Despite the fact that the iGaming options are strictly prohibited on the territory of South Africa, it seems like there is an alarming tendency related to the fast development of the unregulated markets.
According to statistics released mere hours ago, gray markets are a serious threat to the well-being of the land-based casinos. That is what the South African Casino Association revealed.
Themba Ngobese, the CEO of Casino Association of South Africa (CASA), said that even if as much as 5% of the entire gambling revenue is allowed to “slip away” into the online gray markets, this would result in losses, equal to R110 million annually.
South African gambling officials keep a close eye on the online gambling affairs in Europe with the aim of incorporating the most effective strategy into the iGaming market of South Africa.
However, they noticed that in those countries where players are allowed to use remote gambling options, the visits at traditional casino venues decreased by 20%.
In addition, Mr. Ngobese expressed his concerns that if South African authorities give the nod to the expansion of the untapped online gabling market, this move could result in higher unemployment rates and increased taxes.
There is another side of the coin, though. South African residents are getting more and more passionate about using online gambling services and in order to raise the awareness about the possible dangers the illegal online gambling can lead to, the association of Mr. Ngobese started a campaign aiming at making players familiar with these threats.
He said that although online gambling may be regarded as a “harmless fun to gamble online”, the truth is that players are exposed to serious dangers. Basically, the operators they use in order to place their bets do not provide them with any protection.
Despite all convincing reasons for avoiding online gambling, this kind of activities have already affected the revenues of the brick-and-mortar casinos. A revenue drop of 0.6% was reported during the previous year but what made Mr. Ngobese even more worried were the internet cafes since he believes they urge players to participate in illegal gambling activities.
During the previous fiscal year, the gross revenue was amounting R21.8 billion and the tax deductions were estimated to be R2.2 billion.
South African residents who place bets on unregulated gambling markets face serious fines and might spend up to ten years behind the bars.
Determining the losses caused by the illegal iGaming sector is a difficult task but according to the latest information, they are more significant than expected.
Currently, an idea for imposing taxes on professional players is being reviewed and those who make a living by taking part in gambling activities, regardless legal or not, should declare their income and pay the respective taxes.
