South Africa faces online gambling ban in government u-turn
Department of Trade and Industry leaves MPs "dumbfounded" after proposing to dismiss plans to regulated online gambling in favour of outright ban
Online gambling legislation in South Africa has come under threat after the country’s Department of Trade and Industry (DTI) proposed to ban all forms of the activity.
DTI officials yesterday tabled the proposals with the country’s National Gambling Policy Council, which in turn will finalise a draft policy before submitting it to the country’s Cabinet for final approval.
DTI deputy director-general Zodwa Ntuli and chief director MacDonald Netshitenzhe said that a ban on online gambling was designed to limit gambling to traditional forms, and that legalising it would not necessarily result in job creation.
Sources familiar with the matter told eGaming Review the DTI’s announcement left MPs “dumbfounded” and marked a complete u-turn, after all previous signs had pointed towards legislation that would liberalise the market.
A draft bill proposing to revolutionise South Africa’s online gambling laws first emerged in January this year before being introduced in April, a move which was hailed as “exciting” by operators in the country.
The country’s Democratic Alliance (DA) rebuked the DTI’s new proposals and DA shadow minister for trade and industry Geordin Hill-Lewis said it was a “very, very bad decision”.
“It is completely shortsighted to say that it is better for South Africans not to be allowed to gamble online when there is patently significant demand in the country to do that. It is for government to facilitate that in the safest way possible,” he said in a statement.
The new proposals are thought to be the result of mounting pressure from the industry and South Africa’s National Gambling Board to implement legislation, and that the DTI has responded by choosing the “far easier” option of banning the practice rather than drafting new legislature.
Speaking to eGR this morning, South African egaming lawyer Wayne Lurie said it was a “highly disappointing” decision by the DTI and that the country “could not continue” to ignore the market’s potential value.
However should the DTI continue to lobby against online gambling legislation, South Africa’s constitution allows for each of its individual provinces to legislate on certain matters for themselves.
While such a model would not be ideal for the market, Lurie said there would be nothing stopping the provinces from choosing to regulate online gambling and operate a model similar to how the US states of New Jersey, Delaware and Nevada have done.
South Africa’s Western Cape Province is thought to be the most likely province to regulate online gambling first should the DTI continue its opposition.