Malatsi revisits ICASA’s role in protecting South Africa’s online gamblers
The communications minister says the consultation will assess consumer safeguards, operator compliance and ICASA’s mandate as online betting expands.
Key takeaways:
- South Africa’s communications and digital technologies minister, Solly Malatsi, said he will engage ICASA to assess whether existing safeguards adequately protect consumers gambling online.
- Malatsi made the remarks at the Sport Business Forum in Johannesburg on October 14, citing the exponential growth of sports betting driven by smart devices and digital technology.
- He raised concerns about financial risks for consumers already facing poverty and unemployment, and pointed to low financial literacy among some consumers.
- The consultation will also consider operator compliance and what measures ICASA can take within its mandate when electronic communications networks and services facilitate access to gambling products.
- Gaming law attorney Wayne Lurie has challenged the legal basis for using telecommunications regulation to limit access to licensed betting products, warning that action beyond ICASA’s statutory mandate could face a court challenge.
South Africa.- Communications and digital technologies minister Solly Malatsi has reiterated his intention to consult South Africa’s communications regulator, the Independent Communications Authority of South Africa (ICASA), on online gambling protections during an address to the Sport Business Forum in Johannesburg on October 14.
Malatsi said sports betting had grown exponentially in recent years, supported by the spread of smart devices and advances in digital technology. While the market creates revenue opportunities for sports teams, federations and other stakeholders, he raised concerns about the financial risks for consumers already facing poverty and unemployment.
He said his department had a responsibility to ensure South Africans could use the internet safely, including when gambling online. Malatsi also pointed to low levels of financial literacy among some consumers as a factor that made the effects of online betting a concern.
The minister said he would engage ICASA to assess whether existing safeguards adequately protect consumers and whether gambling operators comply with applicable requirements. The discussion would also consider what measures could be taken within the regulator’s mandate when electronic communications networks and services facilitate access to gambling products.
Malatsi’s remarks reiterated a response he gave to a parliamentary question about betting vouchers sold through mobile networks and protections against online gambling risks. In that response, he said he would consult ICASA on the protections available to consumers and the scope for further action under its regulatory powers.
However, the role of telecommunications regulation in controlling access to betting products has raised questions about the division of responsibilities between ICASA and South Africa’s gambling regulators. Gaming law attorney Wayne Lurie has challenged the legal basis for using telecommunications regulation to limit access to licensed betting products, arguing that the powers of Malatsi and ICASA in this area are limited. He warned that any action beyond their statutory mandate could face a court challenge.
Frequently asked questions (FAQs)
- What will Malatsi discuss with ICASA? Malatsi said he would engage ICASA to assess whether existing consumer safeguards are adequate and whether gambling operators comply with applicable requirements. The discussion will also consider possible measures within ICASA’s mandate where communications networks and services facilitate access to gambling products.
- Why is ICASA’s role in online gambling contested? Gaming law attorney Wayne Lurie argues that telecommunications regulation has a limited legal basis for restricting access to licensed betting products. He warns that any action beyond the statutory powers of Malatsi and ICASA could face a court challenge.
