for early access to the latest igaming videos!
and get the latest igaming news first!
South Africa’s new gambling enforcement team has begun its first field operations, arresting 13 people and uncovering five suspected illegal gambling businesses operating behind the appearance of internet cafés.
The raids took place in Modimolle on August 4 and Lephalale two days later. The operations were carried out by the National Gambling Board (NGB), provincial gambling regulators and the South African Police Service.
Five customers, six site managers and two cashiers were arrested. Criminal cases were opened, fines issued and R10,853.10 in cash was confiscated.
The relatively modest cash seizure was not the main finding. Investigators were looking at how the businesses presented themselves.
Internet Cafés as a Front
All five premises inspected during the Limpopo operations were reportedly operating as internet cafés while allegedly offering illegal gambling services.
That setup gives unlicensed gambling businesses a more ordinary appearance, while allowing gambling activity to take place outside the regulated market.
The NGB’s acting chief executive, Lungile Dukwana, said the creation of the Illegal Gambling Task Team should improve coordination between regulators and police. The team was formed under the Law Enforcement Forum, bringing together the NGB and provincial licensing authorities.
The Limpopo raids involved several agencies, including the Limpopo Gambling Board, Mpumalanga Economic Regulator, North West Gambling Board and SAPS.
Limpopo is the first province targeted by the new enforcement operation. The plan is to use what authorities learn there as the programme expands to all nine provinces.
A Wider Fight Online
The physical raids are only one part of the crackdown.
South Africa is also trying to deal with illegal gambling websites targeting local players. In June, the NGB sought a technology provider capable of identifying, monitoring, blocking and reporting such sites. That procurement process was amended in July.
The scale of the online market outside the regulated system could make enforcement considerably harder.
A Yield Sec report commissioned by the South African Bookmakers’ Association estimated that illegal operators represented about 62% of online gambling activity in South Africa. It put potential gross gambling revenue flowing offshore at more than R50 billion a year.
That figure is an industry estimate, not a government measure, but it illustrates why regulators are moving beyond individual raids.
The NGB launched a Verified Gambling Operators portal in April to help players check whether gambling businesses are licensed. The regulator is also urging consumers to verify an operator’s status before depositing money.
For the new task team, the Limpopo operations were a first test. The next phase will determine whether the model can be applied consistently across the country’s much larger illegal gambling market.
Source: www.casino.com
