Bets off legal online gambling

The Department of Trade and Industry is to oppose all new forms of gambling, including online gambling, parliament heard yesterday.

Deputy director-general Zodwa Ntuli said it had been "inundated with requests to expand gambling" but its policy approach was to prohibit any introduction of new gambling activities such as dog racing and online gambling.

Online gambling is currently illegal.

Ntuli's statement caused some controversy in the portfolio committee on trade and industry, with DA MP Geordin Hill-Lewis indicating that he "fiercely disagreed" with the stance on online gambling in particular.

He said there was "significant demand" for the activity and, if properly regulated, it could develop jobs and become an important source of revenue for government.

"It is not your job to tell South Africans how to spend their time. It is your job to regulate gambling," he said.

ANC MP Priscilla Mantashe replied that electronic gambling was no different from any other form of gambling and that the government could not close its eyes if South Africans "are getting into situations they can't get out of".

The department's chief director of policy and legislation, MacDonald Netshitenzhe, said the job-creation capability of online gambling was questionable as many online gambling companies maintained their databases abroad.

He said discussions with the departments of Communications, Finance and the police indicated that there was insufficient capacity to police online gambling and associated crimes such as money-laundering.

Committee chairman Joan Fubbs said that when gambling was first legalised in South Africa, it was done in order to regulate it, rather than as a revenue stream. Over the past few years there had been a drive to expand gambling, but this opened South Africans to further problem gambling.