South Africa Online Poker Online Gambling Bill Criticized by MPs

Long-awaited legislation introduced by Fungai Sibanda, the acting Director General of the Department of Trade and Industry (DTI), to the South African Parliament last week to regulate online poker and online gambling has run into opposition from some members of Parliament.

The National Gambling Amendment was proposed specifically as a way to prevent crime and to protect players, problem gamblers and the under aged as an alternative to the current completely unregulated environment.

"This [unregulated] situation has resulted in a considerable loss of revenue to the national fiscus and compromises the country's reputation as a responsible global citizen and the reputation of the gambling industry in general," the memorandum attached to the Act notes.

LIKE MAKING MONEY OUT OF PROSTITUTION

Several objecting members of Parliament (MPs), led by ANC member Ben Turok, protested the bill saying the only reason to legislate internet gambling, or 'interactive gambling' as the bill calls it, should be to abolish it or curb it, reported the business publication Fin24.

"This is a moral issue", Turok said, and he told the DTI delegation that one argument Sibanda put forward in favour of the Bill, to allow the fiscus to benefit, was wrong.

"In my view your approach is the wrong one," Turok said. "It is a social evil, that we may have to regulate to curb, but we must not make money out of it." He said it would be like making money out of prostitution.

He added that the legislation is not sufficiently critical of gambling. "When you have a relative evil in society either we legislate to prohibit it or to curb it. You don't legislate to encourage it."

Another objecting MP, Solomon Rasmeni from the North West province, told members that he would only support the new Bill if it is to be a step "towards doing away with this unacceptable activity."

He emphasized that he wanted to see gambling, whether on the internet or in the casino, done away with entirely. "It eats the moral fibre of society," he added.

Other MPs complained that all the gambling sites are owned by whites, and that blacks are impoverished by it.

WHAT THE BILL CONTAINS

In addition to protecting minors and vulnerable people from harm and exploitation, the Act provides for approval of interactive games, equipment and software, registration of players, dispute resolution and fair treatment of players.

The bill also deals with advertising, licensing, compliance and enforcement, problem gambling, and money laundering.

Western Cape member, Danny Oliphant, sounded a note of caution about the bill, saying, "I'm not sure we will be able to tackle the moral issues." He also opposed the notion of compelling all players to register before they can play, saying that this will mean they become a permanent participant, and will not be able to be just a casual gambler.

NATIONAL LICENSING PROPOSED- EVEN FIRMS OUTSIDE SOUTH AFRICA

Brian Muthwa, director of legal affairs at the DTI, told the Parliamentary Portfolio Committee on trade and industry that licenses to offer online gambling to South Africans will be issued as national licenses.

"We have to ensure that all those who are involved in the production and distribution of interactive gaming software and equipment are properly licensed," he said.

Licensing would include operator licenses, employee licenses for key staff and licensing/testing and certification of interactive gambling software, equipment, and the manufacturers, suppliers and maintenance providers of interactive gaming equipment.

The regulatory requirements will also apply to software vendors located outside SA, who would also have to be licensed in South Africa, Muthwa said.

"This is because those games would be accessible to South African players from anywhere in the world," he explained.

The National Gambling Amendment comes two years after results of a comprehensive international study conducted by a specially appointed commission of online gambling technology and jurisdictions was submitted to the South African government.

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