The South African Trade and Industry Department revealed that it has confiscated around R1.25 million (approximately $100,000) in illegal online gambling winnings.
Gambling services in the country must be provided in full compliance with the National Gambling Act of 2004. Under the law, online gambling is illegal in South Africa and winnings obtained through iGaming must be forfeited to the state. The gambling industry in the country is regulated and monitored by the National Gambling Board, which means that the regulatory body is also responsible to guard against any criminal activities, sanction such activities in a proper manner, and report them to other competent bodies.
As announced by the Trade and Industry Department, the High Court of South Africa has ruled that several individuals forfeit their online gambling winnings of around R1.25 million, as these had been obtained unlawfully. The Department further pointed out in a Saturday statement that the case was unprecedented for the country.
South African officials have repeatedly voiced concerns that online gambling may be used to mask money laundering and other illicit transactions. To prevent this from happening, the National Gambling Board has been working closely with local banks, with the latter helping the regulator and law enforcement confiscate illegal online gambling winnings.
The Trade and Industry Department noted in its Saturday statement that people who gamble online would not only have their winnings confiscated, but would also face prosecution. People who provide illegal gambling services, including iGaming, are also liable to prosecution.
It has become a common practice for so-called Internet cafes, or at least some of the facilities in question, to attract customers by offering them the opportunity to gamble online. Such operations are liable to criminal charges and to penalties of up to R10 million.
Commenting on the High Court’s ruling, National Gambling Board Accounting Officer Caroline Kongwa told media that they are encouraged by the fact that the South African judicial system is considering the matter and is clearly taking it seriously. Ms. Kongwa also appealed for South African citizens to avoid any illegal gambling services and to report the conduction of such services as well as any attempts for their advertising.
Bingo halls, law-stakes machine parlors, brick-and-mortar casinos, and racing and betting are the only legal gambling options under the South African Gambling Act. In terms of Internet gambling, South Africans are only allowed to place sports bets on desktop or mobile.
Although more and more countries in Africa as well as the rest of the world have been taking measures to legalizing online gambling, South Africa has, in fact, tightened its policies against the provision of this type of services with the introduction of the National Gambling Policy 2016.
