Everything you need to know about the legal situation of gambling in South Africa. We discuss the most important provisions of the Gambling Act

The Gambling Act, specifically "Act of 19 November 2009 on gambling" this is a basic legal document that regulates the functioning of the betting and gambling market in South Africa . It is also very important for reducing the grey area in the African gambling industry. However, most importantly from a player's perspective, the Gambling Act has a real impact on the way in which land-based and online betting and gambling operators provide services, as well as on the level of player safety and the amount of winnings. The law also provides for penalties for participation in m.in. illegal betting, roulette, poker, slot machines or other gambling .

Gambling law – what is it?

At the beginning, it is worth explaining that the first gambling law in South Africa was created in 1992 and was repeatedly amended, that is, simply corrected. However, since the amendments alone were not sufficient, a new document was adopted in 2009 – the "act of 19 November 2009 on gambling". It has also been the subject of much controversy and controversy m.in. claim of non-compliance with EU law), therefore "On December 15, 2020, an amendment to the Gambling Act was adopted". which has made many very significant changes. After its establishment, from 1 April 2021 in South Africa begin to apply "radically changed gambling laws". 2021 turned out to be a turning point for the entire betting industry in South Africa, especially the online one (but also for online casinos, slot machines, etc.). The introduced changes were aimed at a more effective fight against the organizers of online betting or online casinos, who operated without a permit and did not pay taxes in South Africa. In return, foreign betting operators were allowed to operate, provided that they obtained a standard permit and paid taxes to the budget of the African state. It was also very important to increase the safety of players and implement solutions that were supposed to reduce the risk of gambling addiction or bankruptcy of gambling participants.

On the other hand, the legislator also left many regulations unchanged. So, below we describe the most important issues that are in the unified text of the law and are of great importance for the players themselves.

Gambling Act-bookmakers and permits

According to the Gambling Act, bookmakers can offer their services in South Africa only on condition that The Minister of Finance of the Republic of South Africa im authorisation to conduct such activities. Licenses of this type may be sought. only companies that meet certain requirements, e.g. have a sufficiently high share capital, are able to raise sufficient financial security or are based in South Africa (or establish a representative in our country or create an African branch). Companies interested in organizing mutual bets in our country must also revive a special conclusion and provide comprehensive documentation of the planned activity and the company itself, and the Ministry of Finance of the Republic of South Africa has up to 6 months to consider the application . It is worth knowing that the Minister of finance issues a separate permit for betting on land-based points, and separately for online betting activities and bookmakers can apply for only one of them or both. The Gambling Act also provides the period of validity of the issued permit-it is 6 years however, the license it can be one-time extended .

Prohibited Domain Registry – what is it?

As we already know, only bookmakers who have received permission to organize betting from the Minister of finance, operate legally. However, in the era of the Internet, offering mutual bets online is not difficult, so before the Wes$a Amendment to the Gambling Act came into force, it was bookmakers without permission who owned the overwhelming majority of shares in the African betting market. The main tool used in the fight against the reduction of the gray area in the online betting industry is "Register of domains used to offer gambling in violation of the law" . The new Gambling Act stipulates that this register is kept by the Minister of Finance and that it is open to all . The register is located on the website of the Ministry of Finance and anyone can check whether a particular operator of bets or other gambling services offers them without permission. The register is particularly important for telecommunications companies and payment service providers (including banks, online payment systems, electronic wallets, etc.). The law applies to telecommunications companies. obligation to block access to websites who knew$y in the registry within 48 hours from the moment the domain name appeared on the "banned" list. Payment service providers are required to end cooperation with the owner of the site, which is entered into the Register of blocked domains within 30 days from the date of entry in the register. If, on the other hand, a player has doubts whether a given betting company is legal in South Africa or not, he can also use the register as much as possible.

Gambling law and the age of players

Regardless of whether bookmaker has permission to place mutual bets at fixed points and/or via the Internet or not, betting is only allowed for adults . As the Gambling Act specifies, a person who has not yet completed 18 years of age., you do not even have the right to enter the betting point, as well as to enter the website that offers online betting. Bookmakers are obliged to inform in a visible place about the ban on the game in force minors. As for ground points, in case of doubt about the age of the player, the employee of the premises has the right to request proof of identity to verify this issue.

In turn, the organizers of online betting must introduce procedures through which it will be possible to verify the age of the player, including the procedure for registering a personal player account . Account registration is a prerequisite betting betting sites, so you can not place a single bet online if you do not set up an individual account in a particular betting site. The key element of registering a player account is sending a photocopy of your identity card or passport , on the basis of which bookmakers can confirm the age of the player. Although the Gambling Act also allows the possibility of creating a temporary account, in which case you do not need to attach a scan or a photo of the identity document, but in this case typer m.in. he can't pay out his winnings. All withdrawals from the player's account are possible only if the bookmaker confirms that the player has reached the age of 18.

Rules of responsible gaming

The age requirements of the bettor result from the policy of protecting players from the negative effects of gambling, and therefore above all from the risk of addiction (to which minors are more likely to be exposed). However, the Gambling Act also provides for other ways to protect players. And yes, all companies that seek to obtain a permit to arrange betting, must submit own draft of the rules of responsible gaming which is then checked and, if all is well, approved by the Minister of Finance . The amendment to the Gambling Act also introduced the requirement to make the rules available on the bookmaker's website at the latest on the day of the start of accepting bookmaker bets. What should this type of regulation contain? It must provide information about the bookmaker itself and the rules of the game in force on the website, but also how the bookmaker will comply with legal requirements, i.e. how the account registration process will take place, how the player's age of majority will be verified and what mechanisms for controlling the game will be applied.

Of course, the writing of the rules is one thing, and its implementation is a separate matter, while legal bookmakers are obliged to do both. The implementation of the regulations consists in the implementation of the principles of which the regulations (and the Gambling Act) speak. As for information issues , it is mandatory that the online service (which must have a domain with the ending ".pl") offering bookmakers there was information in a visible place.:

• which entity organizes bets and how to contact it,
• what is the data on the permission to organize betting,
• the fact that minors are not allowed to place bets. By providing a variety of commercial information on their online site, bookmakers must also ensure that minors are protected as much as possible,
• about the risk of addiction to the game and the names of institutions where you can seek help if you notice symptoms of addiction,
• the rules themselves must also be posted on the site and players must be able to read them before they start betting.

In addition to information obligations, legal bookmakers they must also implement the rules described in:

• age verification procedures for players ,
• procedures for registration of individual accounts ,
• mechanisms through which the player can independently control the time and intensity of his playing . The site should contain functionalities, thanks to which each player can define their own game time limits and bet limits in both cases, they should be included in the daily and monthly perspective-after reaching a certain maximum the possibility of further play is temporarily suspended. Players can also at any time suspend this option or completely block your account . Self-monitoring is also supported by clock displayed on the page, which shows how much time the player spent on the site.
• mechanisms by which the system automatically prevents further betting if the funds in the player's account run out .

As you can see, the rules of Responsible Gaming are therefore aimed at preventive action and support the protection of players from uncontrolled play and the allocation of funds to it in an unlimited amount.

Tax issues

Tax on each bet placed

The Gambling Act also regulates taxes related to the establishment of mutual bets (and other gambling). A taxpayer is an entity that organizes betting and pays tax not on profit, but on turnover. The tax base is the sum of the rates paid, and tax is 12% of turnover . However, the Gambling Act does not specify how bookmakers are to meet their tax obligations in practice. Therefore, in order to reduce your costs, betting operators immediately deduct from each stake 12% of its value , reserving them against payment of turnover tax. Thus, the burden of tax is shifted to the players, and bookmakers deal only with formal issues related to the payment of receivables to the Tax Office. Note that this tax is paid by each player at the very beginning of placing a bet and regardless of whether the bet coupon will be won or lost, the amount of tax will go to the Treasury.

Players may be surprised that legal bookmakers sometimes advertise the possibility "games without tax" . However, such a slogan is just a mental abbreviation describing the type of promotion offered by some bookmakers. In any case, the tax is paid, while the promotional action is that it is the organizer of the bookmaker who covers the tax costs, and therefore the entire bet placed by the typer is involved for the game (thanks to this, the potential win is higher).

Tax on winnings

By the way, it should be clarified that another type of tax applies to bookmakers, which is not mentioned in the Gambling Act, but only in the Personal Income Tax Act. As stated in this act, the winnings m.in. from betting bookmakers are subject to tax in the amount of 10% of win . However, winnings with a one-time value not exceeding $2280 are exempt from this obligation. Or 10% of your winnings will only be deducted if they are greater than $2280 . Also in the case of the so-called tax on winnings, bookmakers deal with the payment of a certain amount to the tax office and pay the player the amount less the tax due. It is a consolation to add that although the player bears the costs of both taxes related to betting, at least he does not have to submit any declarations to the authority or pay taxes himself, since these issues are legally dealt with by the organizers of betting.

Illegal betting – punishments for players

The new gambling law provides for penalties for players who place betting bets with bookmakers who do not have a permit issued by the Africane Ministry of Finance. The financial penalty shall be imposed by the head of the competent customs office and shall include: 100% of the player's winnings, and it is not reduced by the amount of bets which were filed by typer. However, this is not all, because an additional fine is provided for by the "tax Penal Code". According to his records, a player who knowingly participates in illegal gambling, subject a financial penalty of up to 120 daily rates . In exceptional situations, the fine can be really large – for example, in 2023, the daily rate is from $ 75 to $ 30,000, therefore the maximum penalty is $3,600,000. ! This is, of course, an extreme case, and the penalties imposed are in principle always much lower. It should also be noted that the penalties for betting with illegal bookies in South Africa were actually $agodzone. The tax code was amended in 2021, and earlier provisions called for a maximum fine of 720 daily rates and an additional prison sentence of up to 3 years. After all, playing with illegal bookmakers in South Africa is very risky and potentially very expensive. It must be remembered that the penalty is both intentional and unconscious violation of the law.

Gambling Act-other formal matters

The Gambling Act also sets out other obligations of bookmakers, including the obligation to issue a personal certificate of winnings to the player the amount of money – if only the typer such a document requires. It must be a hard copy prepared on a special form and cannot be issued later than the day after the day of winning or the day after the withdrawal of the winning funds. Bookmakers must also lead register issued certificates and keep it for 5 years in case of need to submit to the Tax Office. Winnings above $2,280 are also subject to registration. On the other hand, the information on winnings and losses constitute in accordance with the provisions of the Gambling Act "mystery" of the participant of the game and the organizer of betting is obliged to preserve it – he can disclose it only at the request of certain state bodies.

It should be noted that claims what the player may have in relation to the bookmaker or the organizer of other gambling expires after 6 months from the due date. If this deadline has already passed, the bookmaker can meet them, but does not have to, as they become statute of limitations.

Act a online casino, land-based and slot machines

As for online casino , so the opportunity to participate in various types of random games (such as e.g. roulette , card games, slot machines, blackjack etc.), only one company in South Africa has the opportunity to offer them – Totalizator Sportowy (State Treasury company). The amendment to the Gambling Act granted a monopoly on online casino games to the African state, and any other websites that offer such games are illegal and also fall into the " Register of domains used to offer gambling games in violation of the law." At the same time the state also has a monopoly on slot machines located outside the casino in the so-called game rooms.

Land-based casinos they are legal and can organise cylindrical games (e.g. roulette, bingo), card games (e.g. poker, jackpot), craps or slot machines( the so-called one-armed bandit), but only if the organisers have obtained permission from the Minister of Finance concession to conduct such activities. However, the number of casino games in South Africa is limited and depends on the number of inhabitants of a given Village and the entire province. Land-based casinos can also be found on Afrikanch, High Seas ships and passenger ferries.

Gambling law and poker

In turn poker is lawful if the game takes place in casinos or outside of them, both in a situation where the game organizer has a license to operate a casino game, and when he does not have it . In each of these situations, the amended Gambling Act dictates different conditions that must be met for the game to be legal. For example, if a poker tournament is organized by an entity that does not have a license to offer gambling, only prizes in kind can be won, and their value can not be more than 50% of the base amount. This means that, for example, in 2023, the value of in-kind prizes won in a poker tournament cannot exceed $2,405. 71. However, when it comes to casino poker, there is no such requirement.

What about playing poker with friends at home ? Such a game also qualifies as a poker game organized by an entity not licensed to operate a casino and tu you also need to meet all the requirements of the Gambling Act . For example, you need to report the organization of a poker tournament to the director of the Chamber of tax administration or submit the rules of the tournament for approval to the Minister of Finance. So it must be admitted that the requirements are rather prohibitive and in the case of home poker best to stay with the Match Game - with regard to this form of entertainment, the Gambling Act does not impose any restrictions.

Gambling Act-summary

The Gambling Act, as it is a law, is a long document, not the easiest to receive, and the average gambler hardly needs to look into it. We have described the most important issues above, but if the reader would like to verify certain provisions, under the article we include a link to the government website where the Gambling Act is located. 2021 turned out to be the beginning of the implementation of significant, real changes in the African betting and gambling market – especially in the online segment, and players should have at least general knowledge about this.

In a nutshell, it can be said that when it comes to the entire unified gambling law, for gamblers the most important thing seems to be:

• no play before the age of 18. and the resulting need to register a personal account player on online betting sites,
• the possibility of legal, not threatened with financial penalties only at licensed bookmakers ,
• obligation to pay taxes from wagered bets (excluding special promotions) and tax on winnings over $2280,
• threat of penalties for participation in illegal gambling,
• African state monopoly on online casinos , and slot machines outside of land-based casinos (therefore, if on the website of any company other than Totalizator Sportowy is available, for example, the option to play poker, it is a clear signal that the entity is acting illegally),
• solutions to increase player safety - it is worth using them consciously, e.g. by adjusting the individual limits of the game accordingly.

Gambling law in brief:

Important links:

http://prawo.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=WDU20220000165 -Gambling Act (after entering the site, select the version Consolidated text )

http://hazard.mf.gov.pl / - register of domains used to offer gambling in violation of the law