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Are penny auctions gambling

Posted 2/15/11 : South African authorities confirm illegality…until Gambling Amendment Act passes
 
The excruciatingly slow journey of South Africa towards legalised and regulated online gambling continued this week with a confirmation from the government’s Department of Trade and Industry that the law in its current draft form would effectively bring internet auctions under proposed gambling regulations.
 
According to the online publication MyADSL, South African legal experts have already opined that
online penny-auction sites could run afoul of consumer protection regulations and South Africa's draft gambling laws. The country has a number of such operations.
 
“Penny auction sites make their money not on the price a 'winner' pays for an item advertised; they make the vast majority of their cash from the fact that every bid placed costs the individual placing it a far larger sum of money than just the single penny added to the final price of the item,” the DTI explained, adding that a regulation ruling that non-refundable fees may not be charged to participate in an auction means that penny-auctions actually operate in contravention of the proposed regulations.
 
“Having considered the way these auctions are conducted it is now clear that this is similar to gambling and can be regulated under gambling regulations,” the DTI told MyBroadband.
 
In a contentious ruling that is being appealed, online gambling was ruled illegal by the Northern Gauteng High Court last year.
 
Following the ruling, the National Gambling Board said: “…unlicensed interactive gambling activities significantly undermine national policy, legislation and threaten licensed gambling operations by creating an unregulated and untaxed competition.”
 
The Board used the court ruling to threaten action against online gambling operators taking bets from South Africans (see previous InfoPowa reports), scaring away at least one locally-based operator.
 
Complicating the issue still further, the NGB has asserted that there is a difference between ‘interactive gambling’ and ‘online betting.’ While it has been established that ‘online betting’ is still legal in South Africa, penny auction sites would fall under ‘interactive betting’ which at present is apparently not.
 
The Department of Trade and Industry’s last word on the subject – for now at least - is equally confusing: “….any form of online/interactive gambling is illegal in South Africa until the National Gambling Amendment Act of 2008 comes into effect,” the DTI claims.
 
That Act is still making its tortuous and protracted passage through the political system.

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Gambling News :

Tain Fast Bet - Our readers will recall Tain recently increased the number of live events it covers each month to 23,000, covering both traditional markets such as football, tennis and US sports and the more obscure curling, biathlon and Water Polo.

Olympic Entertainment Group Mobile Gaming - In its full-year 2016 report, Olympic Entertainment Group (OEG) has informed the establishment of a Malta-based company registered to facilitate its intended expansion into remote gambling.

Circus Evolution HD Slot - Malta-based content provider World Match has released its first title of 2017, “Circus Evolution HD”, a 5-reel, 3-row, circus-themed adventure offering Free Spins, Wilds and a Bonus Game.

Kindred Group Gets EU Recommendation on Consumer Protection - Kindred Group (formerly Unibet) has become the first operator to successfully meet the requirements of the EU Recommendation on Consumer Protection and Responsible Gambling following an external audit.

17 Crown people still detained - Reports from China over the weekend suggest that the 17 Crown people still detained could be looking at another twelve months of imprisonment as investigations into their alleged and still unspecified crimes drag on

SB1400 Virginia Poker Skill Game Bill - Her bill SB1400 is currently with the Senate General Laws and Technology Committee, whose 15 members will decide whether to progress it or condemn the Senator to another year of failure.

Pennsylvania Video Gaming Association - With the focus on Pennsylvania as the most likely next US state to legalize online gambling as part of a general gambling expansion measure, reporters noted this week the emergence of a new lobbying group in the state - the Pennsylvania Video Gaming Association.

Stiffer Problem Gambling Penalties in UK - The Guardian newspaper reports that the UK Gambling Commission plans to unveil new enforcement strategies on problem gambling and money laundering prevention this month, laying down tougher penalties for operators who fail to tackle these issues.

Malaysian police Destroy over 5000 Gambling Computers - Malaysian police in Kajang have destroyed 5,042 computer sets seized in online gambling raids over the past two years, explaining that the action is designed to take the machines out of circulation.

Spartan Poker vs SpartanPoker name War - Pokerguru, which owns the brand SpartanPoker.com, has threatened to sue the Indian Poker Championship over its use of the title Spartan Poker, and recently published a notification that it is not associated with the IPC version of the brand.

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