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| South Africa in race to regulate online gaming |
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4/8/2001 National Gambling Board plans to institute Internet gambling laws the end of the year
South Africa aims to institute laws governing Internet gambling by the end of the year, says National Gambling Board CEO Sfiso Buthelezi. Buthelezi said the process was well under way to laying the foundation for an organized industry that studies suggest could bring in vast amounts of revenue, as well as new jobs and foreign investment, all of which are in grave shortage in South Africa.
?We have been working on this legislation for over a year already and we anticipate that the regulations will be in place by the end of the year. The train is already well in motion,? said Buthelezi.
The name of the successful consultants who submitted tenders to draw up the structure of the regulatory framework and technical requirements will be made public soon.
He also indicated that online gambling laws would be in a separate domain from the Department of Communications e-commerce legislation. "We are guided by the broader approach towards e- commerce taken by the Department of Communications, but we won't wait on them to finalize the online gambling legislation," Buthelezi explained, although they had been discussing the legal aspects with the Department of Communications for more than a year.
The Internet Gambling legislation includes a number of important features including strict age limitations, strict registration processes for users and exclusion clauses intended to protect consumers against falling into problem gambling.
Provisions for business include a licensing fee and stringent regulation. Although the demanding requirements, both in financial and legal terms, may deter certain online gaming companies, Buthelezi believes that most companies want to be regulated as it gives them the upper hand in drawing in circumspect customers. ?Cyber casinos know that they gain a competitive edge when they are backed by a respected jurisdiction, such as South Africa,? said Buthelezi. ?We need a competitive government tax rate that will entice foreign operators and ensure that local operators view South Africa as a favored destination to set up these lucrative cyber casinos.?
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