SOUTH AFRICAN NATIONAL GAMBLING AMENDMENT BILL

Ira Piltz, Greenpoint Technologies

The South African National Gambling Amendment Bill (the “NGAB”) legalizes online gambling in South Africa and establishes a licensing and regulatory system for this industry. NGAB curtails the negative socioeconomic effects of an unregulated online gambling industry. The NGAB is still pending signature by the South Africa’s President.

In May 2008, the South African Parliament approved new legislation regulating online gambling in South Africa. The NGAB was drafted in response to a report conducted by South Africa's National Gambling Board (the “Board”), which found that the National Gambling Act 2004 had to be amended to include regulations for online gambling. NGAB's objective is, "to provide for the regulation of interactive gambling so as to protect society against the stimulation of the demand for gambling; to provide for the registration of players and opening of player accounts; to provide for the conditions applicable to interactive gambling licenses; to provide for further protection of minors and other persons vulnerable to the negative effects of gambling; … to prevent gambling from being associated with crime, money laundering or financing of terrorist and related activities."

The NGAB establishes rules for online players' registration and allows Websites to exclude certain group of players. It also requires that online gambling providers afford fairly treatment to their registered players. Dispute resolution procedures between players and online gambling operators are also set forth in the NGAB.


How does the NGAB ensure that minors and other protected persons are excluded from participating in online gambling?

The NGAB requires that online gambling providers protect minors and other vulnerable persons by posting notices stating that registered players must be at least 18 years old. Additionally, NGAB includes a method that allows South African authorities to establish mechanisms and procedures to ensure that unregistered players and children cannot access interactive gambling facilities.


What are some of the main provisions of the NGAB that govern the conduct of online gambling providers?

The National Gambling Board is the national body overseeing compliance of the NGAB's provisions.

Advertising: the NGAB includes provisions regulating advertisement of online gambling. Only licensed online gambling providers can advertise in South Africa, and such advertisers are subject to the same restrictions set out in the National Gambling Act for other forms of gambling. South African authorities are also authorized to further regulate online gambling advertising.

Licensing requirements: the NGAB gives South African authorities the right to set licensing requirements to comply with technical specifications, equipment standards, and software.

Privacy: Provisions in the NGAB allow for the monitoring and reporting of registered players' gambling habits to assist the National Gambling Board in detecting problems associated with addictive or compulsive gambling. The NGAB also requires online gambling providers to develop self-diagnosis systems to supply players with early warning signs.

Illegal activities: NGAB gives South African authorities the right to set control systems to prevent money laundering and other illegal activities. Internet gambling sites are obligated to report suspicious and illegal activities.

Delivery of prizes: section 9 of the NGAB states that if a player in an interactive game wins a monetary prize, the interactive provider must immediately credit the prize amount to the player's account and if the prize is non-monetary, the provider must:

"(a) have the prize delivered personally, by courier or by post to the player; or

(b) give the player written notice of an address within the Republic where the prize may be collected."


What is the procedure for dispute resolution between players and the interactive provider?

According to Section 6B of the NGAB, if there is a dispute arising out of an interactive game, either party may refer the dispute to the National Gambling Board. The NGAB must resolve the dispute in accordance with the complaints' resolution procedure.


What is the role of the National Gambling Board?

The role of the National Gambling Board is to enforce NGAB's provisions. According to the NGAB, the Board must "take reasonable steps to ensure" that "unlawful activities relating to interactive gambling and unlicensed interactive gambling activities are prevented, detected and prosecuted;" that "undertakings made by licensees, holding a license to make interactive games available, are carried out to the extent required by the license; to supervise and enforce compliance by licensees with the obligations of accountable institutions in terms of the Financial Intelligence Centre Act, to the extent required by that Act, in so far as it applies to the gambling industry."


See also...

Mary Ann Liebert, Inc. - Gaming Law Review - 9(4):318