Gambling News by Gambling Headquarters

A South African judge gave online gambling optimists pause for thought this week in a judgement that unlicensed gambling in the country was illegal. Online gamblers in South Africa could be fined up to Rands 10 million (GBP 735 000) or jailed for up to 10 years in terms of current legislation, which will hopefully be reversed if the government decides to follow recommendations to legalise the pastime following extensive research. But this week the ruling in the Pretoria High Court was against online gambling. Judge Willie Hartzenberg dismissed an application by Casino Enterprises of Swaziland to allow residents of the populous Gauteng province to gamble online. The casino had taken the Gauteng and the National Gambling Board, as well as the SA Minister of Trade and Industry, to court. The basis for the application was that although the wagering was done on personal computers in Gauteng, the gambling was in reality taking place in Swaziland. The casino stressed that because of this, the punters were not contravening the Gauteng Gambling Act. However, the application was strenuously opposed by the defendants, who argued that Casino Enterprises was not licensed to operate gambling activities in South Africa. In his ruling, Judge Hartzenberg noted: "In terms of section 15(1) of the National Act, nobody is allowed to advertise or promote any gambling activity in the Republic which is unlawful in terms of that act or applicable provincial law, and in terms of section 71(1) of the Gauteng act, nobody is allowed to advertise or disseminate any information relating to gambling in Gauteng in respect of which no license was issued." When parliament passed the gambling laws, it took a number of issues into consideration, including the fact that it had to guard against people gambling irresponsibly and becoming addicted. "It was recognised that gambling can be dangerous for individuals and that they have to be protected by way of controls," stated the judge, adding: "It was recognised that gambling can be a great source of revenue for the province, which, if wisely spent, can improve the standard of living." To ensure that the government achieved the goal of generating more revenue for its coffers, it had to institute proper controls.

"One thinks of licensing of casinos and of a levy on turnover.

"All monies spent on casino gambling must contribute to the coffers of the state or the province," said Judge Hartzenberg.

The only way that the government could ensure that it maintained proper controls of casino gambling was if only licensed casinos were permitted to operate, he added.

In dismissing the plaintiff's application, Judge Hartzenberg said: "It is difficult to see why the Swaziland legislation, in terms of which the plaintiff obtained its casino license, can have extra-territorial operation.

"In other words, why actions of the plaintiff within the borders of the Republic are sanctioned by the Swaziland license."

In a statement, the Gauteng Gambling Board hailed the court's decision as a groundbreaking one and maintained that online gambling was unlawful.

The board warned punters, organisations, banks and Internet providers which advertise or facilitate online gambling that they would be prosecuted. It said this would be enforced by monitoring Internet gambling.