Online Gambling Laws in South Africa

The country's history of apartheid played a part in the gambling laws of South Africa, with almost all forms of gambling deemed illegal right up until very recently. Today, while sports betting and land-based casinos are very much a part of the culture in the country, online casino gaming is still excluded, though the law is expected to change. Read on for the full story on South Africa's gambling laws.

Gambling Regulation by Casino Type

Gambling in South Africa was banned across the board until 1994, with a licensing system set up in 1996 under the National Gambling Act. This is only half the story, though, as only a few gambling activities were approved, most of which involved offline betting. The law's amendment was somewhat relaxed and clarified in the 2004 amendment, but offshore and South African online casinos remain illegal.

Overseeing the industry but not quite extending to regulating it, the National Gaming Board was tasked with managing advertising and preventing problem gambling. While there have been plans to open South African gambling legislation to online casinos with the 2008 National Gambling Amendment Act, the new regulations have yet to be enacted. Here, we look at the legal stance of gambling in South Africa by specific gambling activity.

Casino Games

Land-based casinos were illegal in South Africa, with the 1965 Gambling Act solidifying the country's stance. Despite this, many native lands (Bantustans) were home to illegally operated casinos as part of apartheid policy.

Things changed when Nelson Mandela came to power and apartheid ended, with the 1996 National Gambling Act enabling the licensing of regulated casinos to be headed up by each of the country's nine provinces. Limited Payout Machines (LPMs) were legalized in 2003.

The 2004 National Gambling Act addressed online gambling specifically but ruled online casino gaming illegal in South Africa. The 2008 National Gambling Amendment Act seeks to resolve this, and while it has passed, it has yet to be enacted due to pressure from land-based casinos concerned over potential revenue loss. However, they have become again interested in the new regulations enabling them to establish their online presence.

Poker

Regarding offline poker games, South Africans can legally play at any of the 40 or so land-based casinos operating in the country, which vary in size. Regarding online activities, a distinction is made between 'online betting,'' which covers sports and horse racing betting, and 'online gambling,'' which includes everything else, with the latter being illegal. Since online poker comes under that 'everything else' definition, it too is illegal in the country.

However, many South Africans can freely join one of the many popular online casinos based outside the country. Still, they run the risk of stiff punishments from the government in the unlikely event of being caught.

Bingo

Offline bingo games were legalized under the 1996 National Gambling Act, with the game featured at many casino-style bingo clubs, most notably the Galaxy Bingo chain of venues operating in all but 3 of the 9 South African provinces. Again, online activity is an entirely different story, with online bingo gambling falling under the definition of online gambling and, as such, deemed illegal in the country.

Lotteries

The 1996 National Gambling Act also legalized land-based lotteries, and just a year later, in 1997, the law approved South Africa's first National Lottery, launched in 2000 with 800,000 tickets sold on the first day. 

The National Lottery is still running more than 20 years later, with residents able to buy tickets at local shops and some banks. Just over a third of lottery revenue is donated to South African charities.

While you can buy National Lottery tickets online via the official website, this is about the extent of online lottery gameplay in South Africa in legal terms, with all other online lottery games for real money, including betting on lottery outcomes, classed as online gambling and thus illegal.

Social Casinos and Crypto Casinos

Esports and other forms of social gaming don't fall into the gambling category since no money is involved. However, betting on esports does. Luckily for esports betting fans in South Africa, this online activity is classed as online betting, just like online sports betting, and is therefore deemed legal.

South Africa Sports Betting Laws

The only form of sports betting legal in South Africa was on-course horse racing betting until the law changed in 1996, making both offline and online sports betting legal.

Once sports betting was officially legalized, a flurry of activity resulted in around 400 betting shops opening. An additional 300 licensed bookmakers operate within the country, most of which are part of the Association of South African Bookmakers. Despite the number of South Africa-based, licensed online sportsbooks, many South Africans join the numerous offshore online sports betting sites for a wider range of markets to enjoy.

Gambling Age Restriction

The legal age for gambling in South Africa is 18 or over. However, many casinos operate family-friendly, allowing under-18s to enter the premises as long as they do not linger in the gaming areas.

Tax Regulation

In most cases, South Africa's gambling tax regulation is surprisingly lenient, with South Africans enjoying tax-free winnings on almost all legal betting activities. The only exception is horse racing betting, with winners liable for a 6% VAT charge on payouts.

History of Gambling Laws in South Africa

Historically, gambling was illegal in the country for a long time, with the 1965 Gambling Act putting it into writing and making all but on-course horse racing betting illegal. During this time, however, it's estimated that around 2,000 casinos operated under the radar.

After apartheid ended, the law changed dramatically, with the 1996 National Gambling Act legalizing and introducing regulation and licensing for land-based casinos, sports betting shops, lotteries and bingo. Charged with ensuring compliance with gambling advertising rules and prevention of gambling problems, the National Gambling Board was launched the same year.

The 1997 Lotteries Act paved the way for the country's first National Lottery, launched in 2000.

Limited Payout Machines were made legal at land-based establishments in 2003, while the following year's National Gambling Act in 2004 clarified the law and allowed for the licensing and regulation of online sportsbooks. However, it maintained that online casinos were illegal.

The 2008 National Gambling Amendment Act promises to approve other forms of online betting besides sports betting, such as online casino slots, table games and live dealer games; while the amendment was passed, it hasn't yet been enacted due to pressure from land-based casinos.

Renewed interest in a regulated online casino industry in South Africa by land-based casinos, which could potentially profit from their own branded online casino sites, suggests the law could soon change in favour of legalized online casino gaming.

Key Facts

The gambling situation in South Africa is quite clear, with most of the emphasis on the distinction between online betting and online gambling. Regarding offline activities, sports betting, horse racing betting, casinos, lotteries and bingo are all legally permitted.

The only online gambling activity legally permitted in the country is online sports betting, including horse racing and esports betting. South Africans can also buy National Lottery tickets via the official website. All other online gambling activities are illegal in South Africa.