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ZA

Is Gambling Legal in South Africa?

Partially Regulated
Land-based gambling and online sports betting are regulated; online casino gaming remains prohibited. Oversight is shared between national and provincial authorities.
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    Key Information Highlights Legislation Timeline Requirements Sources

    Key Information

    Last Update 2025
    Regulatory Authority National Gambling Board
    License Cost Varies

    Regulation by Activity Type

    Casinos Regulated
    Online Casinos Regulated
    Betting Regulated
    Online Betting Regulated
    Lotteries Regulated
    Poker Regulated

    Highlights

    • Gambling in South Africa is regulated by the National Gambling Act of 2004 and corresponding provincial legislation.
    • The National Gambling Board oversees the sector, but licensing and enforcement are handled by nine provincial boards.
    • Land-based casinos, limited payout machines, bingo, and betting are legal with provincial licenses; online casino gambling is prohibited.
    • Online sports betting and horse race betting are legal and regulated, but online casino games remain illegal pending new legislation.
    • Tax rates vary by province and gambling type; casino taxes typically range from 8% to 15% of gross gaming revenue.
    • Strict anti-money laundering controls apply under the Financial Intelligence Centre Act, requiring full KYC for customers.
    • Consumer protection includes self-exclusion registers, age restrictions (18+), and responsible gambling initiatives led by regulators.
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      Legislation

      Primary Legislation

      The core legal framework governing gambling in South Africa is established through national legislation, supported by provincial laws. The principal statute is the National Gambling Act, 2004 (Act No. 7 of 2004). This Act provides for the regulation and oversight of all gambling activities in South Africa, including casinos, betting, wagering, and limited payout machines. It sets out uniform norms and standards for both national and provincial regulation, defines legal and illegal gambling activities, and establishes the basis for licensing, compliance, and enforcement. The Act expressly prohibits unlicensed gambling activities and unlicensed interactive (online) gambling, except for certain forms of online betting that are specifically permitted under provincial laws. The National Gambling Act is complemented by provincial gambling legislation, which provides additional rules and standards for gambling activities within each province, in line with the framework set by the national law. Additionally, anti-money laundering compliance in the gambling sector is governed by the Financial Intelligence Centre Act, 2001 (FICA), which imposes obligations on gambling operators to prevent financial crimes.

      Regulatory Authority

      Gambling in South Africa is regulated through a dual system of national and provincial oversight bodies:
      • National Gambling Board (NGB): The NGB is the central regulatory authority responsible for monitoring and overseeing the gambling industry across the country. It ensures compliance with the National Gambling Act, sets national norms and standards, and coordinates policy between the national government and provincial regulators.
      • Provincial Gambling and Racing Boards: Each of South Africa’s nine provinces has its own gambling board or authority. These provincial bodies are responsible for the direct regulation, supervision, and enforcement of gambling activities within their jurisdictions, including the issuance of licences and monitoring of compliance with both national and provincial legislation.
      • National Gambling Policy Council: This body facilitates cooperation and policy alignment between the national and provincial governments on gambling matters.
      • Financial Intelligence Centre (FIC): The FIC acts as the supervisory body for anti-money laundering compliance within the gambling sector, ensuring operators adhere to FICA requirements.

      License Types

      Overview of the Gambling Licensing System in South Africa

      South Africa operates a dual-tier gambling licensing system, with regulatory oversight shared between the National Gambling Board (NGB) at the national level and nine provincial gambling boards. The system covers a range of gambling activities, each with specific license types, application procedures, eligibility requirements, and associated costs.

      Types of Gambling Licenses

      • Casino License
        • Permits operation of land-based casinos, including slot machines and table games.
        • Issued by provincial gambling boards, subject to national norms and standards.
      • Limited Payout Machine (LPM) License
        • Allows operation of machines with capped payouts, typically in bars or clubs.
        • Licenses are granted to route operators and site operators.
      • Bingo License
        • Authorizes operation of traditional or electronic bingo (EBTs), either in dedicated halls or casinos.
      • Bookmaker License
        • Permits betting on sports and horse racing, both land-based and online (for sports and horse racing only).
      • Totalisator License
        • Allows pool betting, mainly on horse racing events.
      • Manufacturer, Supplier, or Maintenance Provider License
        • Required for companies supplying, manufacturing, or maintaining gambling equipment and systems.
      • Employment License
        • Mandatory for individuals employed in the gambling industry, covering positions from management to technical staff.

      Application Process

      • Applications must be submitted to the relevant provincial gambling board where the gambling establishment or activity is located.
      • The provincial board evaluates applications based on compliance with both national and provincial requirements, including social and economic impact assessments.
      • Probity checks are conducted on the applicant, shareholders, directors, and key employees to ensure suitability.
      • For certain license types, such as bingo in some provinces, applications are only accepted in response to a formal request for applications by the regulator.
      • Once approved at the provincial level, applications may be subject to review or concurrence from the National Gambling Board.
      • Each license specifies the premises, activities, and equipment covered.

      Duration, Renewal, and Transfer

      • License duration varies by type and province, typically ranging from 1 to 5 years.
      • Renewal applications must be submitted before expiry, with continued compliance and updated probity checks required.
      • Licenses can be suspended or revoked for non-compliance or breaches of conditions.
      • Transfer of a license or change of control requires prior approval from the relevant board and may trigger a new probity review.

      Eligibility and Key Requirements

      • Applicants must be legal entities registered in South Africa and demonstrate financial stability and operational capacity.
      • Shareholders and directors must pass comprehensive background and probity checks.
      • Applicants must submit detailed business plans, including social responsibility commitments (e.g., Black Economic Empowerment, responsible gambling measures).
      • Premises must meet strict security, surveillance, and operational standards.
      • All gambling devices and games must be pre-approved and registered with the provincial board and, where applicable, connected to a Central Electronic Monitoring System.
      • Licensees must comply with anti-money laundering and player protection regulations.

      Licensing Costs and Financial Requirements

      • Application fees and annual license fees vary by province, license type, and scale of operation.
      • Typical costs include:
        • Non-refundable application fees (ranging from tens of thousands to several hundred thousand South African Rand, depending on license type and province).
        • Annual license fees, often based on the number of gaming positions, machines, or turnover.
        • Additional fees for registration of individual gaming machines or devices.
        • Financial guarantees or surety bonds may be required to ensure compliance and payment of any regulatory levies.
      • Exact fee schedules are published by each provincial gambling board and are subject to periodic revision.

      Summary Table: Main License Types and Key Features

      License Type Main Activities Covered Issuing Authority Duration Key Costs
      Casino Slot machines, table games Provincial Board 1–5 years High (application & annual fees, per machine/table fees)
      LPM Limited payout machines Provincial Board Varies Moderate (per machine/site fees)
      Bingo Bingo, electronic bingo Provincial Board Varies Moderate (application & annual fees)
      Bookmaker Sports & horse race betting Provincial Board 1–5 years Moderate (application & annual fees)
      Totalisator Pool betting on racing Provincial Board Varies Moderate
      Manufacturer/Supplier Gaming equipment supply/maintenance Provincial Board 1–5 years Low to moderate
      Employment Industry employees Provincial Board 1–3 years Low

      Special Notes

      • Online gambling (interactive casino games) remains prohibited, except for licensed online sports and horse race betting. A new Remote Gambling Bill is under consideration, which may introduce additional license categories and requirements for remote gambling operators in the future.
      • Licensees must maintain ongoing compliance with all regulatory requirements, including responsible gambling measures, reporting obligations, and technical standards.

      Gambling Tax

      Tax Rates for Gambling Operators in South Africa

      South Africa applies gambling taxes at both national and provincial levels, with each province setting specific rates for different gambling activities. The primary basis for taxation is either Gross Gaming Revenue (GGR), gross win, or turnover, depending on the gambling type and provincial regulations. Below are typical tax rates for key gambling verticals:
      Gambling Type Tax Basis Typical Tax Rate Notes
      Casinos Gross Gaming Revenue / Gross Win 8% – 15% Rate varies by province; e.g., 8% in Northern Cape, 10–15% in others
      Limited Payout Machines (LPMs) Gross Gaming Revenue 5% – 10% Provincial differences apply
      Bingo Gross Gaming Revenue 8% Common rate in several provinces
      Bookmakers (Horse Racing) Winnings 6% Calculated on player winnings
      Bookmakers (Other Sports) Gross Profit 6.5% Based on net profit from betting
      Totalisator (Pari-mutuel Betting) Gross Takings 2.5% Plus 10% on undistributed takings and unclaimed dividends

      Basis for Taxation

      • Gross Gaming Revenue (GGR): Most casino, bingo, and LPM taxes are calculated as a percentage of GGR, defined as bets placed minus winnings paid out to players.
      • Winnings: For bookmakers on horse racing, tax is often levied as a percentage of player winnings.
      • Gross Profit: For bookmakers on other sports, tax is based on the operator’s gross profit from all betting transactions during the tax period.
      • Turnover: Totalisator betting is taxed on gross takings (turnover), with additional levies on undistributed and unclaimed funds.

      Tax Reporting and Payment Procedures

      • Gambling operators must register with the relevant provincial gambling board for tax purposes as part of the licensing process.
      • Operators are required to maintain detailed records of all gambling transactions and submit periodic (usually monthly) tax returns to the provincial regulator.
      • Tax payments are typically due monthly, based on the previous month’s activity, and must be paid directly to the provincial authority.
      • Failure to submit returns or pay taxes on time can result in penalties, interest charges, and potential suspension or revocation of the gambling licence.
      • Operators may be subject to audits by provincial regulators to verify compliance with tax obligations.

      Tax Incentives, Exemptions, and Special Provisions

      • There are generally no broad tax incentives or exemptions for gambling operators; all licensed operators are subject to the standard rates set by provincial authorities.
      • Some provinces may offer specific relief or reduced rates under exceptional circumstances, but these are rare and subject to regulatory approval.
      • Undistributed or unclaimed winnings from totalisator betting are subject to an additional 10% levy, ensuring that operators do not benefit from unclaimed player funds.
      • No tax is levied on illegal or unlicensed gambling activities; instead, such activities are subject to enforcement actions, including seizure of proceeds and criminal prosecution.

      Prohibited Individuals

      Age Restrictions and Identification Requirements

      • The minimum legal age for participation in any form of gambling in South Africa is 18 years.
      • Operators are required to verify the age and identity of all players to prevent minors from accessing gambling activities. This is typically enforced through Know Your Customer (KYC) procedures, including the collection of official identification documents.
      • No winnings may be paid to a minor. If a minor participates and wins, those winnings must be withheld and reported to the relevant regulatory authority.

      Prohibited Gambling Activities and Game Restrictions

      • All forms of interactive or online casino gambling (including online poker and online casino games of chance) are prohibited. Only online sports betting and online horse race betting are permitted when offered by licensed operators.
      • Unlicensed gambling activities, including unlicensed land-based casinos, betting shops, and online gambling platforms, are strictly forbidden.
      • Unlicensed dealing in gambling machines or devices, as well as operating gambling activities from unlicensed premises, is prohibited.
      • Any gambling activity not specifically licensed and regulated by the relevant provincial or national authority is considered unlawful.
      • Credit may not be extended to players by operators for the purpose of gambling.
      • Each gambling machine and table game must be pre-approved by the relevant provincial gaming board before being offered to the public.

      Advertising and Marketing Limitations

      • Gambling advertising and promotional materials must not target minors or vulnerable persons.
      • All advertising must include clear responsible gambling messaging and must not be misleading or encourage irresponsible gambling behavior.
      • Advertisements for prohibited gambling activities, including unlicensed online gambling, are not allowed.
      • Operators are restricted from offering inducements, bonuses, or discounts that may encourage excessive or irresponsible gambling.
      • Advertising must comply with national and provincial guidelines, and violations may result in severe penalties, including license suspension or revocation.

      Responsible Gambling Requirements and Player Protection Measures

      • Operators must provide information and resources for responsible gambling, including access to counseling and support services for problem gamblers.
      • Self-exclusion programs must be available, allowing players to voluntarily ban themselves from gambling venues or platforms.
      • Excluded persons (those who have self-excluded or been barred for other reasons) must not be allowed to gamble or receive winnings. Any winnings by excluded persons are forfeited and must be reported to the regulatory authority.
      • Operators are required to monitor player behavior for signs of problem gambling and intervene where necessary, including offering deposit limits and time-out options.
      • Strict anti-money laundering (AML) and KYC procedures are enforced to protect players and ensure the integrity of the gambling environment.
      • Operators must comply with all national and provincial standards for player protection, with regular audits and compliance checks conducted by regulatory authorities.

      Geographic and Location Restrictions

      • Gambling activities may only be offered at licensed premises, such as registered casinos, betting shops, bingo halls, and racetracks. Each venue must be licensed for the specific gambling activities it offers.
      • Online gambling services may only be provided by operators licensed within South Africa, and only for permitted forms (primarily sports and horse race betting).
      • Unlicensed gambling venues or the operation of gambling activities outside approved locations is strictly prohibited.
      • Provincial regulators may impose additional geographic restrictions, such as limiting the number or location of gambling venues within their jurisdiction.
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        Timeline

        Year/Date Event
        1965 Gambling is effectively prohibited under the Gambling Act of 1965, except for horse racing, which is considered a sporting activity rather than gambling.
        1995 The Wiehahn Commission publishes its report recommending the legalisation and regulation of gambling, laying the groundwork for modern gambling laws in South Africa.
        1996 The National Gambling Act of 1996 is enacted, introducing a national regulatory framework, legalising casinos, limited payout machines, and establishing the National Gambling Board.
        2004 The National Gambling Act of 2004 replaces the 1996 Act, strengthening national oversight, introducing uniform norms and standards, and specifically prohibiting interactive (online) gambling except for online sports betting and horse racing with proper provincial licenses.
        2008 The National Gambling Amendment Act is passed to legalise and regulate interactive gambling (online casinos and poker), but it is never brought into force due to opposition and legal challenges.
        2010 The North Gauteng High Court rules that all forms of online gambling, including those hosted outside South Africa, are illegal except for licensed online sports betting and horse racing.
        2018 A new National Gambling Amendment Bill is proposed to address gaps in the 2004 Act, especially regarding online gambling and consumer protection, but it fails to pass due to lack of provincial support.
        2024 The Remote Gambling Bill (B11-2024) is introduced by the opposition Democratic Alliance to regulate online gambling, aiming to fill the longstanding legal gap regarding interactive gambling.

        Requirements

        Software Certification and Technical Standards

        • All gambling machines and devices must be registered and certified according to the National Gambling Act and relevant provincial regulations. This includes mandatory registration, identification, and certification of each device to ensure compliance with technical standards.
        • Gambling equipment, including software used in betting and gaming operations, must be tested and certified by approved testing agents. Certification ensures that all systems are fair, random, and function as intended.
        • Operators are required to implement and maintain systems that enable monitoring and reporting to the National Central Electronic Monitoring System, which tracks gambling activity for compliance and integrity purposes.
        • Technical standards extend to the calibration and ongoing maintenance of gambling devices, ensuring continued compliance throughout their operational life.
        • Software updates and changes must be re-certified before deployment to the live environment.

        Data Protection, Privacy Measures, and Server Location

        • Operators must implement robust data protection measures to safeguard player information, in line with the Protection of Personal Information Act (POPIA) and other relevant privacy laws.
        • Personal and financial data must be securely stored, with access restricted to authorized personnel only. Encryption and secure transmission protocols are required for all sensitive data.
        • Operators are generally required to maintain their primary servers and data storage within South Africa to ensure regulatory oversight and facilitate compliance inspections.
        • Regular security audits and vulnerability assessments are mandated to ensure ongoing data protection and privacy compliance.

        Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures

        • Operators are classified as accountable institutions under the Financial Intelligence Centre Act (FICA) and must implement comprehensive AML programs aligned with international standards.
        • Full KYC procedures are required at the establishment of a business relationship with a customer. This includes verification of identity, address, and source of funds using reliable and independent documentation.
        • Ongoing monitoring of customer transactions is necessary to detect and report suspicious or unusual activities to the Financial Intelligence Centre.
        • Operators must provide regular AML training to staff and maintain detailed records of all KYC and AML activities for inspection by regulators.

        Financial Reporting, Auditing Standards, and Record-Keeping

        • Operators must maintain accurate and up-to-date financial records in accordance with generally accepted accounting principles and any additional standards set by the National Gambling Board and provincial regulators.
        • Regular submission of financial reports, including audited annual statements, is required. These audits must be conducted by independent, certified auditors.
        • Operators are obligated to keep detailed records of all gambling transactions, payouts, and player accounts for a minimum period as specified by regulation, typically several years.
        • All records must be readily accessible for regulatory review and compliance inspections.

        Technical Implementation Requirements for Responsible Gambling Tools

        • Operators are required to implement technical measures to support responsible gambling, such as self-exclusion mechanisms and deposit limit tools.
        • Systems must integrate with the national self-exclusion register maintained by the National Gambling Board, ensuring that excluded individuals are prevented from participating.
        • Operators must provide players with the ability to set personal limits on deposits, losses, and playing time, with these features easily accessible and enforced by the gaming system.
        • Responsible gambling messaging and access to support resources must be prominently displayed within all gambling platforms and at physical premises.
        • Operators are expected to monitor player behavior for signs of problematic gambling and intervene as necessary, with supporting policies and technical systems in place.

        Sources

        Primary Regulatory Authorities

        Legislation Resources

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          Important Information Notice

          Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.

          Last updated: 18 April 2025