The Casino Association of South Africa (CASA) issued a warning to regulators in the country over the ongoing increase in illegal online gambling and the threat it poses to national tax revenue.
Online gambling is yet to be legalised in the country but this has not stopped South African players accessing services illegally.
Themba Ngobese, chief executive officer of CASA, has now called on national regulators to consider implementing some sort of legalised service that will not only help to protect players when gambling online, but also generate additional tax revenue for the country.
Although Ngobese said the current widespread use of illegal online gambling makes it near impossible to calculate tax lost through such activities, this figure could run into the hundreds of millions of South African Rand.
“We have seen a mushrooming of online gaming operations which are disguised as internet cafés and/or entertainment lounges,” Ngobese told the CASA website.
“They are mushrooming all over the country and what they really offer is illegal online gambling.
“We always make an estimate and say, look, our gaming tax, which excludes VAT and corporate tax as of the end of the year at March 2014, was just about R2.2 billion (€161.5 million/$189.9 million).
“If they do 5% of what we do, then the country and coffers are losing R110 million in terms of gaming tax, which is a big figure.”
Considering the potential tax revenue lost through illegal activity, Ngobese is calling for regulators to introduce some sort of legal service in order to recoup some of these funds.
“We believe that it (regulation) is the future; unfortunately it is illegal as outlawed by statute, but it’s happening nonetheless and unfortunately also competing with us, which is not fair under the circumstances in which we operate,” Ngobese added.
“What we are saying is please just stay away from online gambling because of the negatives associated with it in terms of tax.
“As things stand today, we do not have even a bill that has been presented in parliament for consideration – that’s the situation that we stand with.
“We are aware of a bill that is due to be presented at some stage by the opposition party in the National Assembly, but that has not yet happened, unfortunately.
“Until it is legislated, stay away from it; and, of course, if it’s legalised, then it’s a fair playing field and everyone should be able to participate in it.”
source : www.igamingbusiness.com
