South African Parliament passes online gambling bill

The Bill, which was introduced by the Department of Trade and Industry, seeks to "provide a legal basis for the regulation and control of all licensed gambling activities; preserve the integrity of the Republic as a responsible global citizen by ensuring an efficient and effective gambling regulatory regime; promote the development of a responsible gambling industry in the Republic; ensure that all gambling activities are conducted responsibly, fairly and honestly”.

“It also aims to ensure that all players are treated fairly and that the privacy of a player is respected; protect minors and other vulnerable persons from the negative effects of gambling; protect and advance the interests of historically disadvantaged persons; protect society against the over-stimulation of the demand for gambling; prevent gambling from being a source of, or associated with crime or disorder, or used to support crime, disorder or money laundering,'' stated RSA National Gambling Amendment Bill.

Members of the ruling ANC had made attempts to block the Bill, believing gambling to be 'an evil activity', with some calling for the government to follow the lead of the US and choose prohibition over regulation.

Now that the National Gambling Amendment Bill has received approval from Parliament, it will now pass to the National Council of Provinces for final approval before being signed into law by President Thabo Mbeki.

The Bill could still face hurdles before it can become an effective piece of legislation, with the taxation issue yet to be finalized. Existing land operators will be lobbying for a tax rate which ensures a level playing field but online gambling companies traditionally operate out of tax havens with very low tax rates.