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ONLINE GAMBLING IN LIMBO IN SOUTH AFRICA

4/26/10 - Despite approving in principle the idea of online gambling legalisation and regulation, the South African government continues to dither on actual implementation, leaving the pastime technically illegal.
 
That hasn't stopped online gambling companies from openly advertising their offerings in the country, but it has presented the Reserve Bank with a problem on international transactions that might involve 'illegal' internet gambling.
 
The Times Live reports that there is no simple way to tell the difference between legal and illegal financial transactions....but there is nothing the Reserve Bank can do to stop them.
 
The Bank is apparently looking at ways in which to block transactions with offshore gambling sites, The Times reports, revealing that the Bank has issued a circular proposing to use the national payments system to flag and block transactions with offshore gambling websites.
 
While the banks have not yet formally responded to the circular, there are already grumblings about the implications, the article notes, underlining the many conceptual problems.
 
"The first one is how you know whether the merchant that initiates a transaction is an online gambling site," The Times opines. "The credit card companies have a basic classification system for merchants, like "accommodation" or "meals", when a transaction is processed.
 
"But there is nothing very scientific about those classifications. If you have a meal in a hotel, you might just be charged for "accommodation". Same if you pop into the hotel's casino.
 
"The second problem is whether or not the credit card holder is in South Africa. A transaction that is illegal for you to do from South Africa is perfectly legal for you to do when visiting Monte Carlo. The systems that process all such transactions have no easy way of telling the difference."
 
Like several other governments, the South African authorities have passed the buck to the banks, asking them to come up with a way of telling the difference. But that could mean the time, resources and expense of constructing new software to monitor and assess all transactions going through the banks' systems.
 
The report also points out that it will require the active collaboration of the credit card companies to determine just who the merchants are that initiate transactions.
 
According to the report, the banks - as in other countries - are less than enthusiastic about the idea, arguing that the costs simply are not worth it.
 
The Times also notes that there is some legal dispute over whether the gambling itself is in violation of South African gambling legislation, quoting the long-running litigation between the authorities and Piggs Peak Casino in neighbouring Swaziland, where the online casino argues that its online site does not amount to gambling in South Africa and is therefore not subject to South African gambling legislation.
 
"That's quite tricky philosophical territory," The Times reports. "Whether using an [online] casino's website amounts to gambling in your home or gambling on the website's servers based in another jurisdiction or country.”
 
At the end of the day, when it comes to dollar-based online gambling, the Reserve Bank wants to call a halt, says The Times, going on to ask if the costs of picking up on illegal transactions are worth it, especially when it would not be too hard for the merchant to get around the prohibition by reclassifying himself.
 
Meanwhile, online gambling continues to occupy a South African limbo-land, where the government appears despite several years of research, debate, hearings and legislation to be procrastinating, leaving the pastime technically illegal, if accepted in principle.

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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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