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Gambling in South Africa has been heavily restricted since 1673, with South Africa's Gambling Act of 1965 officially banning all forms of gambling except betting on horse racing which existed as a sporting activity.

In the late 1970s casinos started operating in the bantustans (the nominally independent areas called homelands) of Bophuthatswana, Ciskei, Transkei and Venda. Only native South Africans lived there and most citizens couldn't access those gaming establishments. By 1995 an estimated 2000 illegal casinos were believed to be operating within the country. In 1994, when the new democratic government came to power, all forms of gambling were legalised. In 1996 the National Gambling Act instituted a system of licensed casinos and a single national lottery. Horse racing was also proclaimed gambling activity.^[1]

A gambling addiction (gambling disorder) is when the individual had developed a physical and psychological dependence (see symptoms of gambling addiction below). Compulsive gambler is the description preferred by Gamblers Anonymous, and it refers to any individual who feels they have lost control over their gambling.

The National Gambling Act of 1996 made provisions for the regulation of gambling activities and promotion of uniform norms and standards in relation to gambling throughout the country. It gave definitions to different gambling notions, described how the 40 gambling licenses should be distributed among the provinces and provided information on liability. It also established the National Gambling Board, an organisation responsible for the supervision and regulation of the gambling industry. This change in legislation saw the establishment of legal casinos, a national lottery and other forms of gaming.^[2]

In 2004, another National Gambling Act repealed the Act of 1996. And in 2008 The National Gambling Amendment Act was introduced.

• 2Types of gambling
• 3Online gambling

Prevalence and value[edit]

According to the 2006 study the most popular forms of gambling in South Africa were the National Lottery (96.9% participation), slot machines (27.7% participation), scratchcards (22.7% participation), charity jackpot competitions (11.6% participation) and horse racing betting (11.5% participation). 8.3% of respondents said they have never gambled and a further 5.5% characterised themselves as occasional game players with no regular forms of gambling.^[3]

In the 2006/2007 financial year licensed gross gambling revenue as monitored by the National Gambling Board totalled R13.52 billion, from R11.4 billion the previous year. 86.2 percent of that revenue was derived in casinos.^[4] In the same period the Board reported a total of 455 raids on and closures of presumed illegal gambling operations.^[5]

South Africa’s gambling revenues are projected to rise to R30 billion in 2019, according to a new report. The South African gambling industry – including casinos, sports betting, the National Lottery, limited payout machines and bingo – achieved gross gambling revenue of R26.3bn in 2016.

Types of gambling[edit]

South African National Lottery[edit]

The South African National Lottery was established in 2000 and has been in continuous operation since, apart from a suspension between April 2007 and October 2007. In its last year of operation transaction values totalled R3.972 billion, with an average of five million transactions per week, making it the most popular form of gambling in South Africa. South Africa known as one of the largest countries participate in UK49s lottery draw operated by Ladbrokes Coral.

Gambling revenue from the National Lottery is projected to increase to R2.33 billion in 2019.^[6]

Casinos[edit]

Casinos operate in all metropolitan areas in South Africa. With the largest being the Rio Casino Resort, which is also the largest casino in Africa and the fifth-largest casino in the world.^{[citation needed]} Tsogo Sun Montecasino, also located in Johannesburg, is another of South Africa's largest casinos.

Horse racing[edit]

On-track betting on horse races was the only legal form of gambling in South African until 1996. Due to its complexity and the difficulty of attracting new players it did not effectively compete with the newly introduced National Lottery and casino games.^[7]

Betting on horse races is controlled by Saftote and operated by Gold Circle in KwaZulu-Natal and the Western Cape and by Phumelela in the remainder of the country.^[8]

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Online gambling[edit]

Licensed gambling sites[edit]

Each of South Africa's nine provinces has a gambling and racing board. To offer online betting bookies must be licensed by one of these boards. Currently the Western Cape Gambling and Racing Board (WCGRB) is largest provider of online bookmaker licenses.^[9] South Africa residents can use these online betting sites legally. For bets involving horse racing 6% is deducted from winning to cover VAT. As of May 2012, no additional tax is charged to recreational bettors, and recreational gambling winnings are not considered income for income tax purposes.^[10]

Online gaming laws[edit]

The National Gambling Act 2004 prohibited both offering interactive gambling services and engaging in interactive games (games on the Internet).^[11] This rule applies to all online operators, licensed in any jurisdiction. It's however important to note interactive gambling relates specifically to games such as casino, poker and bingo. Online sports betting, online horse race betting and the business of bookmaking is lawful in South Africa, provided that the person conducting such business holds the necessary provincial bookmaker's licence(s), or is using a website with proper licence(s).

The National Gambling Amendment Act of 2008 that was published in July 2008 was meant to be an attempt to legalise interactive gambling in the country and make provisions for the regulation of this market. The Amendment Act was actively confronted by the interested parties (land-based gambling houses and anti-money laundering authorities). For this reason, the Act hasn't come into power yet.

On 20 August 2010 even online gambling offered through servers located outside the country was banned in South Africa. This was the result of the North Gauteng High Court judgement on the jurisdiction of online gambling transactions in the country. Consequently, both offering gambling services online and gambling online became illegal. The only exceptions are province licensed horse racing and online sports betting. Casino sites, individuals, internet service providers and banks that process payments for online gamblers are subject to a fine of R 10 million or 10 years of imprisonment, or both. Mass media channels that transmit or facilitate advertisement of online gambling services (TV and radio, newspapers and magazines, outdoor advertising agencies) are also to be held liable.^[12]

The South African Department of Trade and Industry also suggested to consider penny auctions a type of online gambling and illegalise them. The National Gambling Amendment Act of 2008 may come into force after an appeal to a high court ruling against 'interactive gambling' is heard.^[13]

References[edit]

1. ^Stephen P. Rule; Terezinha Da Silva; Chris Sibanyoni (2000). The Social Impact of Gambling in South Africa. HSRC Press. p. 8. ISBN0-7969-1971-2.
2. ^National Gambling Act, 1996 [No. 33 of 1996] – G 17307
3. ^'Problem Gambling Prevalence Study 2006'(PDF). National Responsible Gambling Programme. Archived from the original(PDF) on 9 October 2006. Retrieved 22 September 2008.
4. ^'National gambling statistics for the financial year ending 31 March 2007'. National Gambling Board. Archived from the original on 7 October 2008. Retrieved 22 September 2008.
5. ^'Illegal Gambling statistics for the financial year ending 31 March 2006'. National Gambling Board. Archived from the original on 6 August 2007. Retrieved 22 September 2008.
6. ^'How much is the South African gambling market worth?'. www.bettinggods.com. Retrieved 6 January 2018.
7. ^'Speech by Thibedi Majake (CEO of the National Gambling Board) at the 2006 national convention of Racing South Africa'. Racing South Africa. Retrieved 22 September 2008.^{[dead link]}
8. ^'Sport: Horse racing in South Africa'. SouthAfrica.info. Archived from the original on 16 September 2008. Retrieved 22 September 2008.
9. ^WCGRB Licensed Betting Sites
10. ^Legal South Africa Betting Sites
11. ^'Online Gambling Remains Unlawful in South Africa'. Archived from the original on 26 April 2012. Retrieved 2 December 2011.
12. ^Online Gambling Banned in Africa
13. ^Online Gambling in SA: Is It Legal?

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Fri, May 24, 1:58pm by Mia Chapman

Last Updated Tue, Oct 8, 12:24am

Some people place gaming and gambling into different categories, while others look at them as one in the same. For these latter individuals, both words refer to wagering money at games like pokies, roulette, and blackjack in the hopes of winning even larger sums of cash.

The average bloke tends to refer to the hobby as gambling, because that’s exactly what the definition of the word refers to. Whether they’re wagering money at a land-based casino or in the back of their local pub, they’re not ashamed to admit that they’re gambling.

The gambling industry, however, isn’t too fond of the word “gambling.” They think it presents their customers as greedy deviants and unlucky losers, as well as fostering the idea that casino games are a major risk to the player’s wallet (which is correct). To combat this negative stereotype, they cooked up the word “gaming” and started using it in place of gambling. It makes the process of wagering money sound more fun and less random, which is a great way to draw more patrons into their establishments.

In summary, anyone who uses the word “gaming” around a casino is probably an industry insider. If they call it “gambling,” then they’re likely a regular individual. But either way, they’re talking about the same thing.

A Stark Difference

For others, the terms “gaming” and “gambling” mean entirely different things. In the next two sections, I’ll define the terms and offer a number of examples.

Types of Gaming

If someone uses the term “gaming” and they’re not talking about pastimes such as poker or blackjack, then they may be talking about one of the following hobbies:

Video Games – It might surprise you to know that video games were being patented as early as the 1940s. However, it wasn’t until Atari came out with Pong in the 1970s that the video game revolution got underway. Arcades thrived during the ‘70s and early ‘80s, and home gaming consoles by Atari, ColecoVision, and others started appearing in homes in record numbers.

The second half of the ‘80s saw another boom in the industry with the release of the original Nintendo, and advances in technology slowly resulted in the decline of arcades in favour of more sophisticated home systems.

The video game revolution is still underway, as systems such as Nintendo, Xbox, and Playstation amass record sales for home and portable use. The age of the Internet is also involved, as multi-player online games like World of Warcraft bring in droves of new subscribers each year. (See also: Video Casino Games)

Miniature Wargaming – The hobby of miniature wargaming has been around for centuries, and you can still find it alive and well at hobby shops and gaming conventions. Intricate miniature figures comprise entire armies, and players use a complex series of rules to manoeuvre them around detailed landscapes and engage in battles. These armies can take the form of actual troops from history, while others are comprised of fantasy creatures such as orcs and dwarves.

Role-playing Games – Popularized by the release of Gary Gygax’s Dungeons & Dragons, role-playing games allow players to take on the persona of a fictional character and engage in all manner of adventures. Numerous genres are available, from horror RPGs such as Call of Cthulhu to sci-fi games like Nova Praxis.

Varieties of Gambling

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If someone is talking about games of chance, there’s a strong chance they’re discussing one of the following:

Poker – Players compete against one another to make a poker hand with the highest rank. Numerous variations of the game exist, but the current favourite is known as Texas hold’em. This is due to the success of amateur players like Chris Moneymaker at the World Series of Poker Main Event, where the winning individual walks away with millions of dollars.

Blackjack – The objective of this popular casino game is to get as close to 21 as possible without going over (and having a higher total than the dealer in the process). The art of card counting can greatly increase a player’s chances of success.

Sports Betting – Players wager money on various sporting events, from football to auto racing. The payout for a win is determined in advanced by fixed odds.

Craps – The player rolls a pair of dice and attempts to throw certain totals while avoiding other numbers. Those not currently shooting the dice can also bet on the outcome. A wide range of betting options is available, and craps is known for its community experience.

Pokies – Called slot machines in other parts of the world, pokies offer various cash prizes for players who match various symbols on the machine’s spinning reels. Pokies have become more advanced in the last decade, especially those featuring audio and video clips from popular movies and TV shows.

Video Poker – The player receives a hand of five cards on a video screen, and they can then opt to exchange one or all of their cards for new ones. In order to win, their final hand must usually contain a pair of jacks or better. With perfect play, the house edge can be eliminated.

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Keno – Similar to the lottery, keno allows players to choose a series of numbers. A drawing of 20 numbers is then held, and the player wins money for all numbers that result in a match. In the history of keno, no player has ever matched all 20 numbers.

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For some, gaming may mean pokies or blackjack, while others may limit the definition to pastimes such as video games or role-playing; meanwhile, gambling is almost universally regarded as participating in various games of chance, although the connotations of the word can range from neutral to quite negative. Keep in mind these are just terms and whether you game or gamble, most importantly, enjoy it.