South African iGaming Regulation Unlikely in Near Future

Despite big hopes and attempts by lawmakers to advance the subject, it seems that online gambling regulation in South Africa is still far off.

Hardline Stance against Online Gambling

Last week, South Africa's Minister for Trade and Industry Rob Davies announced that the country's hardline stance against online gambling is just going to get rougher.

"Anyone operating illegally under the presumption that eventually they will be legalised ought to understand that they will not get a licence for this," said Davis, adding: "South Africans participating on online gambling have no defence or recourse if they get rip-off. We are also talking to institutions that are dealing with money laundering to ensure that banks are not processing such transaction."

National Gambling Board Investigation

The minister was speaking at the Portfolio Committee on Trade and Industry, where he discussed preliminary findings of a forensic investigation into the affairs of the country's National Gambling Board (NGB). The findings were unflattering to the NGB to say the least: The figures show 3.6 million South African Rands in irregular expenditure and other monetary irregularities. According to Davies, the NGB also holds an office that is double the size that it actually requires.

How this will affect online gambling regulation is unclear at the moment, but it is probable that suspicion towards the proponents of regulation could rise, as remarks by member of the African National Congress party (ANC) Priscilla Tozama Mantashe show. During the committee's proceedings, Mantashe questioned the motives of online gambling supporters, implying that they prey on the poor for their lack of understanding of the subject.

What's Next?

Despite the hardline stance taken by the government and DTI at the moment, online gambling regulation will not become extinct in South Africa. Events like the annual Big Africa Gaming Summit and diligence of lawmakers such as Shadow Minister for Trade and Industry Geordin Hill-Lewis will keep the boat afloat until the right time comes.