Gambling license in South Africa

1. South Africa is a country in Africa where you could legally gamble. All types of gambling were banned for a long time and then accepted around 1994/96. Thanks to the National Gambling Act a lot of land-based casinos came back to life – currently there are a total of 59 legal gambling facilities, open to South African and foreign players.
2. The mobile casino has taken the concept of personalized gaming to a whole new level. Now you can play on the go 24×7 regardless of where you are. All you need is Gambling License In South Africa a Gambling License In South Africa smartphone that gives you Internet access via 3G, 4G, LTE, or Wi-Fi.

South African Local Casinos. All offshore betting sites wanting to supply UK customers must pay 'Point of Consumption' tax and acquire a UK Gambling Commission license.

Gambling within South Africa was largely restricted for many years, dating back to around 1673. Almost all forms of gambling were officially banned in 1965 with the passing of the Gambling Act. Horse racing, which was still considered a sport for many years, was however still legal, and the only place where people could place bets. This ban on gambling meant many illegal casinos began to pop up. By 1995 there were an estimated 2000 illegal casinos within South Africa. Luckily, with the new democratic government in 1994, the ban on gambling was lifted with the National Gambling Act. By 1996 the first legally licensed casinos were established and a single national lottery was launched. The National Gambling Act was the start of a diverse gambling community within South Africa.

Gambling and licensing

Gambling within SA is highly regulated and is done so by the National Gambling Board as well as the gambling board of each individual province.

The entire process of applying for a license is relatively straightforward. You can apply for a national or provincial license. A national license is generally for those applying as a manufacturer, supplier, maintenance supplier, or for those wanting to work within the gambling industry. A provincial license is simply valid within the single province in which it was issued and is better suited to and casinos or similar.

Both licenses may be applied for and issued through the provincial gambling boards and can be done by visiting the appropriate website (as listed below) and downloading the forms. The websites are quite easy to navigate and the entire application process will take anywhere between three months to a year.

Cost of a South African Gambling License

The cost of applications varies from province to province. Here are two examples:

Western Cape
Casino operator new license application fee: R 479 300.00
Casino annual licensing fee: R 239 650.00
Gambling employee fee (new application and yearly fee): R129
Bookmaker new license application fee: R11 977
Bookmaker annual licensing fee: R2403

North West Province
Casino operator new license application fee: R230 000
Casino annual licensing fee: R 100 000
Casino employee licence fee: R500
Bookmaker new license application fee: R6000
Bookmaker annual licensing fee: R5000

Other considerations
A big part of obtaining a South African gambling license is the probity process. This, in short, is a KYC process on steroids and will take up the majority of your time, effort, energy and money. Legal fees to complete this process can amount to hundreds of thousands of rands. While we understand the reason for the process, when compared to other jurisdictions such as the UK, Malta and Curacao, the same process is less bureaucratic and less authoritarian in their approach which is the reason why they have a much more vibrant and active gaming industry.

Maintaining Your License

Licenses are generally valid for different time periods across the different provinces. To maintain your license you will need to pay a set yearly fee, as given in the above examples. Likewise, if you wish to work at another casino or to move the premises of your existing casino, then you will need to apply for such. Employee licenses are linked to the position which they hold with a specific operator. Every Gambling machine or device must also be registered in order to be considered legal.

National licensees will need to comply with the applicable provincial law within whichever provinces they are conducting business. Provincial licensees will obviously be expected to do the same.

Failure to pay taxes, levies or fees will jeopardise your license as will non-compliance with any of the laws set out in the National Gambling Act. A person convicted of an offence in terms of the National Gambling Act is ‘liable to a fine not exceeding R10 000 000, or to imprisonment for a period not exceeding 10 years, or to both a fine and such imprisonment.
If a licensee is in breach of a condition of a license they are ‘liable to an administrative penalty not exceeding 10% of the annual turnover of the licensee.

You may surrender your license by choice via written notification to the provincial licensing authority.

Reposting Requirements

Gaming License South Africa

Suspicious or illegal activity can be reported directly to the respective provincial gambling boards or the National Gambling Board itself.

Anti-money Laundering

South Africa has three acts which relate to Anti-money laundering: the Prevention of Organised Crime Act (POCA), Financial Intelligence Centre Act (FICA), and The Protection of Constitutional Democracy Against Terrorism and Related Activities Act (POCDATARA).
The main duties of accountable institutions include:

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• Identifying and also verifying clients
• Reporting any suspicious transactions
• Keeping records
• Training staff
• Reporting cash transactions over the prescribed limit
• In conclusion, formulating and implementing internal rules

Each legal gambling institution must ensure that all the necessary policies, procedures and systems are in place whilst ensuring full compliance with the FICA Act.
South Africa has a Financial Intelligence Centre (FIC) which is run under the FICA Act. There is also a Money Laundering Advisory Council who works alongside FIC and advises the Minister of Finance. All information regarding money laundering activities must be reported to FIC who will then hand over to the appropriate authorities.

TAX

Corporate tax in South Africa is set at a flat rate of 28% for all companies.
Although a withholding tax on winnings has been proposed since 2011, nothing has been set in stone.

Software Testing and Online Gambling

Any machine or device which needs calibration or certification must be tested by a licensed testing agent. The agent will need to make sure that the machine/device is compliant with the applicable standard. They record all test results and issue a report. The South African Bureau of Standards must then analyse the results and if found compliant they issue a letter of certification.

Online gambling is still illegal within South Africa except for online betting via a licensed South African bookmaker. Both the operation and advertisement of online casinos within South Africa are illegal acts.

Contact the South African Gambling Commission

For more information:

1. Gauteng:
www.ggb.org.za

2. Western Cape:
www.wcgrb.co.za

3. Eastern Cape:
www.ecgbb.co.za

4. Free State:
www.gla.fs.gov.za

5. Kwazulu Natal:
www.kzngambling.co.za

6. Mpumalanga:
www.mgb.org.za

7. North West:
www.nwgb.co.za

8. Limpopo:
www.lgb.org.za

9. Northern Cape:
www.ncgb.co.za

Alternative to a South African Gambling License

A curacao based gambling license is perfect for your business if you wish to offer services abroad. The license is regulated by the Government of Curacao and is accepted by all banks and payment service providers.

We work with the local authority assisting our clients with their gambling license needs, get in touch on Skype, WhatsApp or Email for further information.

THE community of Ba Mocha Maubane has accusedSun International of underhand dealings after the hotel and leisure giant seeksto discontinue its running of Sun Carousel.

TheBa Mocha Maubane, through their business arm, the Ba Mocha Maubane LeisureGroup (PTY) LTD, are shareholders in Sun Carousel.

Apparently,Sun International decided to dispose of the popular Carousel due to anunfavourable business climate exacerbated by the effects of Covid-19.

However,other stakeholders, including Ba Mocha Maubane seem to be having none of it.

In alengthy media release, they claim that the decision to cancel the gamblinglicence for the Carousel resort was arbitrary on the part of Sun International.

The releasereads:

1. Sun International has on 1 April 2020 senta letter to the North West Gambling Board (“NWGB”) to voluntarily suspend SunCarousel’s Casino Licence and the processing of the financial interestapplication submitted by Ba Mocha to the NWGB and released a public communiquéissued to the “Sun Family” on 14 April 2020 without consulting its 40% coshareholder in Sun Carousel; BA MOCHA MAUBANE LEISURE GROUP (PTY) LTD (“BAMOCHA”).

2.The communications were issued on behalf of Sun International by its Chiefexecutive, Anthony Leeming to the NWGB Acting Chief Executive Officer Mr.Bafana Mabele.

3.None of the above has been discussed by Sun International with Ba Mocha as the40% shareholder in Sun Carousel and Ba Mocha has expressed in their lawyersletter from Motalane Inc.’s Mojalefa Motalane of 18 April 2020 to SunInternational that the unilateral conduct by Sun International appears to be anopportunistic strategy to secure an advantage in retrenchment proceedings toaddress the general financial challenges of Sun International—without propermotivation and full disclosure of all the relevant commercial, social andfinancial circumstances applicable to Sun Carousel in particular, against thebackdrop of those applicable to Sun International in general. 3.1. Ba Mocha isextremely disturbed and perturbed that Sun International would unilaterallymake such important commercial and life changing decisions, affecting a numberof diverse parties without due engagement.

3.2.It is not only the shareholders of Ba Mocha whose rights and interests are atstake, but also those of the community and families depending on the staffmembers and employees of Sun Carousel, the majority of whom are communitymembers of the village of Bakgatla Ba Mocha in Maubane.

3.3.It is in the interests of Sun Carousel, its employees, its other stakeholdersand indeed South Africa as a whole that the utmost care must be taken topreserve current employment relationships in the country to the maximum extentpossible, inter alia by maintaining businesses instead of destroying them, asfar as possible.

3.4.The aftermath of the Covid-19 pandemic will provide new opportunities toinnovative business concepts which have already been mooted by Ba Mocha to SunInternational. Sun Carousel might well be in a unique position to create newjob opportunities and increase its own worth, as well as the wealth of itssurrounding community; the business development strategies involve theimmovable property, resources and support of the local Bakgatla Ba Mochacommunity led by Kgosi Pontsho Maubane to be utilized.

3. 4.1.section 163 of the Companies Act, no 71 of 2008. 5.1.1. converting SunCarousel into a casino and theme & water park resort;

5.1.2. introduction of a Safari Park;

5.1.3. introduction of a Museum withhistoric, scientific and/or artistic significance;

5.1.4. rebranding of all current and newofferings;

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5.1.5. marketing the business as a premierconference and events facility;

5.1.6. change of Management of the HotelAccommodation, Dining and Entertainment facilities;

5.1.7. development of a new Mall/LifestyleCentre on the property owned by The Bakgatla Ba Mocha Maubane adjacent to SunCarousel;

4. Ba Mocha is of the view that theunilateral actions of Sun International fly in the face of the provisions of: –

5. Sun Carousel opened its doors over twodecades ago in November 1991 through the efforts of the late Mr. Sol Kerznerand has been described as one of Sun International’s most successful casinoswhich set the pace for other casinos to follow and which was credited as beingthe first South African casino to pay out a Jackpot of over R5 million. It isdifficult to conceive of a valid reason why it should now simply close itsdoors, without having provided Ba Mocha an opportunity to make submissions andproposals to Sun International in this regard; including but not limited to:

Gaming License South Africa

5.1.8. development of various forms ofhousing and recreational facilities on the property owned by The Bakgatla BaMocha Maubane adjacent to Sun Carousel.

6.1. Ba Mocha includes the youth, women andpeople with business acumen drawn from a variety of disciplines, which Ba Mochawishes to see manifest through its ownership of its stake in Sun Carousel.

6. As with all other businesses the worldover during these economically trying times, our client notes the financialpressure placed on Sun International by its non-performing businesses due to aweakened South African and global economy and recently the outbreak of theCorona Pandemic. However, Ba Mocha disagrees that this automaticallynecessitates the permanent closure of the doors of Sun Carousel—especiallywithout Ba Mocha as a key equity partner and stakeholder having been affordeddue opportunity to make inputs as to how the business can be turned around tocontinue providing a sustainable source of employment to many families in thearea of The Bakgatla Ba Mocha Maubane and creating an economic empowermentopportunity for Ba Mocha.

7. Ba Mocha requested Sun International notto proceed with any steps to close Sun Carousel and to withdraw its request tothe NWGB for the suspension and voluntary surrender of the gambling licence,pending negotiations regarding the business turn around strategies proposed by~ Ba Mocha.