The mass seizure of illegal gaming machines across Cape Town has been lauded by the Eastern Cape Gambling Board.
It is reported that the machines were touted for distribution across the region of the Eastern Cape, before the investigation.
There are relatively strict frameworks around the distribution of gaming machines in South Africa and the Eastern Cape, with only legally licensed Limited Payout Machines being allowed to be distributed.
Limited Payout Machines are solely allowed outside of the province’s casino locations, following strict regulations in venues such as pubs and restaurants.
On the other hand, there are specific gambling machines that are allowed to operate in casinos, these are more traditional slot and iGaming machines.
South Africa’s gambling market has started the year in the midst of a regulatory transition, with a touted tax shift still very much on the cards.
Stakeholders are currently filing responses to the proposed hike, which was originally issued in November last year.
The proposal would update the African nation’s tax regime by utilising a unified online gambling tax. The initial deadline for consultations was 30 January, but it has now been pushed back to 27 February.
South Africa still remains something of a favourable tax regime, despite the potentialchanges – which would bring in a unified tax regime across the country.
Currently, operators are taxed according to a GGR basis, with amounts ranging from 6% to 20%.
The country’s regulators have also taken an elevated approach to ensuring the illegal market is thwarted, both online and in brick-and-mortar venues.
Regulatory bodies have intensified their approach to ensuring a filtering out of illicit marketing through the formation of a new monitoring body.
This was underlined last year, when Parks Tau, Minister of Trade, Industry, and Competition, ordered his department to begin the process of appointing a National Gambling Policy Council.
It opened the door for a new strategy to be undertaken in the region after a growing number of gambling marketing content appeared online on a myriad of platforms, including YouTube.
It focused on eradicating illegal online gambling ads and providing increasing clarity in the gambling framework after a seven-year operational hiatus that last saw the Council convening in 2018.
Updating Parliament, Tau stated: “The National Gambling Act prohibits the placing of advertisements in media primarily directed at persons under the age of 18.
“There is an issue of sponsorship of family-friendly programmes, where major bookkeepers sponsor them. This results in the increase of visibility and frequency of gambling content during shows mostly viewed by minors.”
Tau added: “There is an intention to ensure that we can regulate online gambling. It is an environment where different provinces have different approaches, with some being more relaxed. We also want to ensure that there is rehabilitation of addicts.”
Tau continued: “This surge in illegal online gambling activities and the widespread advertising of gambling, often targeting vulnerable populations, has presented new challenges for regulators.
“The convergence of technology, consumer behaviour, and regulatory frameworks has necessitated a robust response to these challenges.”
