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Uh Oh! Smackdown For Online Gambling?

Just when it was beginning to look the clouds were clearing and the legalization of online casino action was actually on the agenda comes word of a brand new task force. This task force is spearheaded by National Gambling Senior Manager Estelle Jonkheid of the Department of Trade and Industry.

At this point, the task force is multi-disciplinary. That is to say that the task force will be comprised of members from law enforcement agencies, gambling regulators and existing gambling license holders. According to Jonkheid, the stated purpose of this task force is to “consider strategies, interventions, and actions against the alleged unlicensed online casino operators. Interestingly, Jonkheid actually put out a few numbers that are revealing in themselves. According to Jonkheid, there are as many as 2,000 illegal online casino operators providing services to South Africans. Even more telling is the 250,000 plus South Africans that enjoy online casino action.

Although not stated explicitly, it could well be that the creation of this new task force was due in part to the conflicting viewpoint held by the Department of Trade and Industry Chief Director of Policy and Legislation, MacDonald Netshitenzhe. Netshitenzhe pulls no punches and makes his position well known. In his view, gambling is immoral. Furthermore, Netshitenzhe refuses to issue any further gambling licenses (online or landbased) due to what he sees as the negative social consequences.

Okay, so there it is. Did you spot it? As in right there in front of you? So, the Chief Director of Policy and Legislation knows what’s best for you. Well it goes without saying that at least the 250,000 plus South Africans who are allegedly enjoying online casino action may well disagree with the position of the Director.

Interestingly, it is the Department of Trade and Industry (DTI) itself that came out with the real money estimates that South Africa is turning away. According to reports from the DTI, merely imposing taxes and licensing fees on online casino action could bring in an additional R110 million each and every year. Not chump change to be sure. Actually for a government that could certainly benefit from additional revenue sources, it is surprising there isn’t more action on this front.

Perhaps Netshitenzhe and his ilk are ignoring the positive effects that regulation could have on online casino action. Not to mention the additional revenue.

Recap: so in the very same year that legalization is being tossed back and forth in Parliament, the DTI comes up with a new task force to stamp out illegal online gambling.

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