South African Online Gambling Takes A Turn For The Worst

Author: Anton Johan

For most South Africans, the glorious glow the nation took on by successfully hosting the epic 2010 FIFA World Cup a couple of months ago is fading fast, especially as the country is now being gripped by a series of costly and disruptive strikes, and its legal system has started to crack down on the rights of South Africans to gamble online.

While online gambling has always been something of a gray area in South Africa, a long-standing High Court case in Johannesburg involving leading Swaziland land and online casino group, Piggs Peak (which has always marketed itself to South Africans) came to a conclusion last week, where the court ruled against Piggs Peak's right to accept South African online gambling fans, and in one fell swoop effectively deeming online gambling to be illegal in the country.

So, it seems gray is completely out this season and black and white is in when it comes to online gambling in South Africa. The news has come as an enormous blow to everyone involved with online gambling in South Africa, from the operators and players, to the media companies and agencies that rely on online gambling advertising revenues through TV, print and billboard campaigns, and even banks that process online gambling-related payments.

South Africa sells itself as a new democracy, but can a country truly be considered a democracy if so few can decide what so many can and cannot do? I think not.

South Africa has always had a fondness for most things American, unfortunately that may also extend to its online gambling policies. In October 2006, U.S. Congress passed a bill that effectively made it illegal for Americans to gamble online. The bill, which was signed into law by George W. Bush, came under much fire, and still does, and has widely been called 'draconian' and even likened to the infamous Prohibition of the 1930s which single-handedly spawned organized crime.

However, while the American anti-online gambling law is designed to go after and prosecute U.S. banks, credits card companies and other financial institutions and not American online gamblers, it appears the South African anti-online gambling laws are not so lenient. They are designed to prosecute players as well as online casino operators to the full extent of the law, which could mean a maximum prison sentence of 10 years and/or a fine of up to R10 million (€1,07 million).

But like the American anti-online gambling laws, the South African anti-online gambling laws too will be difficult to enforce, which should come as some relief to South African online gambling fans. But nobody will want to be made an example of, so there's no doubt online gambling activity will decrease in the country. Following the High Court ruling, all eyes will be on what the operators will do. For instance, whether it'll be 'business as usual' and they'll continue to accept South African players, or whether they'll stop accepting SA players or even close down to avoid prosecution.

It's a great pity that South Africa isn't following the lead of a country like the UK, which has embraced online gambling by legalising and regulating it. As such, the UK government, and thus its citizens, benefit from the tens of millions of pounds in online gambling taxes, and the government closely monitors the online gambling operators it has granted licenses to as a way of ensuring they are fair and honest for the protection UK players. In addition, the UK government has programs in place to help combat and prevent underage and problem gambling.

South Africa take note.