DEPENDENCIES IN THE ERADICATION OF IILLEGAL GAMBLING IN SOUTH AFRICA Presentation to: GRAF: 23 – 26 April 2017 GRAF Theme: Eradication of illegal gambling on the African continent

Introduction (and legal South African regime) CONTENT Introduction (and legal South African regime) Public awareness campaigns Enforcement Justice system Collaboration Conclusion

INTRODUCTION (AND LEGAL SOUTH AFRICAN REGIME) The National Gambling Act 7 of 2004 makes provision for the following authorised gambling activities: Gambling games at casinos (slots and tables) Betting on horseracing and sport (also though the internet – licensed bookmakers) Limited Payout Machines Bingo Lotteries and associated schemes are authorised by the National Lotteries Commission of South Africa

INTRODUCTION (AND LEGAL SOUTH AFRICAN REGIME) Gambling is a concurrent legislative competency between national and provincial government Gambling regulation needs to create a balance between revenue generation and protection of the public, particularly vulnerable persons It therefore follows that curbing illegal gambling in South Africa is a collaborative effort between Provincial Licensing Authorities, the National Gambling Board and other Law Enforcement Agencies

INTRODUCTION (AND LEGAL SOUTH AFRICAN REGIME) Online gambling activities have grown substantially and become very popular since the early 1990’s 2016 (Globally): 3,640 listed sites 1,155 site owners Operation in 127 jurisdictions 442 payment methods [Source: Casino City, 2016] The start-up and running costs, a well as barriers to entry for online gambling are significantly less than for land-based casinos Approximately 96 online gaming sites accept participants from South Africa (Casino City, 2016)

PUBLIC AWARENESS It is imperative in the fight against illegal gambling to make sure that the public is aware of the legal modes of gambling This is done through: National campaigns (the dti and NGB) Billboards Radio interviews

ENFORCEMENT It is necessary to ensure that the enforcement team is well trained and understand the industry and its impact in the economy

ENFORCEMENT Server based forms of illegal gambling seem to be favoured in place of traditional slots: Server can be housed in the next building or in different country Low infrastructure costs Easy maintenance Redundancy Internet accessible via mobile devices such as tablets and smartphones Low data costs mean wider reach

ENFORCEMENT Activities in cyberspace requires new methods of enforcement Balance between freedom of information and crime prevention Perpetrators may be local or international Some of the illegal gambling sites display messages claiming to be lawful operators

ENFORCEMENT Enforcement methods may include: Prevent financial institutions (such as Banks) from allowing transactions for identified illegal gambling operations. Escrow account institutions such as Skrill, PayPal, etc. may be more difficult to police. Website Blocking (through ISPs or Country Firewall) Holding ISPs who knowingly allow hosting of illegal gambling websites accountable

JUSTICE SYSTEM Once the police effect raids and make arrests, there is an assumption that prosecutors and magistrates are fully aware of gambling laws to ensure successful prosecution of illegal gambling activities Training is needed to improve their understanding

COLLABORATION Illegal gambling is a multi-faceted crime. No single agency can be effective alone Collaboration between various agencies of state can yield better results (e.g. SAPS, Hawks, SARS, FIC, NGB, PLAs)

COLLABORATION ACROSS THE BORDER Collaboration between cross border states can curb transportation of terrestrial illegal gambling machines

CONCLUSION Illegal Gambling operators use sophisticated methods and platforms for their operations – Regulators must use sophisticated methods to curb the practice Illegal gambling operators are organised and effective – Regulators and law enforcement agencies must work together, educate one another, and prioritise the efforts in order to be successful

QUESTIONS AND COMMENTS Presenter: Mr Dennis Makhari Compliance Specialist National: 01000 33485 E-mail: dmakhari@ngb.org.za Web:  www.ngb.org.za Address:  420 Witch-Hazel Avenue, Eco-Glades 2, Block C, Eco-Park, Centurion, 0144