NGB Goes Up Against Online Casinos &Cryptocurrency
2017, they expects the SSA region to regain momentum and expand 3.6%. Major Growth Countries for 2016: Ivory Coast Kenya Mozambique Tanzania Rwanda Sengal Botswana Countries like Nigeria, South Africa, Uganda and Egypt saw decline in growth via GDP, Infrastructure development and other thing. The NGB has pleasure in sharing the latest trends related to gambling sector performance and especially national gambling statistics and market conduct information as at the end of Financial Year (FY) 2017/18 (1 April 2017 to 31 March 2018). We trust that our stakeholders and the public will find the content informative, useful and beneficial. Despite online gambling being illegal in South Africa, a myriad of unlicensed operators offer their services in the country, seemingly with impunity. The Court subsequently handed down an unprecedented ruling in which R1.25 million in winnings were confiscated and forfeited to the State. The issue has seen the NGB and South African Police Service raiding illegal online casinos, with the Department of Trade and Industry confiscating R1.25 million worth of winnings in 2017. The board has revealed that illegal online activities are eroding revenue generated by the legal betting industry. According to the Minister the proposed gambling tax would assist in discouraging excessive gambling in South Africa. In the 2013 Budget Speech, it was announced that a national tax based on gross gambling revenue of casinos would be introduced at a rate of 1 per cent in addition to the provincial rates.
![Gambling Tax South Africa 2017 Gambling Tax South Africa 2017](/uploads/1/3/5/7/135770472/987813948.jpg)
In South Africa, online casinos are still causing the National Gambling Board headaches, and emerging crypto-currencies are just adding fuel to the fire says Caroline Kongwa. Kongwa is the NGB Accounting Authority, and she made this statement over the course of a two-day conference in Pretoria, Gauteng, over the 18th and 19th of July.
Winnings Confiscated
The issue hasseen the NGB and South African Police Service raiding illegal online casinos,with the Department of Trade and Industry confiscating R1.25 million worth ofwinnings in 2017. The board has revealed that illegal online activities areeroding revenue generated by the legal betting industry. It noted thatoperators are creating games that compete with what has traditionally beenoffered, and this has had a detrimental impact on formal betting.
Kongwa statedthat this impacts the government’s tax revenue ultimately, which then resultsin a loss of employment opportunities, a decrease in local economic activity,and consumer rights and protections being eroded.
International Operators are Problematic
Online gambling includes Poker games, traditional casino games like Roulette and Blackjack, and sports betting, and these options have been available since 1994. Although many countries restrict online betting or ban it altogether, it has been legalised in certain Canadian provinces, the majority of the European Union, and several Caribbean nations.
Kongwarevealed that online operators continue to offer their services in South Africadespite not being strictly legal. The only lawful route for South Africans isbetting through licensed bookmakers who have the proper permits to offerwagering on sports events and horse races. Citizens are not able to gamble withunlicensed international operators.
Serious Consequences for Law-Breakers
Presently,the gambling industry, except the National Lottery but including otherlotteries like society lotteries, promotional competitions and sports pools, isunder the regulation of the NGB. It is also subject to the 2004 NationalGambling Act. Kongwa said that, in light of online gambling being illegal inSouth Africa, operators face severe consequences if they’re caught offeringunlawful games, and gamblers could see their winnings being confiscatedentirely.
Kongwa went on to say the gamblers could also face prosecution for taking part in illegal activities. She went on to say that the Department of Trade and Industry took the National Gambling Amendment Bill to parliament in 2018, and this recommended no new forms of betting be allowed. It also included several improved provisions regarding legislation to deal properly with illegal gambling.
The proposedbill suggested provisions should be included which forbid illegal winnings,along with amendments to ban Internet service providers, banks, and otherpayment facilitators from smoothing the way for unlawful activities to occur.This bill would also cover the transferal, payment, and promotion of payment ofillegal winnings to South Africans.
Thisprohibition will require extreme vigilance by the NGB in terms of alertingvarious institutions to illegal operations. If this notification fails to beimplemented, the affected body or institution will be criminally liable interms of the Act, and any winnings could be added to the Unlawful WinningsTrust.
Gambling license in South Africa
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
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
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.
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.
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
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:
The main duties of accountable institutions include:
- 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.
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.
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
www.ggb.org.za
2. Western Cape:
www.wcgrb.co.za
www.wcgrb.co.za
3. Eastern Cape:
www.ecgbb.co.za
www.ecgbb.co.za
Personal Income Tax South Africa
![Evening Evening](/uploads/1/3/5/7/135770472/694679464.jpg)
4. Free State:
www.gla.fs.gov.za
www.gla.fs.gov.za
5. Kwazulu Natal:
www.kzngambling.co.za
www.kzngambling.co.za
6. Mpumalanga:
www.mgb.org.za
www.mgb.org.za
7. North West:
www.nwgb.co.za
www.nwgb.co.za
8. Limpopo:
www.lgb.org.za
www.lgb.org.za
9. Northern Cape:
www.ncgb.co.za
www.ncgb.co.za
Alternative to a South African Gambling License
Gambling Tax South Africa 2017 Evening Gowns
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.