Representatives of both the South African land-based casino industry and the online operator community have, so far, found little to like about South Africa’s draft online gambling proposals that have been debated this week in Cape Town but each has very different reasons for their objections.

Legislation aimed at creating an online gambling licensing regime in South Africa is scheduled to go in front of Parliament in July but, according to one expert, prospective licensees would be well advised to pay close attention to South Africa’s unique labour laws if they plan to avoid the uncertainties currently facing the country’s national lottery.

The long process of shaping new rules to regulate online gambling in South Africa is approaching its final stages, but fears that political turmoil in the country’s ruling ANC party may delay or derail the process are unfounded, according to a leading South African lawyer. But with taxes and fees still to be determined, operators may find themselves facing high costs and even higher regulatory hurdles.

With just five months to go until the 2010 Fifa World Cup, South Africa is reinforcing controls on casino gambling and sports betting. After nine years of legislative hurdles, it was thought that South Africa was close to completing a final version of the online gambling regulations but recent developments have raised doubts.

With draft legislation now laid before the South African Parliament, a Department of Trade and Industry representative has indicated that the next stage of the political process should see many of prospective licensees’ key questions answered and a regime in place before the end of the year.

The much delayed introduction of comprehensive online and mobile phone gambling legislation in South Africa may at last be a reality following Cabinet level approval in December of a Draft Gambling Amendment Bill.

Legislation that will regulate online casino gambling in South Africa for the first time was finally approved in the country’s parliament earlier this week after several months of intensive debate. The bill has been passed to President Thabo Mbeki, but is not likely to be brought into effect until next year when additional regulations on licensing, tax and enforcement have been fully formulated.

The consultation process surrounding South Africa’s controversial National Gambling Amendment Bill has moved on to address the issue of advertising of online gambling services. Responses are believed to have ranged from acceptance to a proposal for an outright ban on all gambling ads in the country.

Recent government hearings on online gambling licensing in South Africa accepted testimony from a number of sources. At least one expert warned that should South Africa, as it proposes, adopt a restrictionist policy of licensing it may be in violation of its World Trade Organisation commitments.

The concerns of provincial governments, combined with the Christmas break, have stalled the progress of South Africa’s internet gambling bill in the Upper House of the South African Parliament. Department of Trade and Industry officials nonetheless hope that the process will be reinvigorated over the coming months.