South Africa: new gambling licences on hold

Until this framework was established — a process likely to take more than a year — online gambling would remain illegal and the National Gambling Board would continue working with the Reserve Bank and the Banking Association of Southern Africa to ensure winnings from this activity were confiscated.

Parliament’s trade and industry committee will hold public hearings on the commission’s report during the next session and will make recommendations to the minister regarding which legislative amendments would be introduced.

Davies’s comments at a media briefing echoed the concern of the commission, which said “there appears to be pressure building from the gambling industry and from regulators to allow more gambling activities. In the absence of a clear policy and regulatory framework, this has the potential to increase dramatically the level of demand for gambling, and may not readily be contained."

Davies noted that the gambling industry had grown at a compound real rate of 9% over the past decade, compared with an economic growth rate of about half that figure.

The commission’s report noted that the industry generated an annual revenue of about R18bn (including the national lottery), contributed R1,5bn in tax for provincial governments in 2009 and employed about 57000 people. It recommended the number of casino licences be limited to the present 40, a move which Casino Association of SA CE Auret van Heerden said would not be problematic.