NO. 33 OF 1996: NATIONAL GAMBLING ACT, 1996

It is hereby notified that the President has assented to the following Act

which is hereby published for general information-

To make provision for the regulation and co-ordination of certain matters

relating to casinos, gambling and wagering; for that purpose to make

provision for the promotion of uniform norms and standards applying generally

throughout the Republic; to make provision for the establishment of the

National Gambling Board; and to make provision for matters connected

therewith.

SINCE the Constitution of the Republic of South Africa, 1993 (Act No. 200

of 1993), provides in section 126 that a provincial legislature shall be

competent to make laws for the province with regard to casinos, gambling and

wagering;

AND SINCE the Constitution in the said section empowers Parliament to make

provision in an Act of Parliament for the promotion of uniform norms and

standards applying generally throughout the Republic with regard to casinos,

gambling and wagering;

AND SINCE it is necessary in order to determine national economic policy

and to prevent provincial laws from materially prejudicing the economic

interests of other provinces and the Republic as a whole;

(Afrikaans text signed by the President.)

(Assented to 27 June 1996.)

BE IT THEREFORE ENACTED by the Parliament of the Republic of South Africa,

as follows:-

1. In this Act, unless the context otherwise indicates-

(i) "bet" means stake any money or thing of value or, expressly or

impliedly, undertake, promise or agree to stake any money or thing

of value on the result or contingency of or relating to any

sporting or athletic contest, competition, tournament or game

usually attended by the public; (xi)

(ii) "Board" means the National Gambling Board established by

section 2; (x)

(iii) "casino" means any premises in or on which gambling is

conducted under a casino licence issued by a provincial licensing

authority; (i)

(iv) "gamble" means play any gambling game, bet or wager on any

lawful event, excluding any lawful lottery or sports pool; (ii)

(v) "gambling game" means any game, whether or not the result

thereof is determined by chance, played with playing cards, dice,

gambling machines or gambling devices for money, property,

cheques, credit or anything of value other than an opportunity to

play a further game, including, without derogating from the

generality of the aforegoing, roulette, bingo, twenty-one,

black-jack, chemin de fer and baccarat, and excluding any lawful

lottery; (iii)

(vi) "inspector" means a person appointed under section 14; (vi)

(vii) "Minister" means the Minister responsible for the

administration of this Act; (vii)

(viii) "opportunity to play a further game" means an opportunity which

cannot be distributed or transferred to the person who has won

such an opportunity or to any other person, for any purpose other

than to use such opportunity without any interruption to continue

playing the type of game in respect of which the opportunity was

won, but does not include an opportunity which can in any manner,

whether directly or indirectly, be converted into money, property,

cheques, credit or anything of value, or can be so converted in

terms of any scheme, arrangement, system, plan or device which the

Minister may from time to time by notice in the Gazette declare

not to be an opportunity to play a further game; (iv)

(ix) "political office-bearer" means a person as defined in section

190A of the Constitution of the Republic of South Africa, 1993

(Act No. 200 of 1993), including members of the Provincial Houses

of Traditional Leaders, the Council of Traditional Leaders, the

Volkstaat Council and any local government, and any official of a

political party; (viii)

(x) "provincial licensing authority" means a body established by a law

of a provincial legislature relating to gambling; (ix)

(xi) "this Act" includes any regulation made under section 17. (v)

2. There is hereby established a juristic person to be known as the

National Gambling Board.

3. (1) The Board shall consist of-

(a) a chairperson, who in the opinion of the Minister, after he or she has

consulted with the premier of each province, is a fit and proper

person to serve as chairperson of the Board;

(b) one member designated by the Minister;

(c) four members, one each designated by the Ministers of Environmental

Affairs and Tourism, of Finance, for Safety and Security, and of Trade

and Industry;

(d) one representative of each province designated by the government of

such province; and

(e) not more than two members, who in the opinion of the Minister, have

applicable knowledge or experience of matters connected with the

objects of the Board, and who shall be appointed by the Minister.

(2) The chief executive officer, appointed by the Board in terms of

section 7(1)(a), shall ex officio be a member of the Board, but he or she

shall not have voting rights at Board meetings.

(3) The members referred to in subsection (])(a) and (e) shall be

appointed only after the Minister has through the media and by notice in the

Gazette invited nominations of persons as candidates for the respective

positions on the Board, and the parliamentary committees concerned have made

recommendations to the Minister in relation thereto after a transparent and

open process of considering persons so nominated, having due regard to the

objects of the Board as set out in section 10.

(4) A member of the Board shall hold office for such period, not exceeding

five years, as the Minister may determine at the time of appointment, and

shall be eligible for reappointment at the termination of his or her first

term of office: Provided that a person appointed in terms of subsection

(1)(c) or (d) may be substituted at any time at the request of the Minister

or government, as the case may be, by whom he or she was designated.

(5) The Minister may, after he or she has afforded a member the

opportunity to state his or her case, at any time terminate the term of

office of any member if such member has become disqualified or has neglected

to perform his or her functions as a member properly: Provided that when the

member is a person appointed in terms of subsection (1)(c) or (d), the

Minister shall prior to such termination consult the Minister concerned or

the Premier of the province concerned, as the case may be.

(6) The Minister shall, in accordance with subsection (1) and subject to

subsections (3) and (4), fill a casual vacancy on the Board by, in the case

of-

(a) the chairperson, the appointment of another person as chairperson; and

(b) any other member, the appointment of another person as member, for

such period, not exceeding five years, as the Minister may determine

at the time of appointment.

(i) unless he or she is a fit and proper person;

(ii) if such person, whether personally or through his or her

spouse, partner or associate-

(aa) has or acquires a direct or indirect financial interest in

any activity related to the objects of the Board; or

(bb) has or acquires any interest in any business or enterprise

that may conflict or interfere with the proper performance of

his or her duties as a member of the Board;

(iii) if such person-

(aa) is or becomes a political office-bearer;

(bb) is an unrehabilitated insolvent, or becomes insolvent and the

insolvency results in the sequestration of his or her estate;

(cc) has at any time been, or is removed from an office of trust

on account of misconduct; or

(dd) has at any time been or is convicted, whether in the Republic

or elsewhere, of theft, fraud, forgery or uttering a forged

document, perjury, an offence under the Corruption Act, 1992

(Act No. 94 of 1992), or any offence involving dishonesty.

(b) A person shall, prior to his or her appointment as a member, submit to

the Minister a written statement in which it is declared whether or

not he or she has any interests as referred to in paragraph (a)(ii)

and whether or not he or she is disqualified in terms of paragraph

(a)(iii).

(c) If any member of the Board during his or her term of office acquires

an interest which is or is likely to become an interest as referred to

in paragraph (a)(ii), he or she shall forthwith after the acquisition

of such interest in writing inform the Minister thereof.

(8)(a) A member of the Board shall not vote, attend or in any other manner

participate in or influence the proceedings at any meeting of the Board if,

in relation to any matter before the Board, he or she has any interest which

precludes him or her from performing his or her functions as a member of the

Board in a fair, unbiased or proper manner.

(b) If at any stage during the course of any proceedings of the Board it

appears that a member of the Board has or may have any interest as referred

to in paragraph (a)-

(i) that member shall forthwith and fully disclose the nature of

his or her interest and leave the meeting so as to enable the

remaining members of the Board to discuss the matter and determine

whether that member should be prohibited from participating in the

further proceedings at such meeting by reason of a conflict of

interests; and

(ii) such disclosure, and the decision taken by the remaining

members of the Board in that regard, shall be recorded expressly

in the minutes of the meeting in question.

(c) If any member of the Board fails to disclose any interest referred to

in paragraph (a) or if, having such an interest, he or she attends or in any

manner participates in or directly influences the proceedings at the meeting

concerned, the relevant proceedings shall be null and void.

4. (1) The first meeting of the Board shall be held on such a date and at

such a time and place as the chairperson may determine, and all meetings

thereafter shall be held on such dates and at such times and places as the

chairperson may determine in consultation with the Board.

(2) The procedure at a meeting of the Board shall be determined by the

chairperson in consultation with the Board, and any decision in this regard

shall be taken after due consideration of the principles of openness and

transparency.

(3) The quorum for a meeting of the Board shall be the majority of the

members of the Board.

(4) A decision of the Board shall be taken by a majority of the votes of

the members present at a meeting of the Board, and in the event of an

equality of votes on any matter, the chairperson shall have a casting vote in

addition to his or her deliberative vote.

Committees of Board

5. (1) The Board may from time to time appoint one or more committees to

perform the functions and exercise the powers delegated to it by the Board.

(2) A committee shall consist of such members of the Board as the Board

may designate.

(3) The Board shall designate the chairperson of a committee.

(4)(a) A committee shall perform its functions and exercise its powers

subject to the provisions of this Act and such directives of the Board as are

not in conflict with such provisions.

(b) Any decision taken in the performance or exercise of a function or

power so delegated shall be deemed to have been taken by the Board.

Remuneration and allowances of members of Board and committees

6. (1) Members of the Board or a committee who are not in the full-time

service of the State, shall in respect of their services be paid such

remuneration and allowances as may be determined by the Minister with the

concurrence of the Minister of State Expenditure.

(2) 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 per-formed by them.

7. (1) The Board shall, subject to its directions and control, in the

performance of its functions under this Act, be assisted by-

(a) a suitably qualified and experienced person as chief executive officer

appointed by the Board for the purpose of assisting the Board in the

performance of all financial, administrative and clerical

responsibilities pertaining to the functions of the Board, and who

shall in respect thereof be accountable to the Board; and

(b) such staff, appointed by the Board, as may be necessary to enable the

Board to perform its functions.

(2) The persons appointed by the Board in terms of subsection (1), and

inspectors appointed in terms of section 14, shall receive such remuneration,

allowances and other employment benefits and shall be appointed on such other

terms and conditions and for such periods, as the Board may determine.

(3)(a) Any function or power which the Board may perform or exercise in

terms of this Act, may be delegated either generally or specially to any

member of the staff of the Board.

(b) Any delegated function so performed or delegated power so exercised

shall be deemed to have been performed or exercised by the Board.

(a) money appropriated by Parliament;

(b) levies determined by the Board in consultation with the Minister, the

Minister of Finance and the premiers of the provinces by proclamation

in the Gazette and collected from persons holding licences in

accordance with this Act and in terms of relevant provincial

legislation for specific functions of the Board; and

(c) other money accruing to the Board from any source.

(4)(a) The Board may in any financial year submit supplementary statements

of the estimated expenditure of the Board for that financial year to the

Minister for his approval.

(b) The approval of the Minister shall only be granted with the

concurrence of the Minister of State Expenditure.

(a) be charged with the responsibility of accounting for State and any

other money received or paid out for or on account of the Board; and

(b) cause the necessary accounting and other related records to be kept.

(a) report to the Minister at least once every year on its activities, and

the Minister shall cause such report to be tabled forthwith in

Parliament; and

(b) simultaneously submit copies of the report referred to in paragraph

(a) to the premiers of the various provinces.

(a) with a view to the effective performance of certain matters relating

to casinos, gambling and wagering to promote uniform norms and

standards applying generally throughout the Republic, and to bring

about uniformity in the legislation relating to gambling in force in

the various provinces;

(b) to establish and maintain a national inspectorate to perform

inspection services in respect of certain gambling activities;

(c) to monitor the existence of any dominant or over-concentrated

market-share in the gambling industry in the Republic;

(d) to advise the Minister and the provinces on any matter in respect of

which the Minister or the provinces require the advice of the Board;

(e) to do research with reference to any matter referred to in paragraph

(a) and to study and investigate all such matters in order to make

recommendations for the development, improvement, modernisation or

reform thereof;

(f) to facilitate the resolution of any disputes which may arise between

the respective provinces regarding the regulation and control of

gambling activities; and

(g) to liaise with any, foreign or international body having any objects

similar to the objects of the Board.

(i) the powers of the provinces, and the regional, economic,

financial, social and moral interests of the Republic;

(ii) the promotion of the basic principles underlying gambling in

the Republic referred to in section 13; and

(iii) international developments in the field of gambling;

(i) the manner and nature of the regulation and control of

gambling activities in general or in connection with a specific

gambling activity;

(ii) the granting, issuing, suspension, withdrawal and amendment

of gambling licences;

(iii) the criteria to be complied with before any gambling licence

is granted;

(iv) the nature and manner of the auditing of the businesses of

licensees and the documents and records which shall be kept and

submitted to the provincial authorities;

(v) the imposition of taxes, levies and duties in respect of any

gambling activities;

(vi) the types of games that may be played in a casino;

(vii) the types, minimum standards and qualities of gambling equipment

which may be used by any licensee;

(viii) the control and restriction of the game of bingo or any similar

game;

(ix) any matter on which the Minister or a provincial authority

requires the advice of the Board;

(x) measures relating to the advancement, upliftment and economic em-

powerment, through the gambling industry, of persons or groups or

categories of persons disadvantaged by unfair discrimination;

(xi) in general, any other matter which the Board may consider

necessary or expedient to give advice to the Minister or a

provincial authority;

(d) the Board may advise the Minister on the determination of national

norms and standards regarding any matter referred to in paragraph (c)

that should apply generally throughout the Republic;

(e) the Board may in consultation with the Minister allocate out of the

funds of the Board such amounts as may be necessary for programmes for

the rehabilitation of persons who in its view have become addicted to

obsessive gambling; and the Board may require any licensing authority

to submit any report or information related to the activities of such

licensing authority to the Board.

12. The Board may consult any person, organisation or institution with

regard to any matter deemed necessary by the Board in order to enable the

Board to achieve its objects.

(a) Gambling activities shall be effectively regulated, controlled,

policed and licensed;

(b) members of the public who participate in any licensed gambling

activity shall be protected;

(c) society and the economy shall be protected against the

over-stimulation of the latent demand for gambling;

(d) standardisation and quality in respect of equipment used by any

licence holder shall be promoted and maintained;

(e) the issuing of licences in respect of any gambling activity shall be

transparent, fair and equitable;

(f) the State or any organ of the state or any organisation with which the

State is concerned shall from 10 May 1999, apart from taxes or levies,

not have any financial interest in any gambling activity: Provided

that any provincial licensing authority considering an application for

a licence contemplated in paragraph (j) before 10 May 1999 shall

disregard any such financial interest held by the State, such organ of

the State or organisation;

(g) licensing authorities with specific functions and powers relating to

gambling shall be established by the provinces for the regulation and

control of gambling activities;

(h) no political office-bearer shall-

(i) be a member of an authority referred to in paragraph (g); or

(ii) have a direct or indirect financial interest in any gambling

activity;

(i) matters relating to gambling activities shall be performed in

accordance with norms and standards determined by the Minister, with

due regard to the findings and recommendations of the Board, by

regulation made in terms of section 17(1)(b);

(j) a maximum of 40 casino licences may be granted in the Republic, and

such casino licences shall be divided among the provinces as follows:

(i) Eastern Cape 5;

(ii) Free State 4;

(iii) Gauteng 6;

(iv) KwaZulu-Natal 5;

(v) Mpumalanga 4;

(vi) Northern Province 3;

(vii) Northern Cape 3;

(viii) North West 5;

(ix) Western Cape 5:

Provided that where the number of licences in a province issued before

27 April 1994 exceeds the maximum number of licences allocated to a

province in terms of this paragraph, such allocation shall be deemed

to be applicable to that province from 10 May 1999;

(k) the maximum number of gambling machines, other than gambling machines

in casinos, which may be licensed in the Republic or in any particular

province shall be prescribed by regulation made in terms of section

17;

(l) gambling machines referred to in paragraph (k) shall be linked to a

central electronic monitoring system for the purposes of the

monitoring and detection of significant events associated with each

gambling machine;

(m) the South African Bureau of Standards mentioned in section 2(1) of the

Standards Act, 1993 (Act No. 29 of 1993), shall be the sole agent for

the Board in respect of the standardisation, testing, analysis,

calibration and certification of gambling machines, any electronic

monitoring system or any other devices or systems used for the

purposes of a gambling game or any other gambling activity.

(a) "gambling machine" means any electronic or electromechanical device,

contrivance or machine which, upon insertion of a coin, token or

similar object, or upon payment of any consideration, is available to

be played or operated, and the playing or operation of which, whether

by reason of the skill of the operator or as a result of chance, or

both, may entitle the person playing or operating the machine, or any

other person, to receive cash or anything of value;

(b) "electronic monitoring system" means any electronic or computer or

communications system or device that is so designed that it may be

used or adapted to send or receive data to or from gambling machines

in relation to the security, accounting or operation of gambling

machines.

(a) no person shall, subject to paragraph (b), hold more than 16 casino

licences in the Republic or more than two casino licences in any

particular province: Provided that any person who prior to 27 April

1994 held more than two casino licences in a particular province may

hold not more than three casino licences in that particular province;

(b) the provisions of paragraph (a) shall until 10 May 1999, subject to

subsection (1)(j), not be applicable to a person to whom a licence has

been granted in terms of any law in force immediately before 27 April

1994;

(c) a provincial legislature may in provincial legislation provide that a

person may be deemed to be a body referred to in subsection (4)(c).

(a) any natural person;

(b) any company, organisation, trust, partnership, association or any

other corporate body;

(c) any natural person or body referred to in paragraph (b) who or which

holds or controls a direct or indirect financial interest of more than

10 per cent in any casino licence-, or

(d) any natural person or body referred to in paragraph (b) who or which

manages or in any other way conducts, controls, administers or

supervises a casino on behalf of another person or body who or which

is the holder of a casino licence.

14. (1) The Board may appoint any suitably qualified person as an

inspector to perform, subject to the control and directions of the Board, any

of the or all functions assigned to an inspector by section 15.

(2) Every inspector appointed under subsection (1) shall be furnished with

a certificate signed on behalf of the Board and stating that he or she has

been so appointed as an inspector: Provided that if his or her appointment

as inspector is limited to any particular function or particular functions,

his or her certificate shall state such limitation.

(3) Whenever an inspector designated under subsection (1) performs a

function under this Act in the presence of the person affected thereby, the

inspector shall on request by such person produce to him or her the

certificate referred to in subsection (2).

(a) without prior notice enter upon any licensed or unlicensed premises

which are occupied or used for the purposes of any gambling activity

or any other premises on which it is suspected-

(i) that a casino or any other gambling activity is being

conducted without the authority of a licence;

(ii) that persons are being allowed to play or participate in any

gambling game or other gambling activity or to play any gambling

machine; or

(iii) that any gambling machine or any equipment, device, object,

book, record, note, recording or other document used or capable of

being used in connection with the conducting of a casino or any

other gambling activity may be found, and may, after having

informed the person who is then deemed or appears to be in charge

of the premises of the purpose of his or her visit, make such

investigation and enquiry as he or she may think necessary;

(i) require the production of any licence or written permission or

authorisation required under any provincial law relating to

gambling activities of the person in control of such premises;

(ii) question any person who is on or in such premises, and inspect any

activities in connection with the conduct of any gambling

activity; and

(iii) examine or inspect any gambling machine, equipment, device,

object, book, record, note or other document referred to in

paragraph (a) found on those premises and make a copy thereof or

an extract therefrom;

(i) to point out any equipment, device or object referred to in that

paragraph which is in his or her possession or custody or under

his or her control;

(ii) to produce for the purpose of examination or of making copies or

extracts, all books, records, notes or other documents referred to

in paragraph (a) which are in his or her possession or custody or

under his or her control;

(iii) to provide any information in connection with anything which has

been pointed out or produced in terms of subparagraph (i) or (ii);

and

(d) seize and remove any gambling machine, equipment, device, object,

book, record, note or other document referred to in paragraph (a)

which in his or her opinion may furnish proof of a contravention of

any provision of a provincial law relating to gambling or mark it for

the purposes of identification.

(2) When performing any function in terms of subsection (1), an inspector

may be accompanied by and avail himself or herself of the services of an

assistant, interpreter or any police officer.

(3) An inspector shall in respect of any provision of this Act or any

other national or provincial legislation or any regulations promulgated under

such legislation applying in respect of gambling and associated activities be

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

No. 51 of 1977).

(a) falsely represents himself or herself to be an inspector;

(b) wilfully obstructs, hinders or delays any inspector or other person

lawfully accompanying an inspector in the performance of his or her

functions under this Act;

(c) without the consent in writing of the inspector concerned, removes

from the place where it has been left by the inspector, or tampers

with, destroys or makes alterations to anything seized by such

inspector;

(d) refuses or fails to comply to the best of his or her ability with any

request of an inspector under section 15; or

(e) contravenes or fails to comply with any provision of this Act, shall

be guilty of an offence and on conviction liable to a fine or to

imprisonment for a period not exceeding 10 years, or to both such fine

and such imprisonment.

(a) the maximum number of any kind of licence relating to gambling to be

granted in the Republic or in each province;

(b) the determination of norms and standards relating to any matter

referred to in section 11 (d) which shall apply generally throughout

the Republic; and

(c) in general, any other matter which may be considered necessary or

expedient to prescribe in order to achieve the objects of this Act.

(2) The Minister shall not make any regulations under subsection (1) or

section 13(1)(k) unless he or she has consulted with the premier of each

province.

(3) Any regulation made under this Act shall be laid on the Table in

Parliament within 14 days after the publication thereof in the Gazette if

Parliament is in ordinary session, or, if Parliament is not in ordinary

session, within 14 days after the commencement of the next ensuing ordinary

session.

18. Any gambling debt lawfully incurred by a person in the course of any

gambling activity regulated by any law, and which is not in any respect in

conflict with such a law, shall, notwithstanding provisions of common law or

any other law, be enforceable in law.

19. The Lotteries and Gambling Board Act, 1993 (Act No. 210 of 1993), is

hereby repealed.

20. This Act shall be called the National Gambling Act, 1996, and shall

come into operation on a date fixed by the President by proclamation in the

Gazette.