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Gambling in South Africa has been heavily restricted since 1673, with South Africa's Gambling Act of 1965 officially banning all forms of gambling except betting on horse racing which existed as a sporting activity.

• South African Gambling Tax Records
• South Africa Sports Betting Tax
• South African Gambling Act
• South African Gambling Tax Calculator

In the late 1970s casinos started operating in the bantustans (the nominally independent areas called homelands) of Bophuthatswana, Ciskei, Transkei and Venda. Only native South Africans lived there and most citizens couldn't access those gaming establishments. By 1995 an estimated 2000 illegal casinos were believed to be operating within the country. In 1994, when the new democratic government came to power, all forms of gambling were legalised. In 1996 the National Gambling Act instituted a system of licensed casinos and a single national lottery. Horse racing was also proclaimed gambling activity.^[1]

However, you will still be required to pay tax on your South African assets, such as property that you rent out. What it means to financially emigrate from South Africa. Financial emigration is the process of making a formal application with the South African Reserve Bank (SARB) to become a non-resident of South Africa. Once you’ve undergone. The South African Revenue Service has been exploring the possibility of implementing a form of taxation on gambling winnings since the Minister of Finance’s Budget Speech in 2010. South Africa’s gambling revenues are projected to rise to R30 billion in 2019, according to a new report. The South African gambling industry – including casinos, sports betting, the National Lottery, limited payout machines and bingo – achieved gross gambling revenue of R26.3bn in 2016. Tax on lottery winnings in South Africa. The short answer is no, lotto, cash winnings, prizes and the sale of these type of tickets are not subject to tax in South Africa if they are conducted or authorized within the laws of South Africa. The Lotto is licensed by the government and is essentially tax free.

The National Gambling Act of 1996 made provisions for the regulation of gambling activities and promotion of uniform norms and standards in relation to gambling throughout the country. It gave definitions to different gambling notions, described how the 40 gambling licenses should be distributed among the provinces and provided information on liability. It also established the National Gambling Board, an organisation responsible for the supervision and regulation of the gambling industry. This change in legislation saw the establishment of legal casinos, a national lottery and other forms of gaming.^[2]

In 2004, another National Gambling Act repealed the Act of 1996. And in 2008 The National Gambling Amendment Act was introduced.

Prevalence and value[edit]

According to the 2006 study the most popular forms of gambling in South Africa were the National Lottery (96.9% participation), slot machines (27.7% participation), scratchcards (22.7% participation), charity jackpot competitions (11.6% participation) and horse racing betting (11.5% participation). 8.3% of respondents said they have never gambled and a further 5.5% characterised themselves as occasional game players with no regular forms of gambling.^[3]

In the 2006/2007 financial year licensed gross gambling revenue as monitored by the National Gambling Board totalled R13.52 billion, from R11.4 billion the previous year. 86.2 percent of that revenue was derived in casinos.^[4] In the same period the Board reported a total of 455 raids on and closures of presumed illegal gambling operations.^[5]

South Africa’s gambling revenues are projected to rise to R30 billion in 2019, according to a new report. The South African gambling industry – including casinos, sports betting, the National Lottery, limited payout machines and bingo – achieved gross gambling revenue of R26.3bn in 2016.

Types of gambling[edit]

South African National Lottery[edit]

The South African National Lottery was established in 2000 and has been in continuous operation since, apart from a suspension between April 2007 and October 2007. In its last year of operation transaction values totalled R3.972 billion, with an average of five million transactions per week, making it the most popular form of gambling in South Africa. South Africa known as one of the largest countries participate in UK49s lottery draw operated by Ladbrokes Coral.

Gambling revenue from the National Lottery is projected to increase to R2.33 billion in 2019.^[6]

Casinos[edit]

Casinos operate in all metropolitan areas in South Africa. With the largest being the Rio Casino Resort, which is also the largest casino in Africa and the fifth-largest casino in the world.^{[citation needed]} Tsogo Sun Montecasino, also located in Johannesburg, is another of South Africa's largest casinos.

Horse racing[edit]

South African Gambling Tax Records

On-track betting on horse races was the only legal form of gambling in South African until 1996. Due to its complexity and the difficulty of attracting new players it did not effectively compete with the newly introduced National Lottery and casino games.^[7]

Betting on horse races is controlled by Saftote and operated by Gold Circle in KwaZulu-Natal and the Western Cape and by Phumelela in the remainder of the country.^[8]

Online gambling[edit]

Licensed gambling sites[edit]

Each of South Africa's nine provinces has a gambling and racing board. To offer online betting bookies must be licensed by one of these boards. Currently the Western Cape Gambling and Racing Board (WCGRB) is largest provider of online bookmaker licenses.^[9] South Africa residents can use these online betting sites legally. For bets involving horse racing 6% is deducted from winning to cover VAT. As of May 2012, no additional tax is charged to recreational bettors, and recreational gambling winnings are not considered income for income tax purposes.^[10]

Online gaming laws[edit]

The National Gambling Act 2004 prohibited both offering interactive gambling services and engaging in interactive games (games on the Internet).^[11] This rule applies to all online operators, licensed in any jurisdiction. It's however important to note interactive gambling relates specifically to games such as casino, poker and bingo. Online sports betting, online horse race betting and the business of bookmaking is lawful in South Africa, provided that the person conducting such business holds the necessary provincial bookmaker's licence(s), or is using a website with proper licence(s).

The National Gambling Amendment Act of 2008 that was published in July 2008 was meant to be an attempt to legalise interactive gambling in the country and make provisions for the regulation of this market. The Amendment Act was actively confronted by the interested parties (land-based gambling houses and anti-money laundering authorities). For this reason, the Act hasn't come into power yet.

On 20 August 2010 even online gambling offered through servers located outside the country was banned in South Africa. This was the result of the North Gauteng High Court judgement on the jurisdiction of online gambling transactions in the country. Consequently, both offering gambling services online and gambling online became illegal. The only exceptions are province licensed horse racing and online sports betting. Casino sites, individuals, internet service providers and banks that process payments for online gamblers are subject to a fine of R 10 million or 10 years of imprisonment, or both. Mass media channels that transmit or facilitate advertisement of online gambling services (TV and radio, newspapers and magazines, outdoor advertising agencies) are also to be held liable.^[12]

The South African Department of Trade and Industry also suggested to consider penny auctions a type of online gambling and illegalise them. The National Gambling Amendment Act of 2008 may come into force after an appeal to a high court ruling against 'interactive gambling' is heard.^[13]

References[edit]

1. ^Stephen P. Rule; Terezinha Da Silva; Chris Sibanyoni (2000). The Social Impact of Gambling in South Africa. HSRC Press. p. 8. ISBN0-7969-1971-2.
2. ^National Gambling Act, 1996 [No. 33 of 1996] – G 17307
3. ^'Problem Gambling Prevalence Study 2006'(PDF). National Responsible Gambling Programme. Archived from the original(PDF) on 9 October 2006. Retrieved 22 September 2008.
4. ^'National gambling statistics for the financial year ending 31 March 2007'. National Gambling Board. Archived from the original on 7 October 2008. Retrieved 22 September 2008.
5. ^'Illegal Gambling statistics for the financial year ending 31 March 2006'. National Gambling Board. Archived from the original on 6 August 2007. Retrieved 22 September 2008.
6. ^'How much is the South African gambling market worth?'. www.bettinggods.com. Retrieved 6 January 2018.
7. ^'Speech by Thibedi Majake (CEO of the National Gambling Board) at the 2006 national convention of Racing South Africa'. Racing South Africa. Retrieved 22 September 2008.^{[dead link]}
8. ^'Sport: Horse racing in South Africa'. SouthAfrica.info. Archived from the original on 16 September 2008. Retrieved 22 September 2008.
9. ^WCGRB Licensed Betting Sites
10. ^Legal South Africa Betting Sites
11. ^'Online Gambling Remains Unlawful in South Africa'. Archived from the original on 26 April 2012. Retrieved 2 December 2011.
12. ^Online Gambling Banned in Africa
13. ^Online Gambling in SA: Is It Legal?

External links[edit]

As you’d expect from a country which has a long and complex history in many ways, South Africa’s attitude to gambling has been no less tortuous.

The very first definite legislation came into force as long ago as 1673 when all forms of gambling were banned, with severe punishments for those found to be breaking the law. It wasn’t until 1965, nearly 300 years later, that the laws were relaxed – and, even then, only slightly – as horseracing and betting on the races themselves was finally allowed. This was because it was classified as a sporting activity, not a gambling one.

During the 1970s casinos began to spring up around the country and by the mid-90s it was estimated that there were well over 2,000 establishments operating illegally all across South Africa. But with the end of apartheid there was a sudden sea change in the law.

The National Gambling Act of 1996 established a licensing system for the casinos which, it was hoped, would boost tourism and raise much needed tax revenue for a country throwing off the shackles of the old regime. The Act also permitted the establishment of South Africa’s first lottery and reclassified horseracing as a gambling activity, not a sporting one.

The rise of online gambling

While the Act did a great deal to transform gambling in the country it was only eight years later in 2004 when another piece of legislation was deemed necessary to account for the appearance of online gambling. The 2004 National Gambling Act prohibited South African operators from both offering and indulging in interactive gambling online to play casino, poker and bingo games, although sports betting was still permitted.

In 2008, moves were made to modify the law to allow the licensing of approved online casino games with the National Gambling Amendment Act. However, opposition was so strong from a number of interested parties including the owners of land-based casinos and anti-money laundering authorities that the Act never came to pass.

There was even worse news in 2010 for anyone hoping to play in online casinos when a law was passed banning all internet gambling, even where providers were located outside of the country. The penalties for breaking the law were also set at such a high level that operators, players and even those processing payments for gambling would be deterred by the fines of up to R10 million or jail sentences of up to 10 years.

A growing problem

But, as is often the case when activities are banned by law, this has had the opposite to the desired effect by fuelling an illegal gambling industry that seems to grow larger by the year. It’s hard to get precise figures, but it is believed that the epidemic proportions of illicit gambling, both online and in the real world, mean that there are many, many more than the estimated 2,000 illegal casinos and gambling dens that were believed to be operating back in the 1970s. To say this is a problem for the authorities is something of an understatement.

It’s also a financial headache for the country. According to figure put together by the governing body of land-based operators, the Casinos Association of South Africa, in 2018 the gross gambling revenue for the country dropped by 2%, something the CASA believes can be firmly laid at the door of the illegal operators. In total this amounts to around R 37, million, 36% of which would normally be heading for the government’s coffers in the form of taxes and fees.

The CEO of CASA, Themba Ngobese, has been nothing if not forthright on the subject saying that it’s a problem that “not only affects the bottom line of licensed casinos‚ but society at large‚ as tax revenues‚ employment opportunities and associated economic activities are suppressed”.

South Africa Sports Betting Tax

A further dimension to the issue comes from the fact that there have been links made between illegal gambling and organised crime in the country, although, when questioned, the police have said that they prioritise other more serious crimes such as armed robbery over and above breaking up illegal gambling dens.

South African Gambling Act

There’s very strong evidence to suggest that many of these continue to operate in plain sight in shopping malls up and down the country. Often these appear, on the outside at least, to be perfectly respectable internet cafes and lounges. But behind their darkened windows there are banks of computers connected to online gambling networks. Many also have security guards patrolling outside to deter any unwelcome visitors.

Learning from the UK?

Reformers who believe that the best way to tackle the issue of illegal gambling think that taking a leaf out of the UK’s book may be the answer. In 2006 the then Labour government brought in a whole raft of new laws to permit gambling and set up a regulator called The Gambling Commission. This coincided with the earliest days of online gambling and this has grown to become the biggest single sector in the UK.

Gambling online has never been more popular with residents of the UK. At the best online casinos, there is something for every type of player, for example, if you check out the quantity and quality of the games at the famous 888 casino, which is being widely regarded as the best provider of online casino games, you will understand why online gambling is currently so popular. With these games being such a hit in the UK, should the South African government be considering implementing similar laws? The games would likely be very popular, limiting the amount of illegal gambling which takes place within the country. By keeping a firm grip as well as working with the industry, not against it, The Gambling Commission has ensured that the industry is well-regulated and smooth running in the UK.

However, it would seem that South Africa is far from ready to head down this route with laws set to become even more strict that they are currently. In an amendment tabled in July 2018 by the Department of Trade and Industry it recommends a number of measures including banning dog racing, reducing potential payouts from land-based casinos and a crackdown on “hidden” entrances to gambling halls in shopping centres and arcades. To date the bill is still going through the legislative review process but it’s unlikely that any changes made to it will be major ones.

South African Gambling Tax Calculator

For those in favour of tighter regulations and greater restrictions on gambling it will be welcomed. For those who were hoping that a favourite pastime would soon be made easier it be a disappointment. But whether it has any effect on illegal gambling in the country remains to be seen.