The National Gambling Bill, 2003, is hereby published for general comment.
To provide for the co-ordination of concurrent national and provincial competence over matters relating to casinos. racing. gambling and wagering. and to provide for the continued regulation of those matters; for that purpose to establish certain uniform norms and standards applicable to national and provincial regulation and licensingof certain gambling activities. andto provide for the of additional creation uniform norms and standards applying generally throughout the Republic; to continue the National Gambling Board; to establish the National Gambling Policy Council.
Part E . Licensing of persons employed in gambling indust?
Part E . License Investigations.
61 Continuation of National Gambling Board 31 62 Objects and functions of the Board 31 64 Composition of Board 33 65 Conflicting interests 34 66 Resignation.removal from office: and vacancies 34 67Meetings of the Board 35 68Committees of Board 35 69 Remuneration and allowances of members of Board and committees.
35 70 Staff of Board and remuneration.
36 72 Accountability.audit and annual report.
Chapter 5 . Enforcement and Offences 73 National inspectorate.
3774 Functions and powers of inspector 37 75 Breach of confidence.
77 Failure to answer fully or truthfully.
78 Failure to comply with Act 39 79 Offences and breach of license condition.
Chapter 6 . General Provisions 84 Regulations 40 85 Repeal of laws and transitional arrangements 40 86 Short title and commencement..............................................
Definition1 41 2 General preservation of regulations. rights. duties.
It is desirable to co-ordinate activitiesrelating to the exercise of that concurrent competence within the national and provincial spheres of government; It is desirable to establish certain uniform norms and standards applying generally throughout the Republic with regardto casinos, racing, gambling and wagering, so that: Gambling activities are effectively regulated, licensed, controlled and policed; Members of the publicwhoparticipatein any licensed gamblingactivityare protected: Society and the economy is protected against over-stimulation of the latent demand for gambling; and The licensing of gambling activities is transparent, fair and equitable.
1 (1) In this Act, the following definitions a.
money. Property. a cheque, a token, a ticket, electronic credit, credit, debit or electronic chip, or similar object; or iii any other thing.
whether or "COnStitution" means The Constitution of the Republicof south Africa, 1996 (Act NO.
is available to be played or operated upon payment of consideration; and may, as a result of playing or operating it, entitle the player or operator to a pay-off, or deliver a pay-off to the player or operator; "informal bet" meansa bet.
a gambling activity, means that a valid licence has been issued.
a gambling machine or gambling device, means that a valid licence has been issued.
a or provincial office bearer of a party.
(ij a or (iij a gambling device that the Minister, by regulation, has identified in terms of section 18; "prohibited practice" hasthe meaningassigned to that expression in the Competition Act, 1998 (Act No.
''South African Bureau of Standards means the entity of that name established in terms of section 2(1) of the Standards Act, 1993 (Act NO.
"this Act" includes the Schedules and regulations.
"may" is empowering and permissive, indicating a discretion on the part of the subject, whether or not to engage in the applicable action. bi "must" is mandatory, indicating that the subject has no discretion whether or not to engage in the applicable action. ici "may not'' is limiting, indicating a restriction or restraint on the scope of a power, function or authority, beyond which the subject hasno authority to act.
d/ "must not" is prohibiting, indicating that it is unlawful for the subject to engage in the applicable action.
Application of this Act 20 2 This Act does not apply to an activity that is regulated in terms of the Lotteries Act, 1997 (Act No. 57 of 1997).
bingo or another gambling game as described insection 5; or 30 an amusement game, to the extent that applicable provincial legislation requires such games to be licensed.
stakes, or accepts a stake of, money or anything of value on a fixed odd bet, or 35 an open bet, with a bookmaker on any contingency; or stakes. or accepts a stake of, mone:y or anything of value with one or more other persons on any contingency; or expressly or impliedlyundertakes, promises or agrees to do anything paragraph contemplatedin (a)or (b).
a system in which the total amount staked, after deductions provided for by law or by agreement, is divided among the persons who made winning bets in 45 proportion to the amount staked by each of them in respect of a winning bet; or any scheme. form or system of betting, whether mechanically operated or not, that is operated on similar principks.
it is played upon payment of any consideration, with the chance that the person playing the game might become entitled to, or receive. a pay-off, and the result may be determined by the :;killof the player or operator, the element of chance, or both.
A bet or wager. as described section in 4(1).
whether as a result of the skill of the player or operator, the application of the element of chance, or both; and regardless how the pay-off is made.
An opportunity to play a further game.
A prize given to a participatingathlete, or team of athlete's, in a sporting event, in respect of the participant's performance in that event.
converted in terms of any scherne, arrangement, system, plan or device prescribed in terms of subsection (4).
(4)The Minister, by regulation made in accordance with section 84, may declare that any scheme, arrangement, system or plan is nos an opportunity to play a further game.
maintain or operate any premises, whether or not they are licensed premises, for the purposes of a gambling activity contemplated in paragraph (a);or permit any premises undertheperson'scontrol, whether or not they are licensedpremises. to be used for the purposes of a gambling activity contemplated in paragraph (a).
A contravention of this section is an offence.
c an informal bet, unless, in the circumstances, there are reasonable grounds to conclude that any of the parties to the bet intended to establish an enforceable contractual relationship when they, staked, or accepted the stakeof, money on that contingency?
9 (1) Notwithstanding any provision to the contrary contained in any other law, a person must not- (a! import, manufacture, supply, sell, lease, make available, possess, maintain or alter a gambling device; or make available a prescribed gambling device for use in a gambling activity unless that person is authorised to do so in terms of this Act or applicable provincial legislation.
maintain or operate any premises for the purposes of a restricted gambling activity unless that gambling activity in, on or from those premises has been authorized in terms of alicence.
bi permit any premises under that person's control to be used for the purposes of a restricted gambling activityunless that gambling activity in, on or from those premises has been authorized in terms of a licence under this Act or applicable provincial legislation; or pennit an individualin oron anypremisesunderthatperson'scontrol to engage in a restricted gambling activity, unless that gambling activity in, on or from those premises has been authorized in terms of a licence under this Act or applicable legislation.
11 (1) A person must not engage in or make available an interactive game except as authorised in terms of this Act or any other legislation.
12 (1)For the purposes of this section, 'minor'means a person who has not attained the age of 18 years.
(i)gainaccess to adesignatedareawithinlicensed premises, or to a prescribed gambling device; or engage in. conduct or make available a restricted gambling activity.
gain access to a designated area within licensed premises. or to a prescribed gambling device: or engage in, conduct or make available a restricted gambling activity.
bj operate that prescribed gambling device; or premises; or within those premises.
(5)A contravention of this section is an offence.
13 (1)A route operator, site operator, independent site operatoror bingo operator must not extend credit, in the name of the licensee or a third party, to any person for the purpose of gambling.
Acontravention of this section is a breach of a licencecondition, subject to administrative sanctions in terms of this Act or the applicable provinciallegislation.
in a false or misleading manner; or that is unlawful in terms of this Act or applicable provincial legislation; or a gambling activity, other than an annusement game, in a manner intended to target or attract minors.
16 (1)The Minister, by regulation made in accordance with section84, may prescribe minimum standards for the design, use, and maintenance of premises that are, or are intended to be, licensed premises.
(2)A person licensed to engage in. conduct, or make available licensed activitiesin on or from particular licensed premises must cornply with prescribed standards for the design, use and maintenance of those premises.
license a personas a site operator, to operate limited payout machines in or on specific named premises; and determine the hours of operation for that site, which may be the same as, differentfrom, or outsidethenormalhours of operation of the primary business conducted at that site.
The operation of limited payout machines must be incidental to, and not be, the primary business conducted in any premises licensed as a site, if that site falls within an 'incidentaluse'categorydeterminedby the Minister, interms of section 26 (l)(b).
(3)A site operatormay be linked to a particular route operator, or may be independent, if provided for in terms of applicable provincial legislation.
keep limited payout machines own'cd by the route operator on the site; and make those machinesavailable to be played by members of the public.
a route operator in terms of section 26; and a site operator in terms of subsection (4).
Only a juristic person may be licensed to own and operate morethan five limited payout as an independent site operator.
18 (1)Everygamblingmachine is a prescribed gamblingdevice, which must be registered, and certified in accordance with this Act.
The Minister. by regulation made in accordance with section84, may prescribe the categories of other gambling devices that must be registered in accordance with this Act.
19 (1) A manufacturer must keep a record, in the manner and form required by or in terms of provinciallegislation, of every prescribed gambling devicethat the manufacturer acquires, manufactures, sells or otherwise distributes.
A manufacturer of a gambling machine manufactured in, or imported into, the Republic must permanently affix an identification badge to the exterior of that machine.
ai include the name of the manufacturer or importer, a unique serial number, and the date of manufacture or importation; and be affixed in a location on the machine that allows it to be easily read after installation.
A person must not remove, alter, disfigure, obscure or destroy an identification badge affixed to a gambling machine in terms of this section.
bj the device is registered to the holder of an appropriate licence.
A contravention of subsection (l), (2),(3) or (4) is an offence.
ai establish and maintain, in the prescribed manner and form.
(ii)any other person who has leased that device, or to whom registered possession of the device has been transferred; and must provide the information in its registry under this section to the board in the prescribed manner and form.
If a gambling machine is networked with other machines or systems of machines, eachmachine in that network is deemed to be a separategambling machine for the purpose of this Act.
The Board must establish and maintain, in the prescribed manner and form, a registry of all data collectedbythe several provincial licensingauthorities, and communicated to it in terms of this section.
attach to that device a labelinthe prescribed form, bearing the unique registration number for that device, as assigned by a provincial licensing authority: and notify the provincial licensing authority in the prescribed manner and form, identifying the device that bears that registration number.
A person must not remove, alter, disfigure, obscure or destroy aregistration number attached to a prescribed gambling device.
The person who attaches, or causes to be attached, a registrationnumber in accordance with subsection (l),is deemed to be the registered owner of that device, subject to any transfer of registered ownership in terms of this Part.
22 (1) A person who proposes to transfer registeredownership of a prescribed gambling device to another person must apply to a provincial licensing authority in the prescribedmannerand form for a certificate of authorization to transfer registered ownership of that device.
Subject to subsection (3) and (4), a personwhoproposes to lease, or transfer possession of, a prescribed gambling device to another person must applyto a provincial licensing authority in the prescribed manner and form for a certificate of authorization to lease or transfer possession of that device.
is not required to apply for a certificate of authorization in terms of this section, but must notify the licensing authority who approved the leaseor transfer of possession that the device has been re-possessed.
performing essential maintenance work on, or repairing, the device.
ib for a transfer to a person who has a national licence, must be made to the provincial licensing authority of the province in which the proposed transferee intends to locate or use that device.
is otherwise authorised to possess that category of device, in terms of a provincial licence, or applicable provincial legislation.
approved a lease or a transfer of registered ownership, or possession, of a prescribed gambling device; or been notified of the repossession of a device by a registered owner.
23 (1) A contravention or failure to complywith section 21 (1), (2), (4), or section 22 (I), (2),or (3)(b)is an offence.
dj is able to conduct tests and analysis in an objective and impartial manner; and satisfies any other set out in this Act.
jd if thedevicecomplies with the applicable standard, issuealetter of certification in respect of the device..
(2)A contravention of this section is a breach of licence. subject to administrative sanctions in terms of this Act. or applicable provincial legislation.
Ciii at any one site.
(vii)minimuminformation tobe provided by licensees concerning the sourcing, distribution. movements, conversions and disposal of limited payout machines.
Provincial licensing authorities, when establishing evaluation criteria for granting licences with respect to the use of limited payout machines, must endeavour to promote wide geographic spread of site operators and independent site operators.
if applicable, to ensure that this form of entertainment is accessible to a wide range of the population.
distribute a limitedpayoutmachine to a siteoperator or independent site operator, or allow such a machine to be made available for play, unless that machine has been registered in accordance with this Part; or movealimitedpayoutmachine fromone site to another withouttheprior approval of. and subject to monitoring and control by, the provincial licensing authority that registered that machine.
more limited payout machines than the maximum number for which the operator is licensed; or more limited payout machinesthantherelevantsite is licensed to accommodate.
must maintain the limited payout machines owned and operated by that route operator; and must collect money from those machines and pay any applicable provincial taxes or levies in respect of those machines.
(5J Acontravention of subsection (3)or (4) is an offence.
The Minister, in consultation with the Council, and by regulation made in accordance with section 84.
(5)A contravention of subsection (4) is a breach of licence, subject to administrative sanctions in terms of this Act or the applicable legislation.
valid (a) national employment licence; or ib) provincial employment licence issued by the provincial licensing authority in the province in which the person proposes to work.
(3)An employer of a person who is licensed as required by this section must disclose to the applicable licensing authority within the prescribed time, any prescribed information that concerns a licensed employee or agent of the employer.
A of this is an offence.
29 (1) A licensing authority may not license a person in terms of this Part if that person falls within any of the enumerated disqualifications set out in section 53 (1).
(7)A licence granted. and the licence certificate issued. to a person in terms of this section is not transferable to another person.
30 The Minister, by regulation made in accordance with section 84, may determine any specific category of work to be subject to the requirements of section 28.
impose on licensees administrative sanctions in accordance with this Act or legislation;provincialapplicable and issue offence notices in respect of offences in terms of this Act or applicable provincial legislation.
monitor the functions of each gamblingmachine that is required tobe connected to a central electronic monitoring system in terms of section 27.; and ensurecompliancewith, conductinvestigations, and issue offence notices under the FinancialIntelligenceCentreActin so far as it applies to the gambling industry.
that each prescribed gambling device being used, or made available for use, by a licensee is registered and certified in terms of this Act; and complete and timely collection and remittance of taxes, levies and fees.
in or on which any activity takes place that is permitted in terms of -/ai a provinciallicenceissued licensing by that authority: (bb)applicable provincial law, without being licensed; or (cci a national licence.
a national licence. to the extent that the licensee is operating within that province.
ii) provincial licence issued by that licensing authority; or nationallicence, -(aa)for a cause arising within that province; or (bb)otherwise, as set out in section 45(l)ja) and (b).
33 In accordance with this Act, and subjectto the direction of the Council as provided for in Chapter 4. the Board may exercise the powers and perform the functions assigned to it in this Act.
conduct oversight evaluations of the performance of provincial licensing authorities, in the manner provided for in section 35, to the extent required to ensure that the national normsandstandardsestablished by this Actare applied uniformly and consistently within the Republic; and assist provincial licensingauthorities toenswe that unlicensed gLvbling activities are detected, in the manner provided for in section 63 (2) and (3).
35 (1) The Board must ensure that its functions, and those of the Chief Executive Officer. set out in this section are, in so far a possible, exercised in a manner consistent with the requirements of section 41(l)(e), (8) and jh) of the Constitution.
The Board may direct the ChiefExecutive Officer to carryout an oversight evaluation of the exercise by a provincial licensing authority of its responsibilities and function in terms of this .4ct.
a direction ziven by the Board; and generally, the scope and methodology of the proposed evaluation.
(5)If, as a result of an evaluation conducted in terms of subsection Q), the Chief Executi1.
ai may issue a deficiency repor to the provincial licensing authority setting out any matters in 1-espect of which the authority has faiied to comply with any provision of this Act: and ibi must at the same time invite the provincial licensing authority to propose a basisfor an azreement in terms of which it would bring the exercise of its functions into compliance with all applicable provisions of this 4ct?
If an agreement is reached between the provincial licensing authority and the Board. as contemplated in subsection (5)ib).the Chief Executive Officer must monitor progress achieved in terms of the agreement.
report to the Board at prescribed on that progress: and intervals issue a furiher deficiency report. and invitation. as contemplated in subsection (5).if the provincial licensing authority significantly fails to meet any of its commitments in terms of the a, ureernent.
(7)A provincial licensing authority may request the Board to set aside all or part of a deficiency report issued by the Chief Executive Officer in terms of subsection (5) or (6).
If a provincial licensing authority does not respond to a deficiency report issued by the Chief Executive Officer in terms of subsection (5) or (6), or if the provincial licensingauthority and the Board fail to reach an agreement contemplated in either subsection, or if the provincial licensing authority is persistently in default in terms of such an agreement, the Board may refer the matter to the Council for consideration in terms of section 66(2)(cJ.
A register of each person who is known tc hold more than 5% of the total financial interest.
dl A register of each prescribed gambling device registered by it.
Each provincial licensing authority must report to the Board, at the prescribed intervals, the information kept by that licensing authority in terms of subsection (I).
(3)The Board must make available to a provincial licensing authority, upon request, any information reported to the Board in terms of subsection (2).
(4)A regulatory authority must, on request from another regulatory authority, provide a copy of all prescri'oed infcrmation in its possession concerning a licensee, re,' elstrant or applicant for a license.
The Minister. by regulation in accordance withsection 84, mayprescribethe timing, manner and form, and content of information to be provided in terms of this section.
37 (I) As contemplated in section 41(2) of the Constitution, the Council may facilitate the settlement of any dispute between the Board, and one or more provincial licensing authorities. ccncerning the functions to be performed by them relatingto casinos, racing, gambling and wagering.
3s (1) After consulting the Council, and following the other procedures set out in section 84.
the control and restriction of bingo or any similar game.
the nature and manner of the auditing of the businesses of licensees and the documents and records which they must keep and submit to the relevant licensing authority; and the types, minimum standards and qualities of gambling equipment that may be used by any licensee.
conditions that may be attached to a licence, in terms of section 50(3);and conditions and requirements for the transfer of a licence, or an interest in a licence.
The Minister, in accordance with section 84, may make regulations in respect of the exercise by the Board of its monitoring, investigative and evaluation functions in terms of sections 34 and 35.
39 (1) A national licence issued in terms of this Act is valid throughout the Republic and authorizes the licensee to conduct, engage in, or make availablethelicensed acti\.ities at any place within the Republic.
this .4ct: and the Financial Intelligence Centre Act; and ic applicable pro~~incial lezislation within any province in which the licensee conducts. en, nazes in. or makes available the licensed activities.
to operate as a Horse Racing Authority; or ic to develop. operate and maintain, on behalf of the Board, a national electronic monitoring system as contemplated in section 27.
a licence as a manufacturer, supplier or maintenance provider; or ib to work within the gambling industry.
The applicant's principle place of business is or will be located, in any other case.
41 Aprovincial licensing authority may issue a national licence to an applicant who meets the requirements of this Act.
conduct the investigations prescribed by thisAct with respect to probity, matters: and conduct any prescribed hearings or otherproceedingswithrespect to the application.
(3)A provincial licensing authority that has received a notice in terms of subsection (2)(b)may request the Chief Executive Officer to conduct an oversight evaluation. as contemplated in section 44.
43 An applicant who has been refused a licence in terms of section 42(2)(ajmay request a review of that decisjon by the High Court.
must direct an inspector to conduct an oversight evaluation of the application, authority, if two or more provincial licensing authorities have so requested in terms of section 42(3); or in any other case, may direct an inspector to conduct such an oversight evaluation, if there are a reasonable grounds to believe that the requirements of this Act have not been satisfied.
(2)If direction is given for an oversight evaluation. the Chief Executive Officer must issue a notice of intent to evaluate the proposed licence. in the prescribed form.
ii requesting the provincial licensing authority to consider the application afresh: and setting out any matters in respect of which the authority failed to comply with national norms and standards for consideration of the application.
has not issued a notice of intent to evaluate, or a notice in terms of subsection (2). within 20 business days after receiving notice of the proposed licence; or issues a notice in terms of subsection (2)(a).
issue the licence withthealteredconditions as requested by the Chief Executive Officer; or request the Board to set aside the request of the Chief Executive Officer, and permitissuance saf the as initially proposed.
bj request the Boardto set aside the deficiency report, and permit the issuance of licence the as initially proposed.
set aside all or part of the request, or the deficiency report; or permit the issuance of the with conditions.
45 (1)A provincial licensing authority, with the prior concurrence of the Board, may suspend or revoke a national licence, as if that licence were a provincial licence issued by that licensing authority.
A provincial licensing authority must immediately advise each other provincial licensing of a or revocation of a licence.
46 (1) When considering an application for a provincial licence, or a national I'lcence. a provincial licensing authority must comply with the licensing standards set out in this Act.
(2)It is a condition of every provincial licence that the licensee must comply with every applicable provision of this Act.
48 (1) Subject to subsection (2j, only a company registeredin terms of the Companies Act. 1973 (ActNO.61 of 1973), or a Close Corporation registered in terms ofthe Close Corporations Act. 1984 (Act No.
fi under any other catcgory of license, to the extent that applicable provincial legislation so requires.
amusement machines, subject to the requirements of subsection (2); and amusement games, subject to the requirements of subsection (3) and any regulations promulgated in terms of subsection (4).
An amusement machine must not be derived from, or converted from a gambling machine of the type ordinarily found in a casino.
be similar to. or derived from. a gambling game other than bingo; bj offer a cash prize, or a combination of a cash prize with any other prize; or offer a prize that exceeds theprescribed maximum value for such games.
(4)The Minister. by regulation made in accordance with section76, may prescribe the maximum value of the prize, and the type of prizes, that may be offered for an amusement game.
50 (1) A national licence 0.
the activities that the licencepermitsthelicensee to engage in, conduct or make available to the public; and otherthan an employment licence. the premises at, in or from which, the licensee is permitted to operate.
a permanent licence.
(dl subject to subsection (3), a special event licence, which permits the licensed activity on specified dates only, in a particularlocation, asset out in the licence.
A special event licence maynot be issued in respect of the operation of a casino or a gambling machine.
A provincial licensing authority issuing a national licence must issue a licence certificate in the prescribed form to the licensee.
the name or description of the specific premises in, on or from which the licensed activity may take place, unless it is an employment licence.
The Minister, by regulation made in accordance with section 84, may prescribe a maximum duration of no more than 20 years for a permanent licence, and for that purpose may prescribe different maximum durations for different categoriesof licence.
51 (1) Whenconsidering an application foralicence, other than an employment licence. or when considering an application forthetransfer of an interest in such a licence.
provincial or within the Republic, in the case of a national licence.
For the purpose of'sutlsection (1) -(trj "Market power" has; he meaning bet out in section 1 of the Competition Act. 1998 (Act NO.
ib) "public interest reasons" include the reasons set out in section 12A (3) of the Competition1998 (A4ctNo.
who has direct or indirect control over the applicant.
who is direcrly or indirectly controlled by a personreferred to in sub-paragraphs (i) or (ii).
information the ownership of the premises proposed to be used for the licensed activities, and the relationship between the applicant and the owner of those premises.
A licensing authority-.
the proposed activity would be inconsistent with this Act or applicable provincial legislation; or the use of the proposedpremises for the proposed activitywouldbe contrary to existing zoning laws or rights; and may refuse to issue: a licence if the provincial licensing authority considers that the proposed: site is an unsuitable location for the proposed activity, having regard to thj s Act, and applicable provincial legislation.
is disqualified from holding an interest in a licence, licensee, licensed premises, or the business to which a licence relates, in terms of section 53(1). or applicable provincial legislation; or may hold only a restricted interest in a licence, licensee, licensed premises, or the business to which a licence relates, in terms of section 53(2),or applicable provincial legislation.
a family member of a person who is a member of that licensing authority; or disqualified from holding an interest in a licence, licensee, or the business to which a licence relates, in terms of section 53(1).
is the actual or beneficial owner of the premises used for the licensed activity, or a manager of the business concerned, the licensing authority may impose reasonableconditions on the continuation of the licence with the object of ensuring continuing compliance with the principles of this section.
(6)A person who acquires. [or proposes to acquire or transfer,] more than 5% of the total financial interest in a licence, licensee, or the business to which a licence relates mu.si applb- to the rele\-a!~t provincial licensing authority fcr consent to that acquisition 01 transfer.
A provincial licensing authority must not consent to the transfer of an interest in a licence, licensee, or the business to which a licence relates if, after conducting the prescribed investigations.
a person who is disqualified, in terms of section 53(1) or relevant provincial legislation. would directly or indirectly hold more than 5% of the total financial interest in rhe licensee or the business to which the licence relates: or a person would hold a greater interest in that licence, licensee, or the business to which a licence relates than pernlitted in terms of section 53(2)or relevant provincial legislation.
has been convicted in theRepublic or elsewhere of theft, fraud, forgery or utteringaforgeddocument, perjury, an offence undertheCorruptionAct, 1992 (Act No 94.
is not a fit and proper person to be involved in the business concerned; or is a political office bearer.
apublic servant; or age the (c) under of 18: years.
If a person mentioned in section 52(4), or a person who holds an interest in a licence, licensee or the busines:; to which a licence relates, becomes disqualified in terms of subsection (1) after the licexe was issued, that person must dispose of that interest within areasonableperiod 0-f not morethan 3 years, determinedbythelicensing authority after considering circumstances.
54 (I) In this section-- (ai "financial interest" does not include the right to asses5 or collect a tax. levy or fee: and (bj "public body" means the state. an organ of state, or any organisation in which the state has a financial interest.
ai gambling licence. gambling activity or premises used for a gambling activity: or person who directly or indirectly. holds a gamblinglicence, operatesa gambling activity. or owns or occupies premises used for a gambling activity.
in the proxim.ity of premises used for a gambling activity; or intended to provide socio-economic, infrastructure. or othersupport necessary for, or ancillary to, such premises or gambling activities: or directly or indirectly hold an interest created or acquiredin the course of giving effect to an acceptable arrangement contemplated in paragraph bj.
it is an arms-length commercial transaction; and any payment in tenns of the arrangement to the public body is not directly or indirectly determined by reference to the turnover of, or profit from, the gambling activity.
(5)An arrangement referred to in subsection(3)(b)or (c)is acceptable if any payment in terms of the arrangement to the public body is not directly or indirectly determined by reference to the turnover of, or profit from, the gambling activity.
55 (I) Whenconsidering an applicationforalicence, an application for an employment licence, or a request to transfer an interest in a licence, licensee, licensed premises.
the National Director of Public Prosecutions; or Service.
(2)A report requested in lerms of subsection (l), mayincludeparticulars of any convictions recordedagainst a person, to the extent that those particulars are relevant for the purpose of determining whether that person is disqualified from holding an interest in a licence. licensee. licensed premises, or the business to which a licence relates, in terms of this Act or applicable provincial legislation.
57 (1) A licensee may surender a license by written notice given to the provincial licensing authority that issued the license.
3 months after the notice is given, or on a date stated in 1:he notice.
58 (1) The National Gambling Policy Council is hereby established.
the Minister; and iii from each province.
The Minister is the Chairperson of the Council.
f other matters that mzy be referred to it by a member of the Council.
may refer any matterwithin its authority to the Board or any provincial licensing authority.
may make a finding that a provincial licensing authority has failed to comply with this Act. and if it does so. may direct that provincial licensing authority to enter into an agr'5ement with the Board respecting the steps to be taken by the provincial licensing authority to bring its procedures into compliance with this Act.
60 (1) The Minister may convene a meeting of the Council at any time, but must convene at least two meeting:; in each financial year.
(2)The Minister may designate any meeting of the Council to be a meeting of all members. or only of regular members, but must designate at least one meeting in each financial year to be a meeting of all members.
(3)At a meeting of the Council to whichsupplementarymembers are called a supplementary member may be represented by an alternate, chosen by that supplemen- tary member from among the other board members of the applicableregulatory authority.
(4)As a body through which the national and provincial spheres of government seek to co-operate with one another in mutual trust and in good faith, theCouncilmust attempt to reach its decisions by consensus.
(5)If the Council is unable: oreach a consensual decision in any matter before it, the Council may the matter by formal on a motion.
bj at least 5 of the other regular members of the Council.
Subject to subsection (2) through (6), the Council may establish Rules of its for Procedure own proceedings.
61 (1j The National Gambling Board, as established by the National Gambling Act, 1996 (Act No. 33 of 1996) is continued under this Act, subject to Item 4 of Schedule 1.
The Board is a juristic person.
bJ advise the Councj.1 on matters of national policyrelating to casinos. racing.
dl monitorsocio-economicpatterns of gambling activity within the Republic, and in particular identify factors relating to, and patterns, causes, and consequences of.
(f, monitor market share and market conduct in the gambling industry and refer any concerns regarding market share or possible prohibited practices to the Competition Commission, in terms of the Competition Act, 1998 (Act 89 of 1998).
The Board may liaise with any foreign or international authoritieshaving any objects similar to the objects of the Board.
must comply with directions issued to it by the Council relating to casinos, racing.
may have regard to international developments in the field of casinos, racing, gambling and wagering; and may consult any person, organisation or institution with regard to any matter deemed necessary by the Board.
(i)engage with that authority in staff exchanges orsecondments;or provide technical assistance or expertise to that authority.
At the request of the applicable provincial legislature, Executive Council member of the executive Council or provincial licensing authority, the Board may engage with that authority in co-operative activities to detect and suppress illegal gambling activities if there arereasonablegrounds to believethoseactivitiesmay beoccurring across provincial boundaries.
across provincial boundaries; or entirely within a particularprovince, if, in the opinion of the Council, the provincial licensing authority is unable to suppress that activity on its own.
The Board may liaise wth prcvincial licensing authorities on matters of common interest.
5j The Board may request any provincial licensing authority to submit any report or information related to the activities of that licensing authority to the Board.
the following members.
Minister of Safety and Security; and to serve until substituted by the ministerwho designated the member.
the person does not have any interests referred to in subsection (3)(b).
Corruption Act, 1992 (Act No. 94 of 1992), an offence under Chapter 2 or 3 of the Prevention of Organised Crime Act, 1998 (Act 121of 1998), an offence dishonesty; or has been convicted of any other offence committed after the Constitution of the Republic of South Africa, 1993 (Act No. 200 of 1993), took effect, and sentenced to imprisonment without the optionof a fine.
The Chief Executive Oflicer is an ex officio member of the Board, but may not vote at meetings of the Board.
indirect interest held in the in that form of units of a unit trust if the person contemplated subsection has no control over the investment decisions of that Unit but.
65 (1j A member of the Hoard must promptly inform the Minister in writing after acquiring an interest that is. or is likely to become, an interest contemplated in section 64(4)(b).
make private use of, or profit from, any confidential information obtained as a result of perfomng that person's functions as a member of the Board; or divulge any information referred to in paragraph(d)to any third party, except as required as part of that person's official functions as a member of the Board.
A disclosure by a member in terms of subsection (3)(a),and the decision by the Board in terms of subsection (3)(b), must be expressly recorded in the minutes of the meeting at which the disclosure is made.
less than one month written notice, with the concurrence of the Minister.
Before removing a person from office in terms of subsection (2),the Minister must afford the person an opportunity tostateacaseindefence of their position.
Upon the expiryof an appointed member's first term of office, the member may be re-appointed to a further term, subject to section 64.
(5)A person may not be appointed to serve for more than two terms asa member of the Board.
67 (1)The chairperson may determine the date, time and place for the first meeting of the Board, and the chairperson in consultation with the Board may determine the date, time and place for each subsequent meeting.
The chirperson in 'consultation with the Boardmay determine procedure at meetings of the Board, after due consideration of the principles of openness and transparency.
(3)A majority of the members of the Board is a quorum for a meeting of the Board.
(4)The Board must attempt to reach its decisions by consensus.
(5)If the Board is unable to reach a consensual decision in any matter before it, the Board may resolve the matter by simple majority vote on a motion.
Subject to subsection (4) and (5), the Board may establish rules for its own proceedings.
(7)A decision taken at a meeting of the Board, or an act performed under the authority of such a decision, is valid despite -la) a vacancy on the Board at the time the decision was taken, or jb) the fact thata person who was not a member sat asa member at the time when the decision was taken.
68 (1) The Board may frorn time to time appoint one or more committees to perform any functions and exercise any powers delegated to it by the Board.
A committee may comprise only persons who are members of the Board, except to the extent required to comply with the Public Finance Management Act, 1999 (Act No. 1 of 1999).
must designate which member will chair the committee; and may issue directives to the committee, but any such directives mustbe consistent with this Act.
A decision of a committee taken in the performance or exercise of a function or power delegated to it, isa decision of the Board, subject to ratification by the Board.
69 (1)The Minister, with the concurrence of the Minister of Finance, may determine the remuneration and allowances of any member of the Board, or of a committee, who is not in the full-time service of the State.
(2j The remuneration and allowances of the persons referred to in subsection (1) may differ according to the different offices held by them or the different functions performed by them.
Section64(3) and (4), andsection 65.
The Board, in consultation with the Minister, may determine the remuneration, allowances. employment benefits and other terms and conditions of appointment of a person appointed in terms of subsection (1).
Subject to the provisions of the Public Finance Management Act, 1999 (Act No. 1of 1999), the Board may delegate to any member of the staff any function or power that the Board may perform or exercise in terms of this Act, either generally or specially.
(ci income derived by the Board fromitsinvestmentanddeposit of surplus money in terms of subsection (6); and other money accruing to the Board from any source.
Minister a statement of the Board's estimated income and expenditure, and requested appropriation from Parliament, in respect of the next ensuing financial year.
(5)Cheques drawn on the account of the Board must be signed on its behalf by two persons authorised for that purpose by resolution of the Board.
in an investment account with the Corporation for Public Deposits established in terms of section 2: of the Corporation for Public Deposits Act, 1984 (Act No. 46 of 1984).
account for State and other money received or paid for or on account of the Board; and causethenecessaryaccounting and related records to be kept, in accordance with the Public Finance Management Act, 1999 (ActNo. 1 of 1999).
The Board must report to the Minister at least once every year on its activities.
transmit a copy of the report to the Premier of each Province; and table it in Parliament.
that the inspector has been appointed under this Act; and any limitation on the authority of that inspector.
An inspector performing a function under this Act must show their certificate of appointment to any affected person who demands it.
For the purposes this Act or any other national or provincial legislation or any regulations promulgated under such legislation in respect of gambling and associated activities, an inspector is deemed to have been appointed a peace officer for purposes of sections 40,41,44,45,46,47.48,49 and 50 of the Criminal Procedure Act, 1977 (Act 51 of 1977).
74 (1) An inspector may attendat the offices of any provincial licensing authority for the purpose of carrying out any activity contemplated in section34 or 35.
seize and remove from those premises, and impound, -(aa)any such equipment or supplies for the purposes of examination and inspection; or ibb) any book.
Whenperformingafunction in terms of subsection (2), aninspectormaybe accompanied and assisted by an assistant, interpreter or a police officer.
An inspector may request and receive information, materials and any other data from any licensee, or applicant fora licence or registration under this Act, subjectto the provisions of the Promotionof Access to Information Act.
in carrying out any function in terms of this Act; or as a result of making anapplication, orparticipating in any proceedings in terms of this Act.
76 It is an offence to hinder, oppose, obstruct or unduly influence any person who is exercising a power or performing a duty delegated, conferred or imposed on that person by this Act.
subject to subsection(2),fails to answer any question fully and to the best of that person's ability: or givesfalseevidence, or believing to be knowing it false.
A person questioned by, an inspector in terms of this Act is not obliged to answer any question if the answer is self-incriminating.
No self-incriminating answer given or statement made to a person exercising any power in terms of this Act is admissible, as evidence against the person who gave the answerormadethestatement, inany criminalproceedings, except in criminal proceedings for perjury orin which that person is tried for a an offence contemplated in this section, and then onlyto the extent that the answeror statement is relevant to prove the offence charged.
fi refuses or fails to comply to the best of their ability with any request of an inspector under section 74.
79 (1) If a person appears to have committed an offence under this Act in circumstances that are also a substantially similar offence under applicable provincial legislation, the relevant provincial licensing authority may prosecute that person for the offence under this Act, or tlhe substantially similar offence under the applicable provincial legislation, but not both.
The commission of an offence under this Act by a licensee is a breach of a condition of the licence.
80 (1) Any person convicted of an offence in terms of this Act, is liable toa fine not exceeding R 500 000,or to imprisonment for a period not exceeding 10years, or to both a fine and imprisonment.
An administrative penalty for breach of condition of a national licence may not exceed.
81 Despite anything to the contrary contained in any other law, a Magistrate's Court has jurisdiction to impose any penalty for an offence in terms of this Act.
83 I j In any criminal proceedings in terms of this Act, if it is proved that a false statement, entry or record or false information appears in or on a book, document, plan, drawing or computer storage medium, in the absence of evidence to the contrary, the person who kept that item may be presumed to have made the statement, entry, record or information.
A statement, entry or record, or information, in or on any book, document, plan, drawing or computer storage medium is admissible in evidence as an admission of the facts in or on it by the person who appears to have made, entered, recorded or stored it unless there is evidence to the contrary that the person did not make, enter, record or store it.
(ii)thedetermination of norms and standards thatwillapplygenerally throughout the Republic relating to any matter in terms of this Act.
(i)consult the Council, and publish the proposed regulations for comment; and may the Board and provincial authorities.
the Gambling 1996 No.
National Act, (Act the Gambling Matters Amendment Act, 1999 (Act No. 36 of 1999); and the National Gambling Amendment Act, 1999 (Act No. 39 of 1999).
section 19 of the National Gambling Act, 1996 (Act No.
section 2 of the Gambling MattersAmendmentAct,1999(Act No. 36 of 1999) survives as if that section were a provision of this Act.
The repeal of the laws specified in this section does not affect the transitional arrangements, which are set out in Schedule 1.
86 (1) This Act is called the National Gambling Act, 2003, and comes into operation on a date fixed by the President by proclamation in the Gazette.
The President may set dl.fferent dates for different provisions of this Act to come into operation.
(3)Unless the context otherwise indicates. a reference in a section of this Act to a time when this Act came into operation must be construed as a reference to the time when that section came into operation.
1 (1) In this Schedule -"effective date" means the date on which this Act, or any relevant provision of it, came into operation in terms of section 36. "previous Act" means the National Gambling Act, 1996 (Act No. 33 of 1996).
the previous Act, if the number is followed by the words "of the previous Act"; or this Act, in any other case.
to an item or a sub-item by number is a reference to the corresponding item or sub-item of this Schedule.
2 (1) Despite the repeal of the previous Act, Regulation No.
Regulations 4, 8, 10. 11, 12, 16, 28, 29, 39, 40, 41(1), 42, 62, 63 and 64 are repealed.
A licence that had been issued in terms of applicable provincial legislation by a provincial licensing authority for an indefinite term, and inforce immediately before the effective date, has a duration, as from the effective date, of the period determined by regulation for that category of licence.
Any other right or entitlement enjoyed by, or obligation imposed on, any person in terms of any provision of the previousAct, that had notbeen spent or fulfilled immediatelybeforethe effec1:ive date mustbeconsidered to bea valid right or entitlementof, or obligation imposed on, that person in terms of any comparable provision of this Act, as from th.edate that the right, entitlement or obligation first arose, subject to the provisions of this Act.
A notice given by any person to another person in terms of any provision of the previous Act must be considered as notice given in terms of any comparable provision of this Act. as from the date that the notice was given under the previous Act.
(5)A document that, before the effective date, had been served in accordance with the previous Act must be regarded as having been satisfactorily served for the purposes of this Act.
An order given by an insFlector, in terms of any provision of the previous Act, and in effect immediately before -the effective date, continues in effect, subject to the provisions of this Act.
inthecase of an entity referred to in sub-item (2)(a),only after a date determined by the Minister by notice in the Gazette; or upon the coming into force of this Act, in any other case.
any company orcorporationintowhichany of those entities listed in paragraphs (i) -(iii) may have been converted; or any organ OF state or organization with which the state is concerned to which an entity referred to in paragraphs (i) -(iv) has transferred an interest in gambling activity; and anylegaldisabilitysuch as provisionaljudicialmanagement, judicial management or any formof winding-up as provided for in the Companies Act, 1973 (Act No. 61 of 1973), or in any other law, of any entity contemplated in paragraph (a).
4 (1) A person who was a member of the Board immediately before the effective date ceases to be a member of the Board upon the coming into operation of this Act, unless that person is entitled to be a memberof the Board in terms of section 64 of this Act.
Apersonwhoheld an appointmentas an inspector underthepreviousAct immediately before the effective date is an inspector in terms of this Act as of the effective date, subject to further direction of the Board.
(3)Aninspector'scertificateissuedinterms of thepreviousAct and valid immediately before the e:f€ective date, continuestobevalidas a certificate of appointment as an inspector, as if it had been issued in terms of this Act, until it expires or is cancelled by the Board.
5 (1) A person who, immediately before the effective date, held a licence of a type that, in termsof this Act, is required to be issued as a national licence, may apply to the provincial licensing authority that issued the licence for conversion of that licence, and the provincial licensing authority must issue a national licence in substitution for the former licence, on substantially similar terms and conditions.
Chapter 1 seis out the definitions and application provisions. Chapter 2, Part Aintroduces a number of new provisions, whichestablishwhat activities are gambling activities and thus fall within the ambit of the Bill, what activities constitute bets and wagers, and what activities constitute gambling games. Although the formulations in Part A are new, the provisions continuethepolicy of the National Gambling Act, 1996, which includeda complex series of definitions to achieve a similar effect.
Part B of Chapter 2 introduces new provisions, which give effect to a new policy of making unlicensed gambling activities unlawful on a uniform basis nationally. Section 7 goes beyond that, to introduce for the first time a prohibition against gambling on contingencies that are related to unlawful act or events. Section 11 prohibits interactive gaming, i.e. gambling over the internet, exceptas authorised in terms of this Act or other legislation. No such legislation presently exists in the Republic, and this Bill does not include any such provisions. Department of Trade and Industry anticipates preparing such legislation in consultation with the National Gambling Board and the provincial regulatory bodies, once all regdators have had sufficient time to properly studythe policy issues and precedents i'or regulation. Section15advances the policy of the National Gambling Act, 1996 on the matter of enforceability of gambling debts. Under the existing Act, such a debt is legally enforceable if it is incurred in the course of a gambling activity regulated by, and not in conflict with, any law. Section 15will change that so that any debt incurred inthecourse of licensed gamblingwillbelegally enforceable, debts incurred in the course of lawful gambling that does not have to be licensed, will be legally enforceable to the extent that common law or other legislation provides, and debt incurred in the course of unlawful gambling will not be enforceable at all.
Part C of Chapter 2 concerns policy respecting the regulation of gambling premises. The provisions of this part re-enact certain existing regulations promulgated under the National Gambling Act, 1996.
Part D of Chapter 2 concerns the registration, licensing and certification of gambling machines. Section 18 establishes a new national requirement for all manufacturers and importers of gambling machines and devices to keep registered records of the devices that they acquire, manufacture, :;ell or distribute, and to affix a unique registration badge to eachdevice. This system will allow life-time tracking of gamblingdevices, reinforcing efforts of the National Gambling Board andthe provincial regulatory bodies to detect unlawful gambling.
The additional sections of this Part establish national norms and standards for the calibration and certification of gambling devices. Section 26 re-enacts certain existing regulations promulgated under the National Gambling Act, 1996. Section27 imposes on the National Gambling Board responsibility to establish a national electronic monitoring system to record significant information relating to the use of limited payout gambling machines.
Part E of Chapter 2 establishes national norms and standards relatingto the licensing of employees within the gambling industry.
standards concerning provincial licenses.
Section 50 introduces a new requirement that all licences be for a fixed term of years.
The Minister may prescribe different terms for different categories of licence, but no term can of existing exceed20 years. Transitional provisions stipulate that the fixed term licences starts to run only when the Bill comes into effect. Part E of Chapter 3 establishes, or re-enacts certainexisting, nationalnormsand standards concerning license investigations, decisions and surrender of licenses. Chapter 4 establishes the new National Gambling Policy Council, and continues the existing National Gambling Board, although with a changed composition.
Board, and the Chairpersons of the several provincial licensing bodies.
The National Gambling Board will no longer include Chairpersons of the several provincial licensing bodies, because the Board no longer has a policy consideration corporate requirements are unchanged from the National Gambling Act 1996, although the provisions have been changed to reflect the introduction of over-arching national legislation such as the Public: Finance Management Act, 1999.
concerning enforcement, re-enacts provisions concerning the inspectorsto be appointed by the National Gambling Board, and establishes various offences under the Act.
transition from the regime under the National Gambling Act, 1996, and repeals that Act and 2 subsequent Acts that amended the National Gambling Act, 1996.
Consultation on the Bill amend the National Gambling Act, 1996. With that intent, several drafts were prepared, leading up to a discussion draft, dated 16 January 2001. It was circulated by DTI for discussion to MINMEC and to the National Gambling Board, among others. As a result incorporated into a working document, in the form of a draft Bill.
DTI convened a consultative review for technical purposes with legal advisors from the various provincial administrations late in May 2001, to review and comment on the working document. Following that review, and afterreceivingdirections from the Minister, DTI directed the development of a number of successiveworkingdrafts, culminating in a Draft Amendment Bill in late 2001.
between the national and provincial spheres of government.
Through the process of successive re-drafting, it became apparent that the changes that were required far exceeded the normal scope of an amendment bill, and that it wouldbe difficult to honour theMinister'srequest for a clearer, more rationally organised, Actwithoutstarting out afresh. Followingadiscussion of the merits of repealing and replacing the existing Act, (and having heardan appeal from members of the relevant parliamentary committee requesting fewer wholesale amendment bills), officials of DTI gave instructions forthepreparation of a complete new Bill, incorporating the surviving provisions of the existing Act, together withall new matters on which previous instructions had been given.
Between December 2001 and July, 2002, six drafts of this Bill were prepared and circulated to the National GamblingBoard and provincial licensingauthorities. Consultations were held with legal advisors from the same bodies in May, 2001, July 2002, and August 2002.
The 7th draft of the Bill, dated 10August 2002, reflected discussions with provincial gambling board legaladvisors held at Boksburg on22 July2002,subsequent discussions with officials of the NGB, and directions from officials of DTI, up to 26 July, 2002 as well as written comments received from provincial gamblingboard legal advisors and discussions held at Cape Town on 7 August, 2002.
Following receipt of comments in response to Draft 7, an 8th draft was circulated in early December, 2002, again inviting PLA and NGB submissions.
The 9th draft reflects the drafter's further refinements, based on responses to Draft 8, and this Draft reflects the final instructions given by DTI in response to comments received after the release of Draft 9.