Online Casinos Taxed and Regulated in South Africa

By taking the regulatory process into its own hands, the South African government retains strong control over the Internet casino industry, unlike the ban in the U.S., which leadsto unregulated black market activity.

South Africa continues to incorporate Internet gambling with sane and sound measures designed to properly regulate the industry. On Thursday, the country's Minister of Finance, Trevor Manuel, publicized the proposed Interactive Gaming Tax Bill.

The measure suggests taxing gross gambling revenue of online casino operators. Sites doing business in South Africa would be subject to a "special tax."

The establishment of the tax was prescribed in the National Gambling Amendment Bill. This law, which passed the South African National Assembly in May, provides for strong national regulation of online gambling. By setting up strict national rules, South African legislators reinforced existing regulatory conditions and further protected consumers and children.

Although many sites are regulated by laws and agencies in the areas from which they are based, the South African rules ensure complete thoroughness in the process. The government stated strong national oversight was the best course for national gambling policy, "as opposed to it remaining in the hands of offshore jurisdictions, with little or no protection for local consumers."

By taking the regulatory process into its own hands, the South African government retains strong control over the Internet casino industry, unlike the ban in the U.S., which leads to unregulated black market activity.

The proposed tax bill will be available for comments until March 1st. It is expected to go before the Assembly for a vote shortly after the period of review and input.