This dissertation seeks to provide a regulatory perspective on the future of interactive gambling in South Africa. It examines the difficulties faced by the legislator in relation to the regulation of interactive gambling using comparative methods.
- BACKGROUND
- DEFINITION OF KEY TERMS
- PURPOSE STATEMENT
- IMPORTANCE AND BENEFIT OF THE STUDY
- RESEARCH OBJECTIVES
- RESEARCH METHODOLOGY
- LIMITATIONS OF THE STUDY
- CONCLUSION
The regulation of interactive gaming is discussed in relation to the requirements to make this form of gaming controllable. Finally, this chapter will also evaluate the taxation of interactive gaming and the legislation regarding its taxation.
INTRODUCTION
DEFINITION OF ONLINE CASINOS AND APPLICATION THEREOF
Online casinos are audited and regulated by gambling authorities,90 in South Africa this would be the National Gambling Board. In South Africa, where the Internet is a new technology, it is no doubt that many people have tried to use the net for gambling purposes, more so for online casinos.
DISTINGUISHING BETWEEN ONLINE CASINOS AND LAND-BASED CASINOS
There are a number of reasons that will be listed below for the main differences between online casinos and land-based casinos. Internet Connection: This is very important for online casinos as they need a reliable connection to play games.
DISTINGUISHING BETWEEN ONLINE CASINOS AND OTHER FORMS OF
In land-based gambling, it is much easier to keep gamblers safe because there are cameras everywhere and dealers everywhere in the casino. Online casinos can be dangerous in this regard because the game can consume a person, especially since he is alone and it is quieter.
A TECHNOLOGICAL PERSPECTIVE
Most importantly, the advent of Internet gambling has brought about a proliferation of gambling opportunities that were previously unimaginable.”107 Technology has always played an important role in the development of gambling, now more than ever due to recent developments interactive gambling games. A detailed analysis of technological perspectives is beyond the scope of this dissertation, but the importance of technology in this regard cannot be overemphasized, as the very existence of interactive gambling is a technological development.
CRIMINAL ACTIVITY
This problem can often be seen in cases where interactive gambling is not regulated and therefore makes it more difficult for players or governments to seek recourse. Moreover, players are not the only ones who can cheat, they can also cheat.
HISTORY OF INTERACTIVE GAMBLING IN SOUTH AFRICA
The continuous development and accumulation of influence of the Internet led to gambling taking place online. Even the more reliable states estimate the value of the industry at between $2 billion and $10 billion per year.'122 'In the US.
LEGISLATION REGULATING INTERACTIVE GAMBLING IN SOUTH AFRICA
Due to this requirement, the introduction of the Law on Amendments and Supplements to the Law on Gambling141 allows the implementation of interactive gambling. The nature of interactive gambling required extensive regulations to protect minors and other vulnerable segments of society from the negative effects of gambling and to ensure that gambling providers respect certain conditions of social enterprise investment.”142.
REGULATING INTERACTIVE GAMBLING IN SOUTH AFRICA
In May 2008, the South African Parliament approved new legislation governing interactive gambling in South Africa. The change in national legislation required the amendment of the National Gambling Act165 to include interactive gambling.
INTERACTIVE GAMBLING AROUND THE WORLD
Some Muslim countries prohibit all forms of gambling, including online gambling (eg Pakistan, Saudi Arabia, etc.).‖178. Technological advancement in America has resulted in internet gambling activity being particularly high in the US.
CONCLUSION
And so, whether any given jurisdiction decides to learn to swim, or move to higher and drier ground, the tide of online gambling is not just coming—it is already here.‖210. This will force the South African government to make a decision on its regulation of interactive gambling, whether it wants to repeal the National Gambling Amendment 10 of 2008 or whether it wants to announce it.
INTRODUCTION
LEGISLATIVE MODELS APPLIED TO INTERACTIVE GAMBLING
- Legislative Inactivity
- Regulation of interactive gambling
- System of total prohibition
These models differ according to the reasons why a particular government has chosen to regulate or ban interactive gambling. Furthermore, to ensure that the jurisdiction can benefit from the regulation or prohibition of interactive gambling.
THE NATIONAL GAMBLING AMENDMENT ACT
The act also deals with the possible spread of gambling where these gambling activities are practiced, as well as responsible behavior on the part of the operator, i.e. This Act stipulates that "only providers of interactive gambling services licensed within the meaning of the National Gambling Games". Act278 may legally provide gambling services within South Africa'.
INTERACTIVE GAMBLING REGULATIONS
- Advertising
- Licensing
- Compliance and enforcement
- Minors
- Problem Gambling and Operator Responsibility
- Money-laundering and the Revenue process
In terms of regulation 23,292, the NGB is responsible for the licensing process; they have the duty to ensure that the licenses comply with the purposes of the 2004 Act293 and the authority to impose conditions on the interactive games to be played.294 Having mentioned this, the Minister, in terms of the 2008 Amendment Act295, section 25 (insertion of section 37A) may, by regulations made in section 87, consider the number of interactive gambling licenses that may be provided in South Africa. The 2008 Amendment Act310 places an obligation on the NGB to ensure that the licensed stakeholders of interactive gambling comply with all the provisions of the Act.
CASE LAW: CASINO ENTERPRISES
The main issue considered by the court was "whether and to what extent what occurs when a player in Gauteng interacts via the internet with the plaintiff's servers in Swaziland constitutes gambling for the purposes of the Provincial Act and the National Act ". 372 A further question arose within the investigation, whether to the extent that such gambling does take place, it takes place in both South Africa and Swaziland or only in Swaziland.373. If the potential gambler is from a state where land-based gambling was legal, the gambler will be allowed to play and the results of the game will be reflected in the user's Antigua account.407 GCC has the availability of this gambling service on its website promote. over the Internet and in a national gambling magazine.408.
TAXATION OF INTERACTIVE GAMBLING AND LEGISLATION THEREOF
461 Hendrik J M Van Deventer A Critical Analysis of the Taxation of Interactive income earned by Resident South African Individuals (unpublished LLM dissertation, University of Pretoria, 2010) 21. 463 Hendrik J M Van Deventer A Critical Analysis of the Taxation of Interactive income earned by Resident South African Individual (unpublished LLM dissertation, University of Pretoria, 2010) 21.
REASONS FOR THE DEFERMENT OF THE NATIONAL GAMBLING AMENDMENT
The criteria on which interactive gambling will be regulated cannot be the same as those used for land-based gambling. The taxation of interactive gambling is quite complex and therefore the GRC found that it would best be debated and discussed by the competent authorities.
CONCLUSION
Moreover, the coexistence of the interactive gambling industry and the physical gambling industry is a crucial factor and therefore it would be compelling to find a middle ground for their existence. Finally, the legalization of interactive gambling will have some impact on the way land-based operations operate. This raises the question of whether this will be evaluated and dealt with.
INTRODUCTION
BACKGROUND
485 S Pinto & P Wilson ‗Gambling in Australia Australian Institute of Criminology trends & issues in crime and Criminal Justice 1, 1. Australia can be recognized as the haven of gambling, it has been a general leader in the development of the industry.490 It has also the most advanced technology and has a longer history of legal gambling than most other countries.491 In the last 10 to 15 years, there has been a rapid transformation which has led to the legalization (or liberalization) of new forms of gambling and extensive technological development.492 The whole concept of Internet gambling originated around 1995, when the very first online casinos began to appear online.493 Australia is one of the first countries to legalize Internet gambling in one of its states.494.
REGULATION OF ALL FORMS OF GAMBLING IN AUSTRALIA
The Commonwealth took an active role in this area.501 Gambling in Australia was unraveling public debates at every level, it became a national concern and the Commonwealth launched an inquiry by the Productivity Commission to examine the position of gambling and examine the future prospects.502. The implementation of new technologies in forms of gambling has led the Commonwealth to take an interest in the industry, as this is one of its constitutional responsibilities.503 For the reasons that "the prohibition or regulation of internet gambling is confronted by the same challenges of jurisdiction and legislation". enforcement than Internet activities in general', efforts to address risks associated with Internet gambling have clearly faced different challenges in terms of policy and legislative measures aimed at limiting problem gambling in a traditional sense.‖504 In August of 1998 the Commonwealth commissioned the Productivity Commission to report on the performance of the gaming industry as well as the social and economic impact it has across Australia.505 Due to the importance of the regulatory mechanisms, the collection of revenue and the welfare of the online gambling community, the federal parliament placed a ban on the provision of internet gambling to Australian residents.506 The Prime Minister of Australia at the time expressed concern about the rapidly growing internet gambling in a press release released on 16th December 1999 , he considered the possibility of an investigation into the feasibility of banning internet gambling.507 In May of the year 2000, Ministers met and announced the investigation of legislation that would introduce a 1-year moratorium on the introduction of new interactive gambling.
A NEW ERA OF INTERACTIVE GAMING IN AUSTRALIA
Federal and state governments, as well as the opposition and community groups, have expressed a number of legitimate concerns about the legalization of online gambling.534 According to Jolly535 ―the main risks associated with interactive gambling are similar to those relate to gambling in the traditional sense. ‖536 Basically, gambling involves a number of important social risks such as the experiences of non-gamers. 527 Cynthia Orme et al 'Internet gambling - A discussion paper on Internet and other forms of remote gambling' International Bulletin of the Public Health and Gambling Alliance (July 2010) at 4.
REGULATED INTERACTIVE GAMBLING AFTER THE 2001 ACT
- Problem Gambling
- Responsible Gambling
The regulated interactive gambling industry has not been smooth, in fact interactive gambling gives rise to problems such as problem gambling and the way the regulating country deals with the issue of responsible gambling for players. Responsible gambling refers to "a broad concept which supports a range of strategies whose aim is to reduce the occurrence of problem gambling and minimize potential social costs and harms associated with problem gambling."561 Like problem gambling, responsible gambling has no single games. agreed definition.562.
THE FIRST DECADE OF THE NATIONAL GAMBLING ACT OF 2001 IN AUSTRALIA 92
607 Australian Government Department of Broadband, Communications and the Digital Economy, Interim Report, Review of the Interactive Gambling Act. 609 Australian Government Department of Broadband, Communications and the Digital Economy, Interim Report, Review of the Interactive Gambling Act.
TECHNOLOGICAL PERSPECTIVES
CRIMINAL ACTIVITY
CONCLUSION
However, after much scrutiny of the Australian system, it is clear that Australia is still on top when it comes to interactive gambling. Australia is now fixing the problems they are aware of, issues they have had at least a decade of experience with, so the Australian government should only fix where there are loopholes.
- INTRODUCTION
- REGULATION OF INTERACTIVE GAMBLING IN NEW ZEALAND
- LEGISLATION REGULATING THE NEW ZEALAND GAMBLING INDUSTRY
- THE INSERTION OF REMOTE INTERACTIVE GAMBLING INTO THE GAMBLING
- TECHNOLOGICAL DEVELOPMENTS
- PROBLEMS WITH INTERACTIVE GAMBLING
- CONCLUSION
Sales promotions in the form of a lottery and conducted in New Zealand are exempt from the ban on interactive remote gambling. The New Zealand Lotteries Commission and the New Zealand Racing Board may conduct approved forms of remote interactive gambling.‖665.
INTRODUCTION
POLICY IMPLICATIONS
11. If the answer is yes, the policy option can be applied (at this point it is important to ensure that the option is clear, consistent, comprehensive and accessible to users, for example, the granting of licenses should be based on pre-agreed criteria and open to review); . Also, whether any evaluation of policies will be independent of the policy maker or regulator).
RECOMMENDATIONS
However, offshore owners and operators of interactive gambling sites are outside the enforcement jurisdiction of the United States. After looking at the different approaches that can be used to regulate interactive gambling, regulating interactive gambling in South Africa is more attractive in the sense that the government can exert control over the way the industry operates.
- INTRODUCTION
- RESEARCH OBJECTIVES
- SUGGESTIONS FOR FURTHER RESEARCH
- CONCLUSION
Australian Online Gambling, Summary: Interactive Gambling Act 2001 available at http://www.gambling-law-us.com/Articles-Notes/online-gambling-. The Department of Home Affairs ‗Interactive remote gambling prohibited' available at http://www.dia.govt.nz/Services-Casino-and-Non-Casino-Gaming-Prohibited-.
