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Blow to online gambling

By Kim Helfrich
November 29, 2006

JOHANNESBURG – Operators offering online gambling and those who indulge in it face fines of up to R10 million and/or 10 years in prison following a landmark ruling in the Pretoria High Court.

At present the court ruling was applicable only to “casino-style gambling”, said Gauteng Gambling Board legal manager Edward Lalumbe.

“We have not ruled out the possibility of going after other operators, including those offering access to Lotto in other countries.”

South Africa does not issue licences for online casinos, and it was this that finally brought the provincial gambling authority along with the National Gambling Board and the Minister of Trade and Industry to court.

It was maintained that Swaziland-registered Piggs Peak Casino could not offer online gambling to punters in SA.

This is because SA does not have the necessary legislation to issue online gambling licences.

“A gambling operator offering online gambling needs to have a licence issued for this purpose in SA, and even though the owners of the Swaziland casino have an Internet licence, it is valid only for that country.”

The court’s decision confirms that Internet operators offering online gambling to South Africans, and players/punters taking part, are doing so illegally.

Internet service providers, financial service providers, TV stations and the print media were named in court as facilitating online gambling, also deemed illegal by the decision.

“Our overall motivation for taking the matter to court was it was facilitating illegal activity,” Lalumbe said, adding law-enforcement agencies including the Asset Forfeiture Unit and financial institutions had been consulted prior to the decision to go to court.

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