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South African Mobile Gambling

3/1/10 - The publication ITWeb reports that mobile gambling has significant potential in South Africa despite the still evolving legal regime applying to online gambling.
 
Cellphones are widely used and mobile technology is well advanced in the country, where it is estimated that there are up to 500 000 online gamblers.
 
Peter Collins, executive director of the National Responsible Gambling Programme in SA, says the industry is thought to be worth at least R800 million (around GBP 70 million) a year. And he says the sector will grow as an increasing number of cellphones support gambling applications.
 
The government has been wrestling with online gambling regulation and licensing for years (see previous InfoPowa reports) despite extensive research initiatives, political debates and visits to successful overseas licensing jurisdictions. This has resulted in blurred legality lines until definitive laws are passed, hopefully later this year.
 
In the meantime, and because the legality question is so open to interpretation, foreign companies justify offering their services on the grounds that their servers are not in South Africa and therefore not subject to its laws or advertising restrictions.
 
A case testing this argument has been ongoing since 2006 and is currently on appeal before the Supreme Court, but the liklihood appears to be that the issue will be resolved by legislators before the judiciary makes a finding.
 
Until then the government's official position is that online gambling is illegal, although it is not vigorously policed. “It is not something that anyone is going to waste police time on,” Collins told ITWeb.
 
Arthur Goldstuck, md of World Wide Worx, anticipates five million more people will come online in the next five years in South Africa, and two million of these will use the Internet through cellphones. Research by his company has shown there are currently five million Internet users in SA.

Goldstuck told ITWeb that new users will initially be inexperienced, and not the target market of online casinos. However, “the following five years is when it gets scary” and there will be a need for "checks and balances" to be in place to regulate the sector.
 
Putting these measures in place is one of the issues facing the Department of Trade and Industry. Nomfundo Maseti, chief director of policy and legislation at the department, is aware that there is a need for precautions against underage and problem gambling, the involvement of organised crime and money laundering, and arrangements are in hand to address all of these problem areas.
 
If the national government  decides to license and regulate online gaming in the country, as is expected, the National Gambling Board will only issue 10 licences. Gambling operators will be required to prove they have a physical presence in SA and their financial transactions will have to be located within South African borders.
 
Victor Chandler and Ladbrokes have both announced an interest in establishing a presence in the market.
 
ITWeb reports that according to National Gambling Board numbers, about 7 percent of all gambling revenue globally is spent on the Internet. In South Africa, the overall gaming industry is worth about R16 billion (about GBP 1,43 billion) in revenue.

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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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