South Africa to offer unlimited egaming licences
Government looks to promote "robust competition" while unlicensed operators could face jail time
South Africa’s new Remote Gambling Bill will not place a limit on the number of online gambling licences available, but will impose strict penalties for those targeting South African customers without a permit.
Details emerged after the first draft of the Bill was published in the South Africa Government Gazette yesterday by Democratic Alliance shadow minister of trade and industry Geordin Hill-Lewis.
Hill-Lewis proposed no limit on the number of licences issued by South Africa’s ten Provincial Licensing Authorities in order to promote “robust competition” and prevent operators from attempting to operate illegally.
Those found to be operating without a licence once the Bill has been passed could face a 10-year jail term, which will be doubled to 20 years for subsequent convictions. Breaches of the law while it is pending will result in penalties of up to 10% of turnover.
Other licensing measures include a one-year ban on re-applications for licences that are cancelled, and a three-year ban on re-applications should any licence be refused due to the applicant failing a “fit and proper persons” test.
Player protection measures set to be introduced include allowing players to set deposit limits and mandatory measures to prevent collusion and cheating, while debts incurred unlawfully by customers will not be able to be collected.
Yesterday’s publication of the Bill invites interested parties and institutions to submit written representations and comments to South Africa’s parliament secretary within a 30-day window which expires on 23 May 2014.
Comments will then be taken into consideration as the bill passes for debate in the Portfolio Committee on Trade and Industry prior to a parliamentary vote.
The entire process is estimated to take a further nine months, however this could be drawn out further should South Africa’s ruling African National Congress party oppose the bill or its contents during the debate phase.
“I would say nine months is a fair estimate of a bare minimum,” Wayne Lurie, director of South African gaming law firm Lurie said, leaving operators with little chance of receiving a licence before the year’s end.
News of the bill was first revealed by eGaming Review in January this year, proposing to radically overhaul South Africa’s online gaming laws by repealing the 2008 National gambling Act.