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Online Casino Conditions >>> Betting News >>> December News


Online Gambling Regulation to Take Place in all of South Africa

by Sheri Smith, News Staff
Writer
December 17, 2006

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.

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