South Africa Reconsidering Legalization of Online Casinos

Posted: May 20, 2012

Updated: October 4, 2017

South African government is reconsidering legalization of online gambling in the country after an exodus of players to foreign gambling sites.

Last year, the online gambling in South Africa became illegal when the legislators passed new set of South African gambling laws. However, this has led to an exodus of gamblers to offshore online casinos.

While the National Gambling Board (NGB) was created, it is seen as a powerless organization, which can’t stop bettors from pursuing internet betting in South Africa, which is easily accessible online.

Now, as gambling industry insiders claim, NGB is seeking tougher enforcement and together with law enforcement will be busting illegal betting dens. However, as NGB agrees, it can only close online casinos in South Africa if their servers are located within the country’s borders. Otherwise, it has no authority over foreign websites.

This is in sharp contrast to the United States government which feels it has an authority over busting any foreign site, even located on foreign soil, if one American happens to gamble over it.

Meanwhile, many gambling regulators are thinking about re-legalizing online casinos in South Africa. If it happens, only a handful of casinos will get a license to operate. If proceeded, it will take a couple of years, at least, before the online casinos, including any mobile casinos in South Africa, will begin to operate.

During this time, South African gamblers will continue to visit offshore sites and power up the tax revenues of foreign governments.

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