How to start a betting website in South Africa?

A significant number of gambling platform owners are interested in South Africa, as this region is very attractive for the gambling industry. Residents of South Africa like gambling which means that there are a lot of potential customers in this region. Unfortunately, the online gambling business is prohibited in this region. But the good news is the government allows betting activities. We guess that each operator must know all the nuances and laws. Thus, we decided to provide you with the necessary information about legislation, taxation policy, popular trends, and the development of online betting in Africa.

History of gambling activities

The South African government banned gambling in 1673. In 1965, a ban was imposed on all gambling activities, except for betting on horse racing, as it was considered a sporting activity. In the late 1970s, casinos started functioning in the independent areas, which are called homelands. There lived only native South Africans, and a significant part of citizens couldn’t access these casinos. This led to the fact that a huge number of illegal casinos appeared in the country. In 1994, when the government was changed, they legalized the gambling business, and betting became a gambling activity. Nowadays, gambling business is prohibited except for land-based casinos and betting.

How does the government regulate online betting in South Africa?

South Africa’s regulatory framework concerning online gambling is quite robust.

South Africa, like other countries, uses a legal but strictly regulated approach to online betting. It means that there are many legal options for South African residents looking to place a bet online. At the same time, there are also many illegal betting activities that may lead to punishment.

The sportsbooks in South Africa must have a license to operate legally in this region. The South African government takes a practical approach for enforcement.

If sportsbooks don’t have a gambling license and gamblers who use these sportsbooks can pay fines, go to jail, and they can be confiscated of properties and funds.

Despite the fact that the potential for heavy punishment (upwards of R10 million) is not restricting factors for many foreign operators, however, the law is clear about the legality concerning betting and possible punishments for using unlicensed betting websites.

How to legalize your betting website?

The legalization of betting platforms is a necessary process to run your gambling business. A gambling license gives you the opportunity to function in the market fully and increases the players’ confidence in your gambling platform. If you want to attract a target audience among Africans, then you need to apply for a license for your betting website. Betting is one of the favorite entertainment for Africans, so they have a deep understanding of the gambling industry and only choose betting websites that are licensed. Therefore, you can obtain a gambling license in South Africa or get an offshore gambling license in such jurisdictions as the Isle of Man, Alderney, Curacao, Malta, Cyprus, and others to legalize your gambling platform in this region.

The selection of payment systems for betting website

When choosing payment systems, you should focus on the preferences of your players. Most Africans prefer to pay by credit card. However, it will be better if you provide a wide range of payment systems since there are customers who prefer to pay with cryptocurrency or other payment methods.

Taxation

Since online casinos are illegal, the tax in South Africa is imposed only on land-based casinos and sportsbooks. If you are going to start one of these kinds of gambling business in South Africa, you will be charged the following taxes:

• value-added tax is 5–10%;
• tax on winnings is 15%;
• corporate tax is 29%.

Conclusion

If you are going to create a betting website, you must initially know more information about all the laws and consider all the costs you will have to make. In any case, all the investments you make in the gambling business will pay off. The betting activities are becoming more profitable and attractive for businessmen. Moreover, you will always find players who will be interested in your betting platform in South Africa. The most important thing is to choose the right marketing campaign and payment methods. Also, do not forget about bonuses and various incentives for players. This also works well for the gambling business and helps to attract a wide audience to your betting site.

References

How to start an online casino in 2021. Step-by-step guide | Slotegrator Academy — YouTube