Sa Gambling Legislation
Lottery and Gaming (Poker) Variation Regulations 2015
New legislative and regulatory requirements have recently come into effect as part of South Australia's significant gambling reforms. Visit the CBS website for more details. Help with problem gambling Apply for a gaming licence. South Australian legislation, including current and historical versions of Acts, regulations and rules made by the Governor, aquaculture policies, environment protection policies and proclamations and notices made by the Governor. Gaming machine licensees or venue operators must stay well informed and keep themselves up to date with gaming regulations in South Australia. New legislative and regulatory requirements have recently come into effect as part of South Australia's significant gambling reforms. From 3 December, significant gambling reforms have come into effect in South Australia. There are changes and new requirements for licensees.
On 17 December 2015 the Governor made the Lottery and Gaming (Poker) Variation Regulations 2015 that set out the forms of poker that can be played in a public place. The Variation Regulations commence on 1 January 2016.
The draft Lottery and Gaming (Poker) Variation Regulations were the subject of public consultation on the yourSAy website. The final regulations address many of the suggestions provided as part of the public consultation.
Lottery and Gaming Variation Regulations 2013
On 12 September 2013, the Governor made the Lottery and Gaming Variation Regulations 2013 that declares an amusement machine with the characteristics of a gaming machine to be an instrument of unlawful gaming. The characteristics of a gaming machine are defined in the regulation.
The Lottery and Gaming Variation Regulations 2013 came into operation on 1 January 2014.
Two rounds of public consultation informed the development of the regulation.
In South Australia, electronic gaming machines are only permitted in licensed premises, in gaming areas that are not available to minors. However, community concerns have been raised about some arcade games that are available to minors yet may be considered to be similar to gaming machines. Section 59A of the Lottery and Gaming Act 1936 provides the Governor with the power to declare any machine, article or thing to be an instrument of unlawful gaming.
The main objective of a declaration of an instrument of unlawful gaming is the protection of minors from being exposed to ‘soft’ gambling. A secondary objective is clearer guidance to industry on what is prohibited.
The outcome of the consultation was to have a clearer definition of games that should be prohibited. It is not the intention to prohibit all forms of arcade and other games, only those which could be considered ‘soft’ gambling and are therefore inappropriate for minors.
Submissions for the first public consultation on aspects of unlawful instruments of gaming and the impacts on industry, the community and problem gambling closed on Friday 13 May 2011.
Submissions for the second round of public consultation, including the draft regulation closed on Friday 8 March 2013.
The final policy paper and the submissions to the first round of public consultation are provided.
Submission to the second round of public consultation is attached.
Submissions to the Final Policy Paper
Submissions to the first round of public consultation
Policy Paper
Regulation of bookmakers
The policy paper about the regulation of bookmakers outlines the Government’s position on proposed changes to the Authorised Betting Operations Act 2000 first raised by the South Australian Bookmaker’s League in mid 2007.
Gambling Reform legislation
Statutes Amendment (Gambling Reform) Act 2013
The Statutes Amendment (Gambling Reform) Bill 2013 was passed, with amendments, by both Houses of Parliament on 27 July 2013.
It received Royal Assent on 8 August 2013.
The Statutes Amendment (Gambling Reform) Act 2013 (No. 37 of 2013) is available on the South Australian Legislation website.
Statutes Amendment (Gambling Reform) Bill 2013
The Minister for Business Services and Consumers, Hon John Rau MP, introduced the Statutes Amendment (Gambling Reform) Bill 2013 in Parliament on 1 May 2013.
The Bill aims to create better gaming regulation for hotel and club gaming venues and the Adelaide Casino, with greater support for staff and customers.
On Thursday, 29 August 2013 the Statutes Amendment (Gambling Reform) Act (Commencement) Proclamation 2013 was published in the South Australian Government Gazette.
Gambling license in South Africa
Gambling within South Africa was largely restricted for many years, dating back to around 1673. Almost all forms of gambling were officially banned in 1965 with the passing of the Gambling Act. Horse racing, which was still considered a sport for many years, was however still legal, and the only place where people could place bets. This ban on gambling meant many illegal casinos began to pop up. By 1995 there were an estimated 2000 illegal casinos within South Africa. Luckily, with the new democratic government in 1994, the ban on gambling was lifted with the National Gambling Act. By 1996 the first legally licensed casinos were established and a single national lottery was launched. The National Gambling Act was the start of a diverse gambling community within South Africa.
Gambling and licensing
Gambling within SA is highly regulated and is done so by the National Gambling Board as well as the gambling board of each individual province.
The entire process of applying for a license is relatively straightforward. You can apply for a national or provincial license. A national license is generally for those applying as a manufacturer, supplier, maintenance supplier, or for those wanting to work within the gambling industry. A provincial license is simply valid within the single province in which it was issued and is better suited to and casinos or similar.
Both licenses may be applied for and issued through the provincial gambling boards and can be done by visiting the appropriate website (as listed below) and downloading the forms. The websites are quite easy to navigate and the entire application process will take anywhere between three months to a year.
Cost of a South African Gambling License
The cost of applications varies from province to province. Here are two examples:
Western Cape
Casino operator new license application fee: R 479 300.00
Casino annual licensing fee: R 239 650.00
Gambling employee fee (new application and yearly fee): R129
Bookmaker new license application fee: R11 977
Bookmaker annual licensing fee: R2403
North West Province
Casino operator new license application fee: R230 000
Casino annual licensing fee: R 100 000
Casino employee licence fee: R500
Bookmaker new license application fee: R6000
Bookmaker annual licensing fee: R5000
Other considerations
A big part of obtaining a South African gambling license is the probity process. This, in short, is a KYC process on steroids and will take up the majority of your time, effort, energy and money. Legal fees to complete this process can amount to hundreds of thousands of rands. While we understand the reason for the process, when compared to other jurisdictions such as the UK, Malta and Curacao, the same process is less bureaucratic and less authoritarian in their approach which is the reason why they have a much more vibrant and active gaming industry.
Maintaining Your License
Licenses are generally valid for different time periods across the different provinces. To maintain your license you will need to pay a set yearly fee, as given in the above examples. Likewise, if you wish to work at another casino or to move the premises of your existing casino, then you will need to apply for such. Employee licenses are linked to the position which they hold with a specific operator. Every Gambling machine or device must also be registered in order to be considered legal.
National licensees will need to comply with the applicable provincial law within whichever provinces they are conducting business. Provincial licensees will obviously be expected to do the same.
Failure to pay taxes, levies or fees will jeopardise your license as will non-compliance with any of the laws set out in the National Gambling Act. A person convicted of an offence in terms of the National Gambling Act is ‘liable to a fine not exceeding R10 000 000, or to imprisonment for a period not exceeding 10 years, or to both a fine and such imprisonment.
If a licensee is in breach of a condition of a license they are ‘liable to an administrative penalty not exceeding 10% of the annual turnover of the licensee.
Gazette 12.5.2011 P1358
You may surrender your license by choice via written notification to the provincial licensing authority.
Reposting Requirements
Suspicious or illegal activity can be reported directly to the respective provincial gambling boards or the National Gambling Board itself.
Anti-money Laundering
South Africa has three acts which relate to Anti-money laundering: the Prevention of Organised Crime Act (POCA), Financial Intelligence Centre Act (FICA), and The Protection of Constitutional Democracy Against Terrorism and Related Activities Act (POCDATARA).
The main duties of accountable institutions include:
- Identifying and also verifying clients
- Reporting any suspicious transactions
- Keeping records
- Training staff
- Reporting cash transactions over the prescribed limit
- In conclusion, formulating and implementing internal rules
Each legal gambling institution must ensure that all the necessary policies, procedures and systems are in place whilst ensuring full compliance with the FICA Act.
South Africa has a Financial Intelligence Centre (FIC) which is run under the FICA Act. There is also a Money Laundering Advisory Council who works alongside FIC and advises the Minister of Finance. All information regarding money laundering activities must be reported to FIC who will then hand over to the appropriate authorities.
Sa Gambling Legislation 2017
TAX
Corporate tax in South Africa is set at a flat rate of 28% for all companies.
Although a withholding tax on winnings has been proposed since 2011, nothing has been set in stone.
Software Testing and Online Gambling
Any machine or device which needs calibration or certification must be tested by a licensed testing agent. The agent will need to make sure that the machine/device is compliant with the applicable standard. They record all test results and issue a report. The South African Bureau of Standards must then analyse the results and if found compliant they issue a letter of certification.
Online gambling is still illegal within South Africa except for online betting via a licensed South African bookmaker. Both the operation and advertisement of online casinos within South Africa are illegal acts.
Contact the South African Gambling Commission
For more information:
1. Gauteng:
www.ggb.org.za
2. Western Cape:
www.wcgrb.co.za
3. Eastern Cape:
www.ecgbb.co.za
4. Free State:
www.gla.fs.gov.za
5. Kwazulu Natal:
www.kzngambling.co.za
6. Mpumalanga:
www.mgb.org.za
7. North West:
www.nwgb.co.za
8. Limpopo:
www.lgb.org.za
9. Northern Cape:
www.ncgb.co.za
Alternative to a South African Gambling License
A curacao based gambling license is perfect for your business if you wish to offer services abroad. The license is regulated by the Government of Curacao and is accepted by all banks and payment service providers.
Sa Gambling Act
We work with the local authority assisting our clients with their gambling license needs, get in touch on Skype, WhatsApp or Email for further information.