Gamblers who won money during online gambling play but were cheated out of their earnings by a gambling outlet could have recourse in law.

The provincial gambling board has the power to act against outlets that cheat or fail to pay the winnings to a player who wins in an online gambling activity. They will be fined or their businesses closed.

All this depends on whether the Remote Gambling Bill presently before parliament passes the scrutiny it is expected to undergo after public submissions were concluded.

Remote Gambling Bill

The deadline for public submissions is 8 December.

The purpose of the draft Bill, which was initiated by DA MP Toby Chance as a Private Member’s Bill, among others, is to regulate online or web-based or any electronic gambling activities.

It also provides for the licensing and control of all remote gambling activities by provincial gambling boards in their provinces.

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The legislation came about due to the delay in the enactment of the National Gambling Amendment Act, which was designed to regulate interactive gambling.

The Act was approved by the National Assembly, but disapproved by the National Council of Provinces, along with its regulations.

The Act remained in the hands of the parliamentary mediation committee since its rejection.

Act in hands of parliamentary mediation committee

The introduction of the Remote Gambling Bill is aimed to provide uniform norms and standards in remote gambling, including all electronic gambling activities.

The Bill was seen as an outlet in the light of the impasse in the final passing of the 2008 Act.

Chance said there was no regulation of such electronic gambling in South Africa and this put many gamblers at risk of losing their money due to unscrupulous gambling outlets that failed to pay after a player had won online.

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This environment would also be strictly controlled to ensure fair play and that gamblers were not put at a disadvantage.

According to Chance, the legislation was meant to ensure an efficient and effective remote gambling regulatory regime.

It also provides for the National Gambling Board to provide oversight, evaluation and monitoring functions.

Oversight, evaluation and monitoring functions

Chance told The Citizen the legislation would not only authorise the provincial board to issue licences to outlets, but also empower it intervene in disputes over payment to ensure players were not disadvantaged and the deserved earning was received.

Noncomplying outlets would be fined or have their licences withdrawn.

In a note to the Bill, Chance said that over the past 13 to 14 years, the public had been exposed to and participated in online and remote gambling that was not regulated.

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“By not regulating this gambling activity, the erosion of the rule of law and criminal activity is being encouraged, while the public is not effectively protected.

“At the same time, a lack of regulation is resulting in revenue and jobs being lost to other gambling jurisdictions.”

Chance said any gambling activity, even those that occurred on online sites not located in South Africa, would be regulated.

Gambling activity would be regulated

Aggrieved users would have to approach the provincial gambling board in case of a dispute.

However, he said it was still a long way before the Bill became law due to the several steps it had to follow within parliament.

It could take a year or longer before it was passed.

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The public submission would be received by the portfolio committee on trade industry and competition, which will be tasked with deciding whether the legislation was desirable at all.

If it passed this stage, then it could go further to a second reading in parliament and possibly passed into law and later signed by the president.

Chance believed his proposed legislation would easily replace the postponed National Gambling Amendment Act and its regulations.