The National Gambling Board (NGB) has issued a warning to South Africans participating in online interactive gambling as this remains prohibited.
The warning comes as the board has observed a surge in illegal facilities which offer interactive online gambling disguised as internet lounges and individuals accessing these through their smart devices.
In SA, there are four modes of gambling which are allowed. These are casinos, bingo halls, bookmaking where people bet on sport and limited slot machines.
All these require the facility providing the gambling to obtain a license from a provincial authority.
According to the NGB, other countries allow online interactive gambling but SA has prohibited it as it is difficult to police.
“The casino is supposed to be a brick and mortar establishment. If you want to access the casino that is the only way you are supposed to access a casino.There are controls to control consumers coming such the age or someone with a gambling problem,” said NGB spokesperson Bryan Arumugam.
To bet in online platforms, people can use their credit cards to load money and then gamble on their devices, even while at work in the office.
Gambling on these sites is offered for 24 hours a day and there is no scrutiny on who can play these games or what is punted as an internet lounge.
“Those places are not licensed gambling venues…Inside there are rows of computer screens and nothing else. You sit at your terminal, open it and you are in a casino. Your money is loaded and you can gamble. There is no protection for the public. They can tell you they don’t have the money to pay you or you didn’t win. There is no recourse because they are not licensed,” Arumugam said.
Arumugam said when owners of these facilities suspect that police are on their tails, they simply move them to another neighbourhood.
“They seem to be targeting lower-income generators, people who would find it psychologically appealing to see an alternative source of revenue. These people can be unemployed and see it as a chance similar to that of the lottery."
Last year, the licensed gambling industry generated R31bn and provided 35,000 direct jobs.
“These licensed operators are at risk because of the illegal operators. Government is losing revenue because money that goes to be played on these illegal platforms goes out of the country,” he said.
Arumugam said when police raid these facilities, someone switches off the system from a remote server leaving just computer screens with no evidence which can be used to prosecute.
“We’ve started educating police on how to deal with these. When you want to do a raid, it has to be done over time. A lot of surveillance must be done and preparations.”
In terms of the National Gambling Act 7 of 2004, interactive online gambling is prohibited. In 2008, an Act was tabled before parliament to allow interactive gambling. It was approved by cabinet but was not signed into law as the country did not have resources to police it.
In 2016, the DA also brought a Private Members bill to legalise it but it was also rejected on the same bases that it would be harmful to the public.
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