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Do you know your odds? Don’t bet on it

Online betting is legal in SA, but online gambling is illegal, a distinction that causes confusion exploited by online gambling sites dangling the hope of mega jackpots.
Nitesh Matai
By Nitesh Matai, General manager, SunBet, the online betting arm of Sun International.
Johannesburg, 09 Apr 2021

Sometimes isolation is too much, and we seek out ways to spend time with a fellow human being without necessarily coming into contact with them.

Of course, online is the way to go in these instances because you can do pretty much everything in the virtual world that you can do in the physical realm, with some obvious exceptions that we won’t go into here.

From multiplayer games to interactive movies, the digital realm has a lot to offer us. It seems like everywhere you look when browsing online nowadays there’s an advert offering some sort of opportunity to double or triple your money, or score a jackpot.

However, as with everything, danger can lurk just below the surface and some Web sites may contain malware that could take over your computer, holding it to ransom. Or you could be accessing a phishing site that will grab your bank login details and leave the account empty.

While these issues are well-known among high power PC users, many may not be aware that online gambling – versus online betting – is still illegal, although the then Department of Trade and Industry did look into legalising it some time ago.

Let’s take a stroll down memory lane to the Piggs Peak case.

A matter of venue

In 2011, the Bloemfontein Supreme Court of Appeals ruled against Piggs Peak owner, Swaziland-based Casino Enterprises, in its bid to have its operations declared legal in South Africa. The ruling, at the time a landmark, settled once and for all the question of where online gambling takes place.

Piggs Peak had argued, perhaps rather inventively, that the act of gambling took place where its servers were located, and not where the punter was seated. So, for example, if someone in Johannesburg was placing bets, these were actually placed in Swaziland, meaning that online gambling fell outside the ambit of South Africa’s laws.

Until such time as the law is amended, online gambling is illegal if you are seated in South Africa.

The ruling, written by Judge Jonathan Heher, confirmed a 2010 judgement that found interactive – or online – gambling takes place where the player is, and not where the casino's servers are located.

Online gambling was set to be made legal by an amendment to the National Gambling Act. However, the Bill stalled in August 2009 when the Parliamentary Portfolio Committee on Trade and Industry decided the gambling sector in South Africa should be reviewed.

This led to the Gambling Review Commission being set up to review the entire sector: casinos, online gambling and horse racing. In the middle of 2011, the Gambling Review Commission recommended that online wagering be made legal, and more than 10 licences issued. So far, that hasn’t happened.

That, then, solves that. In theory. Until such time as the law is amended, online gambling is illegal if you are seated in South Africa.

In reality, it is still quite easy to place a bet on a Web site. A simple Google search for “online gambling” will yield a plethora of online gambling sites. Many of these will have a dot-com extension, indicating they are based outside of South Africa.

However, some have a .co.za domain, which may lead people to believe they are gambling on a legitimate site when they are not. Therein lurks the danger.

Because none of these sites are legal, consumers have no recourse if anything goes wrong. They cannot complain to the National Gambling Board. Any money lost will have to be written off because local banks will not have any jurisdiction over international sites, not when your money has already left your account, and fly-by-night operators will be exceptionally difficult – if not impossible – to track down.

And you can say goodbye to any winnings you think you have.

A bet worth taking

However, if you feel like a punt on the ponies, there is good news, as you can do this legally and from the comfort of your own home. That’s because online betting is legal in South Africa.

In terms of the law, only one of the provincial gambling bodies needs to award a licence to a betting company and they can operate within South Africa. In SunBet’s case, this is the Western Cape Gambling Board.

This means that bettors can put money on whether Chiefs will beat Swallows, or the Blue Bulls come out on top of the table. Some of the sports we’ve seen become popular during lockdown, for example, are table tennis.

Of course, people like to bet on the outcome of the usual sports depending on the season: football, tennis, cricket, basketball, rugby, and the likes.

What you cannot legally do, however, is try to win an online jackpot. Stick with the ponies, or cricket and football. It’s legal and, when you place a winning bet with a reputable company, you are guaranteed to get your payout.



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