More than R1 million made from illegal online gamblers around the country has been confiscated and forfeited to the state in what the government has hailed as unprecedented court proceedings.
The Department of Trade and Industry says about R1.25 million was derived from illegal gambling activities, and specifically online gambling.
Minister of Trade and Industry Rob Davies had previously cautioned that online gambling was illegal and if South African citizens participate in online gambling and they win, their winnings are the proceeds of an illegal activity and they will be confiscated and forfeited. According to the department, online gambling could be utilised to launder money and it was on this basis that the banks continue to collaborate with the National Gambling Board to confiscate the unlawful winnings.
The department said citizens caught gambling illegally or running an illegal gambling establishment such as internet cafés that provide illegal online gambling would be targeted and would face criminal charges or a hefty fine to the maximum of R10 million, or both.
Department spokesperson Sidwell Medupe said there were four cases before the courts. He said three were in Pretoria and the other in Kimberly.
The National Gambling Board was obliged to investigate the circumstances of illegal gambling activities including illegal online gambling, Medupe said.
Upon determination of such illegal gambling activity, it applies to the high court for an order declaring that the unlawful winnings be forfeited to the state.
The National Gambling Board (NGB) says that besides the forfeiture of unlawful winnings in favour of the State, the punters who partake in illegal gambling activities are liable for criminal prosecution.
National Gambling Board accounting authority Caroline Kongwa said: “The NGB is encouraged by the judiciary system in considering gambling related matters and in a related matter, the High Court of South Africa, Gauteng Division, granted a court judgement in favour of a licensed gambling operator prohibiting an illegal gambling operator from offering illegal online gambling.”
“The public is hereby cautioned to be weary of online gambling offerings, as online gambling is illegal in South Africa, and thus anyone participating in any illegal online gambling activity would be unable to receive any winnings,” she said.
The board has appealed to the public to report websites which advertise online gambling and establishments especially those “disguised as internet cafés” in South Africa which offer online gambling and other illegal gambling activities to the public.
The NGB can be contacted on 010 003 347 5 and for any further information at www.ngb.org.za. Information relating to any suspected illegal gambling activity in South Africa can be provided to the NGB at [email protected].