PROGRAMME 2: ENFORCEMENT

Purpose of the programme

The programme monitors the integrity of the processes and provides inputs in the development and maintenance of gambling technical standards. This programme is mandated in terms of the NGA to undertake co-operative activities to prevent and suppress illegal gambling activities and investigate suspected cases of unlawful gambling activities. Furthermore, the programme facilitates resolution of disputes as an effort to ensure fairness in the gambling industry.

Input to the technical standards committee

The South African Bureau of Standards (SABS) is the national institution for the production and maintenance of technical standards in South Africa. The SANS 1718 family of standards apply to the gambling industry. The NGB is mandated by section 22 of the NGA to ensure that all gambling machines and devices that are registered in terms of the NGA are certified as complying with the relevant standards (SANS 1718) for such machines and devices. Therefore, participation by the NGB in the SABS TC 1095 activities adds much needed value to the industry.

The NGB therefore participates as member of the Technical Committees listed. Participation aids the NGB in monitoring and influencing standards development for the benefit of regulated industries. Participation in the SABS standards development, SANAS assessment of test laboratories and NRCS, as well as regular engagement with NRCS will provide the NGB with important intelligence in the processes relating to the gambling product value chain.

Interventions implemented to protect the gambling industry

The South African gambling industry consists of nine (9) PLAs who are established by provincial gambling legislation to regulate gambling (excluding lotteries). Within their jurisdiction, each PLA is exclusively responsible to:

• Ensure that unlawful activities related to casinos, racing, gambling, and wagering and unlicensed gambling activities are prevented or detected and prosecuted.
• Conduct inspections to ensure compliance with the NGA, applicable provincial law and conditions of national and provincial licenses issued by it;
• Impose administrative sanctions on licensees in accordance with the NGA and applicable legislations; and
• Issue offence notices in respect of offences in terms of the NGA.

The NGB is mandated to assist PLAs to ensure that unlicensed gambling activities are detected, prevented, and policed. Further, the NGA provides for the establishment of the national inspectorate, the appointment of the national inspectors and functions of the national inspectors as stipulated in S76 and 77 of the NGA.

In the execution of the NGB’s responsibilities as stated in the above paragraph, the Enforcement Division intends to engage with relevant enforcement agencies to facilitate reporting and investigations of detected illegal gambling activities. Together with the PLAs and relevant enforcement agencies, the ED will be embarking on national inspections on unlicensed operations to gather information required to register enquiries and initiate investigations by the SAPS. Regular meetings will also be held with relevant agencies to monitor and provide status updates on the implementation of the national strategies intended to address illegal gambling activities.

There is an increased trend observed in the betting industry involving betting on live casino games as well as offering interactive games by some bookmakers in the country. Same is advertised on national television as bets taken on the outcome of a contingency. These games are online/interactive gambling, an activity which is prohibited in terms of the NGA.

Most of the legislated compliance requirements for systems and equipment used in these games are not taken into consideration in line with the provisions of the NGA. Thus, the ED will be embarking on an in-depth analysis of compliance considerations undertaken by the licensing authorities when authorising the said activities by its licensees and accordingly provide recommendations based on the outcome of the investigation and when necessary, take legal action.

Targeted investigations completed on the circumstances of illegal gambling
activity

The NGB has the sole mandate to investigate and make a determination whether the activity undertaken on a reported unlawful winnings matter was indeed unlawful in terms of the NGA.

The ED will further ensure, in complying with section 16(4) of the NGA, that the circumstances of the gambling activity of any winnings withheld and remitted to the NGB are investigated and if found to be illegally obtained, such funds will be forfeited to the State.

Unlawful winnings are remitted to the NGB by banks and other gambling establishments in terms of Section 16 of the NGA. Upon receipt of the following documents from the reporting institution the matter is recorded and prepared for investigation:

• Notification;
• NGB2 form; and
• accompanying documents as prescribed in Regulation 6.

Once a determination has been made regarding the activity undertaken, the NGB will either:

• apply to the High Court for an order to declare that the winnings are forfeited to the State, where the activity is found to be illegal; or
• refund the monies won to the relevant party, where the activity is found to be legal.

The ED is tasked with amongst others, the investigation of the alleged proceeds of unlawful gambling. The investigation is informed by the process outlined in the approved unlawful winning standard operating procedure. Therefore, the ED will ensure that the targeted investigations are completed within 30 days from receipt of complete documents.

Monitoring of updates made on IGOR

Although no reference is made to an Illegal IGOR in the National Gambling Act, 2004 (Act 7 of 2004), the National Gambling Board (NGB) was instructed in the Shareholders Performance Compact signed between the Department of Trade and Industry (referred to as the dtic) and the NGB, Financial Year (FY) 2016 to develop a register of illegal operatives and blacklist them so that they are not considered in future license applications. The NGB is furthermore also tasked to combat illegal gambling, and especially online gambling in South Africa. This project has a direct bearing in fulfilling that mandate. The ED will therefore maintain the register of the detected illegal gambling activities. The ED will therefore monitor the updates made on the register and report on the detected illegal gambling activities.

Resolution of disputes and response to public enquiries

There is a rise in unresolved gambling related disputes that may cause reputational damage to the gambling industry. Through the NGB information email address, disputes are received from the public, which the division then assess and refer to the relevant agency.

The objective is to ensure prompt resolution of the disputes and provide necessary assistance to the public enquiries. The NGB will continue to maintain the disputes database and refer disputes to the relevant licensing authorities and ensure timeous response to public enquiries, with the objective to ensure that the members of the public participating in any licensed gambling activities are protected.