A draft version of South African internet gaming bill was published today – the Remote Gambling Bill of 2014.

While it is believed there will be no swift legalization of internet gaming in South Africa, the introduction of the draft bill is a step forward.  The bill is now available to the public for review and comment for 30 days.

Some of the highlights of the draft legislation include:

  • Internet gaming providers would require a “remote gambling license” in order to offer internet gaming.  Remote gambling licenses applications would be submitted to the provincial licensing authorities and issued by the National Gambling Board.  
  • Remote gambling operators will be required to keep “some part of the remote gambling equipment” within the province where the application was made.
  • Remote gambling would be permitted on, but is not limited to, (i) virtual gambling games; (ii) person-to-person gambling; (iii) equal chance gambling; and (iv) casino games, bingo and sports betting. 
  • Players outside of South Africa would be permitted to play on a licensed South African remote gambling operator’s site once registered as a player.
  • Each province will be responsible for imposing the tax rate on remote gambling operators however, of the tax revenue the distribution will be 70% to the provincial revenue fund and 30% to the national revenue fund.
  • Remote gambling operators will not be permitted to extend credit to players for the purpose of engaging in remote gambling.