Key Provincial Figure Backs One Of Two Duelling South African Gambling Reforms

South Africa, and by extension the province of KwaZulu-Natal (KZN), is not generating tax revenue from online gambling due to a lack of legislation, according to KZN’s Provincial Treasury, as it backs a push for new legislation.

KZN's Executive Council (MEC) member for finance, Francois Rodgers, who made the comments, is a member of the Democratic Alliance (DA), which introduced the Remote Gambling Bill to South Africa’s National Assembly (parliament) in April 2024.

Support from the KZN lawmaker for the Remote Gambling Bill indicates that both provincial and national lawmakers are still keen to introduce a new online gambling framework.

Additionally, Rodgers' support for the DA's bill reflects that despite being in a power-sharing relationship with the African National Congress (ANC), the DA or at least some of its lawmakers are backing their gambling draft, instead of the ANC's alternative gambling bill.

Rodgers has warned that the KZN government risks overspending and could face a ZAR9bn (€467m) budget deficit, which revenue generated from online gambling could help address.

He told Vixio GamblingCompliance: “Should the Remote Gambling Bill pass and be effected into operation, South Africa, and by extension KZN, may gain much-needed clarity and certainty on the country’s online gambling market.

“We may also see the growth of a well-regulated online gambling market with clear licensing, taxation, and consumer protection mechanisms.”

Rodgers and other DA party members will continue to advocate for the adoption of the Remote Gambling Bill, “for the ultimate benefit of the people of KwaZulu-Natal and the rest of the country”.

The DA's bill would introduce a new licensing system, regulations for operators and measures to help prevent gambling-related harm.

“Essentially, the bill seeks to regulate all forms of online gambling in the country and envisages regulated tax revenue,” a spokesperson for KZN’s Provincial Treasury said.

Under the proposal, issuing the three different licence types would be the responsibility of provincial authorities, not the National Gambling Board.

Rival Regulations

A separate National Gambling Amendment Bill (B27B), introduced by the ANC’s trade minister in 2018, was referred to a mediation committee on April 12, 2024, according to a parliamentary legislation update. The bill was officially revived in the National Assembly on July 25, 2024.

This bill provides for a raft of amendments to the National Gambling Act 2004, including the dissolution of the National Gambling Board and the establishment of the National Gambling Regulator, as well as providing new powers to prevent payments to unlicensed operators, and for the forfeiture of unlawful winnings to the National Gambling Regulator.

The South African National Gambling Board (NGB) has previously told parliament there is a need to reform gambling laws, in particular around online gambling, as despite it being “illegal” it is “still rife”.

Following general elections in May 2024, where members of the National Assembly as well as the provincial legislature in each of the nine provinces were elected, the DA has greatly strengthened its political position in the country.

The ANC lost its majority for the first time since the first post-apartheid election in 1994, but still has 159 of the 400 seats in the National Assembly, the most of any party.

On June 14, 2024, the ANC, the DA, the Inkatha Freedom Party (IFP) and the Patriotic Alliance (PA) agreed to form a national unity government.

Online gambling in South Africa is prohibited, but online betting licences are available and are issued by the nine different provincial lottery authorities (PLAs). Live dealer casino games are also permitted in the Western Cape and Mpumalanga via an interpretation of betting regulations.