Internet Cafe Gambling In South Africa

Internet Cafe Gambling In South Africa Right Now
Internet Cafe Gambling In South Africa Nigeria
Internet Cafe Gambling In South Africa News24

Internet franchises are a fast-growing franchising sector, as entrepreneurs clamor to become part of the booming internet industry. With the widespread availability of internet access, there is a need for more online businesses, web portals, gaming sites and internet service businesses to meet the needs of consumers everywhere. Nearly one-tenth of South African households had access to the internet at home. Access to the internet at home was highest among households in Western Cape (23.6%) and Gauteng (14.8%), and lowest. The National Gambling Act of 2004 prohibits online gambling and in August 2010, online gambling via offshore servers was also banned in South Africa. In September 2011, the South African government made it clear that operators were banned from offering online gambling services to South African residents. In fact, online gambling is becoming a pastime favorite in South Africa, with the sixth edition of the gambling outlook 2017-2021 showing a 3.9% increase in total gross gambling revenue. That is, R27 billion in 2016 alone from casinos, limited payout machines, bingo and betting.

Online gambling is booming but not harmless, says Casino Association South Africa CEO Themba Ngobese.

You may not know it, but online gambling is illegal in South Africa. Nevertheless, it’s a booming industry that is hitting licensed casinos hard.

The National Gambling Act of 2004 bans all “interactive” online casinos and games such as poker and bingo.

Numerous online gambling sites exist and some estimates suggest that tens of thousands of South Africans have active accounts.

The most popular online gaming platform in South Africa is Costa Rica-based “Realtime Gaming”.

Online gambling represents a massive loss in tax revenue and has the potential to slash visits to “land based” casinos. Online gambling in Europe, where it’s legal, has caused casino visits to fall by 20 percent.

Casino and horse-racing revenue fell by 0.6 percent in 2014. According to the National Gambling Board, gambling revenue totalled R21.8 billion while the industry paid R2.2 billion in tax.

Gamblers and operators face a maximum penalty of R10 million and/or 10 years in jail.

We interviewed Themba Ngobese, CEO of Casino Association South Africa, about illegal online gambling in South Africa.

Listen to the audio (scroll down) for more detail.

We assume that at least five percent of gambling spend goes towards illegal online gambling.

Themba Ngobese, CEO of the Casino Association South Africa

Online gambling in all forms, as well as foreign lotteries, are illegal in South Africa. Only online sports betting is allowed. Government is not considering the legalisation of online gambling.

Themba Ngobese, CEO of the Casino Association South Africa

The loss in tax revenue due to online gambling equals an amount that could buy a third of all school textbooks in South Africa.

Themba Ngobese, CEO of the Casino Association South Africa

There are countless illegal gambling establishments in South Africa. And the numbers are growing. Gambling illegally at home is a much smaller problem than these physical 'internet cafes'.

Themba Ngobese, CEO of the Casino Association South Africa

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Internet Cafe Gambling In South Africa Right Now

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