Sa Gambling Legislation

An Adelaide nightclub has agreed to suspend its operations until a COVID Management Plan is in place, following intervention from the state's Liquor and Gambling Commissioner. 14 July 2020 Pubs and nightclubs put on notice. 'The government must act immediately to bring loot boxes within the remit of gambling legislation and regulation,' said a statement accompanying the report. Loot boxes have long been controversial. An Adelaide nightclub has agreed to suspend its operations until a COVID Management Plan is in place, following intervention from the state's Liquor and Gambling Commissioner. 14 July 2020 Pubs and nightclubs put on notice. 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. As there are not a lot of online gambling options, sports betting is a preferred interactive entertainment by South African players. Online betting is legal as long as the bookmaker is legit and has the necessary licenses. Keep in mind that the gambling legislation has an eye on you as well.

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.

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.

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

Sa Gambling Act

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.

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.

To operate gaming machines (commonly known as poker machines or pokies) in South Australia you must have a gaming machine licence and hold a gaming machine entitlement for each gaming machine in your possession.

Gaming approvals

To have a gaming machine licence you must have, or have applied for, one of these liquor licences:

South Australian Legislation

• on premises liquor licence, but only if the nature of the business is similar to a licensed club and the premises is either:
  • a major sporting venue
  • the headquarters in SA for a particular sporting code.

Each gaming machine licence specifies the maximum number of gaming machines approved for a venue. The most any venue can have is 40 machines.

If less than 40 machines have been approved for a venue, the licence holder can apply to Consumer and Business Services (CBS) to increase the maximum number of approved machines:

Gambling 2021 Laws And Regulations Macau ICLG

When a new gaming machine licence is granted, no entitlements will be issued. To operate gaming machines, a licence holder will need to purchase entitlements either through the government’s approved trading system or under a contractual agreement with Club One.

Further information about Club One is available at www.clubone.net.au.

Gaming entitlements

Each gaming machine entitlement gives the licence holder the right to own and operate a single gaming machine at their venue. It is an offence to own or operate a gaming machine without holding an entitlement.

The number of entitlements held by a licence holder can't be more than the maximum number of gaming machines approved for the venue, as stated on the licence.

A licence holder can choose not to own or operate a gaming machine, even if they hold an entitlement.

Buy, sell or move an entitlement

Gaming machine entitlements can only be purchased, sold or moved between gaming venues in one of three ways:

• through the government's approved trading system
• under a contractual agreement with Club One, subject to approval by the Liquor and Gambling Commissioner
• under an arrangement between licensed non-profit associations, subject to approval by the commissioner.

If a gaming machine licence is held by a non-profit association such as a club or community hotel, entitlements can be transferred to another non-profit association under an arrangement approved by the commissioner. This could be to allow the merger or amalgamation of gaming operations for the benefit of both non-profit associations.

Any changes to the number of entitlements held by a licence holder must be approved by the commissioner and will be stated on the gaming machine licence. This will not affect the maximum number of gaming machines that are approved for a venue.

Gaming machine venues and entitlements held in South Australia - CBS

Gaming machines

Monitoring of gaming machines

All gaming machines in South Australian hotels and clubs are monitored in real time to ensure:

• machines and installed software are approved and configured correctly
• machines only operate during approved trading hours
• gaming is not available unless the machines are secure and operating correctly
• the collection of financial and statistical gaming data
• the collection of information to assess a venue's gaming tax.

The monitoring system does not:

• control or influence the outcome of any game
• adjust the odds of winning or prizes paid.

SKYCITY Adelaide operates an independent system, which has been approved by the Commissioner, to monitor gaming machines operating at the Adelaide Casino.

Purchase, sale and disposal of gaming machines

See More Results

The purchase, sale or disposal of a physical gaming machine is the responsibility of the licence holder and must be done through a licensed gaming machine dealer.

Installation and maintenance of gaming machines

The installation, service, repair, disconnection or removal of a gaming machine can only be carried out by a licensed gaming machine service agent or an affiliate. There are currently two service licensees in South Australia:

Amtek Services Pty Ltd
Unit 2/48 Barwell Ave
Kurralta Park
Phone: (08) 8351 1665

See Full List On Legislation.sa.gov.au

Bytecraft Systems Pty Ltd
Unit 4/938 South Rd
Edwardstown SA 5039
Phone: (08) 8275 9700