1. 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

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

3. 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

4. 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

5. 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)

6. 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

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

8. 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

9. 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

10. 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

11. 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

12. 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)

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

14. 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

15. QUESTIONS AND COMMENTS
Presenter:
Mr Dennis Makhari
Compliance Specialist
National:
Web: 
Address:  420 Witch-Hazel Avenue, Eco-Glades 2, Block C, Eco-Park, Centurion, 0144