Despite rulings against Casino
Enterprises in South Africa court, it appears that great things are in favor of
the online casino gambling industry as a whole in South Africa. What started out
as a personal battle of Casino Enterprises against the Gauteng Gambling Board,
has brought about close examination of the gambling laws of South Africa -
specifically, Section 11 of the National Gambling Act 2004.
Considering Africa's concurrent
jurisdiction in regards to provincial gambling boards, all online gambling
activities in Africa are deemed illegal, no matter which jurisdiction they take
place in. Casino Enterprises, who operates out of Swaziland, initially argued to
the courts that Swaziland falls outside of South African jurisdiction. However,
the Gauteng province of South Africa stepped up to the plate to argue that
Casino Enterprises offers services to its residents, thereby putting them in
violation of regulatory laws.
A judge in the Transvaal Provincial
Division of the High Court of South Africa dismissed the legal summons of Casino
Enterprises on November 27, 2006 (thus preventing the case from going to trial)
on the grounds that Section 11 of the National Gambling Act clearly stated the
legality of online casino gambling in South African provinces. In other words,
the Guateng Gambling Board won its argument. However, the judge also gave Casino
Enterprises fifteen days of leave to amend its summons, during which time Casino
Enterprises also has the right to appeal the decision.
While it appears the case is still
not over, the way current legislation is drawn up does not look as if it will
help Casino Enterprises in their argument. However, this same time next year
will be host to an entirely different regulatory landscape in South Africa.
Provisions of the National Gambling Act 2004, which call for the National
Gambling Board of South Africa to establish online gambling regulations from
within two years of the act going into law - in other words, now - have been
making headway in Parliament in the last month alone.
It is expected that South Africa
will legalize online casino gambling, and will be issuing online casino licenses
as early as the fourth quarter of 2007. A worse case scenario for Casino
Enterprises is they will have to wait until that time to begin offering their
services again.