It depends on who you ask, is the short answer. For instance, if you ask the thousands of South Africans who actively gamble online every day, no doubt most would say no, claiming that they’re not hurting anyone by their actions and are simply exercising their choice.
If you speak to the companies that own the country’s 38 licensed land casinos, however, doubtless all they would say yes, because they would prefer to see all gambling revenues in South Africa generated by their properties, and not lost to offshore gaming firms.
Then again, if you asked the gaming firms that own and operate online and mobile casinos that welcome South African players, they would no doubt say they don’t care. Why would they as long as business is good and South Africans continue flocking to their sites, eager to claim generous no deposit bonuses, make deposits and experience the casino games.
The reason these casino sites are not concerned about South Africa’s online gambling laws, or lack thereof, is that they’re owned, operated and hosted offshore. In other words they fall outside of South Africa’s legal and judicial system and are therefore not obligated or bound by its laws and regulations.
There are Many ‘South African-Friendly’ Gambling Sites
While many of these sites seem to be 100% South African based on their URLs, designs, colours, currency (ZAR), bonuses, promotions and even language (the use of South African jargon), what they are is ‘South African-friendly’, despite appearances. All they’ve done is launched casino sites that ‘open their doors’ to players from SA, and then wait for them to enter of their own free will, and follow simple steps to get started.
They cater to South Africans by offering ZAR as one of their currencies, as well as bonuses and promotions in ZAR. And for as long as players from South Africa keep seeking them out, signing up with them and making deposits, ‘Rand online casinos’ will continue to accept South Africans simply to meet ‘supply and demand.’
They are not concerned about whether online gambling is legal or illegal in South Africa, and why should they be? Every country in the world is responsible for its own citizens, laws and regulations, and while South Africans are (still) free to use the internet to access any sites theirs included, they will always be happy to accommodate them.
But taking the legalities out of the equation, most prominent online casino operators would argue that all they are doing is giving adults (people over the age of 18) access to a broad range of casino games like slots, video poker, blackjack, roulette, baccarat, keno, craps, progressives and many more.
Online Casino Games Rival the Best Land Casino Games
And not just any online casino games, but titles from the world’s best software developers that rival the best and fairest odds and RTP (return to player) of those of their land casino counterparts. In fact, there are some casino software vendors that design and develop games for many of the world’s most popular online, mobile and land casinos.
To make it quick and easy for South Africans to make deposits and withdrawals, most SA online casinos process a variety of tried and trusted banking methods including credit and debit cards (Visa and MasterCard), eWallets (Neteller, Skrill and EcoPayz), electronic funds transfer (EasyEFT and SID Instant EFT), wire transfer and even the world’s first digital or cryptocurrency, Bitcoin.
Essentially most licensed and regulated online casinos have one main goal which is to attract and sign up as many players as possible, regardless of where in the world they live. Many, though not all, are especially partial to players from nations or territories with unregulated online gambling industries like South Africa.
This is because there is nothing to stop them from attracting players in these countries. This is not the case, however, for players based in nations with legalised and regulated online gambling industries, like the UK for instance.
Many Nations Have Chosen to License Online Gaming Sites
In those nations, lawmakers have drawn a line in the sand when it comes to online gaming, which means they allow some or all types of online gambling, but only at gambling sites that have applied for and been granted licenses to operate in that country.
Unlicensed gaming sites that accept players from regulated countries face prosecution and extremely hefty fines. This is why whenever a particular country passes pro-online gambling laws and legislation, many casinos send out notices immediately to say that they no longer accept players from that country. If they get a license to operate in that country, they’ll start accepting players from it again.
This would also apply to all of the South African-friendly online casinos if South Africa went the route of legalising, regulating and taxing its online gambling industry, which it doesn’t look like doing anytime soon, although this was not always the case.
In 2004 during the presidency of Thabo Mbeki, the government seemed very interested in regulating the country’s online gambling industry. Acknowledging the tremendous and growing popularity of online gambling in SA, coupled with the millions of Rand in lost (untaxed) gambling revenues, the National Gambling Association (NGA) requested that the National Gambling Board (NGB) form a committee to investigate regulation.
National Gambling Amendment Act Stalled in 2008
Four years later in 2008, the government came up with the National Gambling Amendment Act, a comprehensive framework designed around the legalisation and regulation of online gambling in South Africa. Just as supporters of a liberalised South African online (remote or interactive) gambling were preparing to kick off the celebrations, the Act stalled that same year, and has remained so since.
This non-action left the remote gaming industry in a state of flux, relegating it to something of a ‘grey area.’ During this period both domestic and foreign online gaming operators ramped up their efforts to attract South African players under the premise, albeit false, that the new pro-online gambling legislation would be passed any day.
At the same time, the government pushed for the establishment of the Gambling Review Commission (GRC) which was tasked with examining the pros and cons of regulating South Africa’s interactive gambling industry. In 2010 the GRC published a report supporting a legalised and regulated industry. However, this report was not at all well received by the government, who effectively shelved it and its pro-online gambling recommendations.
A year later in 2011, online gambling in SA received another blow in a landmark ruling from the Supreme Court of Appeal. In that case between a Swaziland-based gaming operator and owner of the then highly popular Piggs Peak Casino and the Gauteng Gambling Board (GGB), the court in essence concluded that regardless of a where in the world a remote gaming firm hosts its servers, it is illegal if its facilities and services are accessed in South Africa.
National Gambling Act of 2004 Still in Place Today
The ruling was made with reference to the National Gambling Act of 2004 (NGA), which then as it does still does today, makes no allowances for remote gambling, thus making the online activity illegal by default. Permitted forms of gambling in South Africa under the Act include land casinos, the National Lottery, limited pay-out machines (like those in some bars and clubs), sports betting, bingo and horse race betting.
Today any South African found to be gambling online, whether at a casino, a poker room or a bingo hall, is considered to be in contravention of the law, as are any operators found to be hosting gaming sites in South Africa for South Africans. This will remain the status quo as long as South Africa’s gambling laws are not amended.
