The Legal Landscape Of Sports Betting In South Africa

Being an enthusiast of online gambling in South Africa can be a tricky hobby to try and navigate. Each province has its own regulations, there is country-wide legislation that can dictate how you play, and there are ever-changing proposals that come from various political parties that try to change how online gambling works across the land.

Online sports betting is in a bit of a clearer space when it comes to legislation and regulations in South Africa, there are more clear-cut rules and regulations which is one of the reasons its popularity has spiked over the last few years.

Let’s take a closer look at the landscape of sports betting, current legal regulations, and what bettors will need to know in order to remain compliant when placing bets.

Current Legal Status Of Online Sports Betting

Currently, online sports betting in South Africa is legal and regulated with the caveat that the person conducting the business has the licenses required by the specific regulatory board of each province.

Over 30 licensed sports betting platforms are available for South Africans to make use of, as of 2021, which allow for bets on games such as rugby, soccer, cricket, and even the Durban July. 

Each of these platforms has been licensed by their respective provincial regulatory board as well as the NGB (National Gambling Board) which operates under the Department of Trade and Industry.

Provincial Licensing

As mentioned above, each sports betting outlet needs to be licensed by its respective provincial board. This is because each province in the country regulates gambling slightly differently. There are various reasons for this, for example, regulated gambling can contribute towards a province’s GDP which in turn helps to better fund help centres or uplift communities.

Each province has its gambling board which oversees activities within its borders. The larger NGB has oversight over the provincial boards and ensures that they are cooperating and helping to achieve the goals of the NGB.

Licensing Requirements

For an individual or establishment to apply for a gambling license, they would need to apply for it in the province in which they operate. 

• The provincial board will issue a RPA (Request for Application) and you will need to wait to see if the application is successful. 
• Licenses are continuously monitored and can be updated which means that, should a license be issued, there exists the possibility of losing it in case background checks and business practices are found lacking.
• Licenses will also need to be renewed periodically in order to remain compliant.

Responsible Gambling Measures

Being responsible while gambling or placing bets is a burden that falls on both the bettor and the platform. Measures need to be put in place to protect vulnerable people and, of course, to avoid any potential problem gambling. In this effort, there are various measures that have been established across the industry to make sure that players are aware of the risks associated with online betting.

The first, and potentially the biggest, measure is of course being licensed. In order for a platform to receive its license from the regulatory board, it needs to meet a set number of criteria. Once licensed, the operator is bound to the standards of responsible gaming as set out by the NGB.

Restricting online betting only to those 18 and above is another measure which ensures that protected groups are removed from the potential harms of online betting and gambling. The age of punters needs to be verified before a single bet can be placed.

Additionally, responsible gambling messaging needs to be on display for punters to view. This messaging needs to come across in any and all advertising of the activity or product which is being promoted. 

In addition to responsible messaging, tools like self-exclusion, deposit limits, time-outs, and services and resources need to be made available for anyone who is experiencing or suffering from problem gambling.

Payment Methods & Transactions

Whenever you log into an online betting platform with the intent to place a bet, always make sure that you are aware of both the deposit and withdrawal methods. Each online gambling or betting operator has its own list of accepted methods, so make sure that your one of choice is among that list.

Most often, online casinos or betting providers will accept a combination of either:

• Credit and debit cards like Visa and Mastercard
• EFT transfers
• E-wallets like Payz, PayDO and Luxon Pay
• Cryptocurrency like Bitcoin
• Vouchers
• Mobile app methods like Zapper or Capitec Pay online banking

 

Withdrawal methods are usually more limited in terms of options but usually have direct bank transfers as a default option. Check out all the available EFT options here.

While deposits are usually instant, withdrawals can take anywhere from hours to days depending on the method used. Always make sure that you are aware of your options before committing to an online casino.

Taxation

Taxation on gambling in South Africa involves several key components, each designed to ensure that both operators and players contribute to the public revenue while maintaining a fair and regulated gambling environment.

Each province in South Africa has the authority to impose its own taxes on gambling activities. These taxes are levied on the GGR and are payable by the operators to the provincial government. The tax rates differ between provinces and may also depend on the type of gambling activity, such as sports betting or casino games.

Gambling operators in South Africa are generally taxed based on their Gross Gaming Revenue (GGR), and the specific tax rate on GGR can vary depending on the type of gambling and the province. They are also subject to the standard corporate income tax, which applies to all businesses in South Africa

When it comes down to brass tacks and bettors, SARS (South African Revenue Service) is somewhat lenient when it comes to online betting taxation legislation. Their aim is to allow bettors to enjoy the thrill of the bet along with any occasional wins that might come from it. Where they step in is when the line between occasional hobby and income-generating profession becomes blurred.

In this regard, frequent gambling activities which result in the generation of regular income, such as professional gamblers, will need to be declared to SARS as it is taxable. 

Additionally, a 15% withholding taxwill be applied to gambling winnings which exceed R25,000.

Recent Developments In The Industry

The world of online gambling and online sports betting is highly dynamic, it is constantly changing and shifting and keeping on top of everything can be a little intimidating. While it can be a little daunting to try and keep up with all the news and developments in the space, it is vital that you do so that you can make absolutely sure that you are remaining compliant.

An example of this is that the DA has proposed a remote gambling bill which aims to change the way licenses are regulated. It is unclear whether this bill will now be fast-tracked considering the DA now forms part of the Government of National Unity.

The 15% withholding tax on winnings which exceed R25,000 is also a new development which has been implemented by SARS.

The landscape is forever evolving so it’s vital to make sure that you’re aware of the constant changes.

What To Know To Stay Safe & Remain Compliant

It’s easy to get swept up in the excitement of massive earning potentials and the high-intensity environments in which online betting can operate but it’s important to keep your feet planted on the ground and remain level-headed when placing your bets.

One thing that will keep you compliant and safe when navigating the digital jungle is to only ever use online platforms which are licensed and reputable. In this way, you have the reassurance of knowing that you are somewhat protected by the law and that the platform used is a known entity.

Make sure that you understand the operator’s terms and conditions before committing anything to them. They say that the Devil’s in the details which can be true in some cases. Fully comprehend the terms and conditions so that nothing will be a surprise to you later on.

You must be at least 18 years old to legally participate in online sports betting in South Africa. Operators are required to verify your age before allowing you to open an account or place any bets. It is also important to provide accurate personal information when registering (name, date of birth, address, email), as this will be needed for identity and account verification and withdrawals. 

Never bet with anything that you’re not prepared to lose. Setting a limit on your spending is a great way to make sure that your hobby remains just that. In the same way, try not to get swept up in the excitement of big wins and then bet it all again. Understanding that it’s all a numbers game will help you to not overspend and still walk away with something in the end.

When depositing or withdrawing funds, use secure and reputable payment methods supported by the betting platform. Options may include EFT transfers, e-wallets, or credit/debit cards.

The legal landscape for online sports betting can change. Keep yourself informed about any new regulations or changes to existing laws that might affect your betting activities.

Sports betting trends in South Africa show that it is on the rise. As more and more people start taking to online sports betting, it’s going to become more and more mainstream and popular. As it stands, it is already a multi-billion Rand industry that isn’t showing signs of slowing down.