The COVID-19 pandemic has brought significant changes in people’s lifestyles, including an increased reliance on online entertainment. As a result, the online gambling and gaming industries have experienced a large growth in popularity, as individuals are seeking both entertainment, as well as social interactions from the safety of their homes. South Africa, like many countries, has witnessed a rise in demand for online gambling sites and licenses.
Online Gambling License Categories in South Africa
Historically, the South African regulator established various license categories to regulate different forms of gambling activities. These categories include:
Online Betting License, Online Casino License, Online Lottery License and Online Sportsbook License.
Each license category has its own set of regulations, requirements and permissions to ensure the integrity and fairness of gambling activity.
The Gambling License
To obtain a gambling license in South Africa, the basic requirements are very similar to those in other main jurisdictions, with specific considerations for the South African market. Some of the key requirements include:
- Fit and Proper Key Persons: Applicants must demonstrate that the key individuals involved in the operation of the gambling business are fit and proper, meaning they possess the necessary integrity, qualifications, and experience.
- Detailed Business Plan: A comprehensive business plan must be in place, outlining the nature of the activities, target markets, marketing strategies, and financial projections, in order to obtain the license.
- Financial Stability Checks: Applicants for the license must pass financial stability checks, to ensure they have the necessary funds to operate the gambling business, handle potential payouts to customers, and deposit around 4-6 months worth of expenses in the company bank account before submitting their application.
- Compliance with Regulatory Framework: Compliance with the average compliance and regulatory framework is crucial to obtaining a gambling license. This includes adherence to responsible gambling practices, anti-money laundering regulations, and data protection laws.
- Policies: Applicants must have relevant policies in place to address issues that may come up such as responsible gambling, customer complaints, dispute resolution, and data security.
Meeting the above requirements demonstrates a commitment to responsible gambling and ensures the protection of players’ interests and safety.
The process of obtaining a gambling license in South Africa typically takes around 3-4 months, as the local province authority committee approves your application during quarterly meetings. However, with the assistance of our firm, we can ensure that your application is processed quickly and efficiently.
Obtaining a gambling license in South Africa offers several advantages. Firstly, the local market is on an all-time rise, presenting a lucrative opportunity for operators: The online gambling market in South Africa has experienced significant growth in recent years. According to Statista, the market is estimated to reach a revenue figure of R18,850 million by 2023. In comparison to the global market, South Africa’s online gambling market is valued at US$1,009 million, with an annual growth rate of 8.20%.
Secondly, having a reputable license enhances your credibility and trustworthiness in the industry. We are already seeing major players in the industry starting to apply for thid license and adding it to their license portfolio.
Lastly, regulation opens up better payment options, allowing you to attract higher-paying clients.
In conclusion, as the online gambling industry continues to grow, obtaining a gambling license in South Africa can provide operators with a competitive edge. With the assistance of our firm, you can navigate the application process smoothly and take advantage of the rising local market, establish credibility, and access better payment options.
Porat Group has been a leading force in the global gaming industry for years. With partners and agents spanning the major capitals of Europe, Asia, and the Americas, the firm’s team of elite attorneys and agents are well-versed in the complex regulations that govern the lucrative world of online gambling and games of chance.
For more information on South Africa regulation or regulation in other jurisdictions, contact us and we would be happy to assist you throughout your process.
Written by Or Reizis, Adv.
Senior Associate – Regulation Department