The online gambling industry is booming all over the world. As more countries and jurisdictions legalise and regulate the activity, we’re seeing a huge number of new online casinos and gambling platforms open and begin to welcome players.
With a population of nearly 60 million, South Africa has long been an attractive target for online gambling companies and operators. Let’s take a look at the online gambling industry in the country and discuss the licenses South African online casinos need to have. Read on to find out more.
Gambling Legality in South Africa
For centuries, South Africa had strict laws in place banning all forms of gambling, except for horse racing. A change of government in 1994 brought about a raft of changes, including the legalization of all forms of gambling. The government passed the National Gambling Act in 1996, which established a number of officially licensed casinos, to replace the estimated 2000 illegal casinos in the country, and a national lottery.
The National Gambling Act also gave rise to the National Gambling Board, which is a body dedicated to the management and regulation of the South African gambling industry. The National Gambling Act was replaced by similar legislation in 2004 and then further amended in 2008.
It was this 2008 amendment that brought about the partial legalization of online gambling in South Africa. However, a 2010 court ruling threw a spanner in the works, and as a result, online gambling is still to be fully regulated in the country. Despite this, there are still a number of online casino sites available to South Africans, based both in and outside of the country.
How Popular is Online Gambling in South Africa?
The popularity of online gambling has skyrocketed all over the world. South Africa is certainly no exception, online gambling now accounts for 45% of the overall gambling market in the country.
Currently, sports betting is the most popular form of online gambling in South Africa. Players wager on football games across the world, notably games in the English Premier League. Sports betting brands like 10Bet (https://www.10bet.co.za) have flourished in the country, with sports betting representing nearly a quarter of the industry’s total revenue.
As well as football, sports such as cricket, rugby, golf, and horse racing are also popular among South African players.
However, current legislation does not permit betting on casino games in the country, only sports betting. Despite this, online casino games remain popular in South Africa. This is possible due to a particular loophole that operators have discovered.
By establishing traditional casino games as betting events rather than games, operators can make them fit within existing sports betting regulations and legally permit South African players to wager on them.
What Licenses must South African Online Casinos Have?
For operators looking to launch services in South Africa and begin offering sports betting and casino services for players, they must hold a license from one of the country’s nine provincial authorities.
Currently, the Western Cape Gambling and Racing Board is the country’s most progressive provincial body and has demonstrated a willingness and openness to work with online gambling brands. As a result, operators looking to expand into South Africa will usually do so with a license issued by the Western Cape Gambling and Racing Board.
To obtain this license, operators must pay a fee of around $800, a charge which is then incurred again on an annual basis. What’s more, gambling companies must undergo strict investigative procedures to ensure they are legitimate and working within the confines of the law. Gambling firms need to foot the bill for this process themselves, which can drive up the price of obtaining a South African online gambling license. A stake casino review is worth checking too.
Where is the South African Online Gambling Industry Heading?
Online gambling is driven by technology. As technology continues to develop and improve, we can expect to see the online gambling sector grow even further.
The South African online gambling industry will benefit from new technologies too, and we’re already beginning to see new products and services become available for players in the country.
Live dealer games, where a real-life dealer operating gaming equipment is streamed live, is an increasingly popular format. Live dealer games bridge the gap between online and in-person gambling, making for a highly realistic and immersive experience. We can expect to see live dealer games become more popular in South Africa and beyond as we head into the future.
Conclusion
To operate in the country, South African online casinos must hold a license from one of the country’s nine provincial authorities. It’s certainly worth the effort, as the South African online gambling industry is only going from strength to strength.
Be the first to comment