South Africa lawyer questions minister’s power to regulate mobile gambling
Wayne Lurie says betting products should remain governed by gambling law, even when accessed through mobile networks.
Key takeaways:
- South Africa’s communications and digital technologies minister, Solly Malatsi, said on October 6 that he would engage ICASA to assess whether existing consumer safeguards for betting vouchers sold through mobile networks are adequate.
- Malatsi said using a mobile network to buy or access a betting voucher does not automatically make the gambling product an electronic communications service within ICASA’s regulatory jurisdiction.
- Gambling law attorney Wayne Lurie argues that gambling products should be regulated under South Africa’s National Gambling Act and provincial gambling laws, rather than restricted according to the technology used to access them.
- Lurie warns that any restriction imposed beyond the statutory powers of the communications minister or ICASA could face a legal challenge.
- He also questions whether restricting mobile-network voucher purchases would reduce gambling harm if consumers can use alternative payment methods, saying restrictions on licensed operators could push customers towards unlicensed operators.
Summary: South Africa’s communications minister plans to engage ICASA over consumer safeguards for betting vouchers sold through mobile networks. Gambling law attorney Wayne Lurie argues that such products should remain regulated under gambling legislation and operator licensing, rather than being restricted through telecommunications powers. The debate highlights uncertainty over where ICASA’s consumer-protection mandate ends and gambling regulators’ authority begins.
South Africa.- South Africa’s plans to strengthen protections for online gamblers have raised questions about the division of regulatory powers between telecommunications and gambling authorities, following a legislative review of betting vouchers sold through mobile networks. The issue arose from a parliamentary question submitted by Rise Mzansi MP Makashule Gana, who asked what measures the government could introduce to curb gambling vouchers sold through mobile network providers and prevent minors from purchasing them.
In his written response on October 6, communications and digital technologies minister Solly Malatsi said he would engage the Independent Communications Authority of South Africa (ICASA) to assess whether existing consumer safeguards were adequate and whether further measures could be introduced within its regulatory mandate.
Malatsi acknowledged that using a mobile network to purchase or access a betting voucher does not automatically make the underlying gambling product an electronic communications service regulated by ICASA. He said any additional controls would depend on how the service operates and whether it falls within the regulator’s jurisdiction.
The response prompted gambling law attorney Wayne Lurie of Lurie Inc Attorneys to question whether the minister or ICASA could restrict gambling products that are legally offered under South Africa’s gambling legislation. He warned that measures taken beyond their statutory powers could face a legal challenge.
South Africa’s National Gambling Act and provincial gambling laws govern gambling licences and enforcement. Provincial gambling authorities oversee operators within their jurisdictions, while the National Gambling Board (NGB) performs national oversight functions. ICASA, by contrast, regulates electronic communications services and networks. Lurie argued that using a mobile network to access a betting product does not transfer those responsibilities to ICASA.
The communications regulator nevertheless has consumer protection responsibilities under the Electronic Communications Act and its regulations. Its rules governing premium-rated services set requirements for telecommunications licencees and certain third-party services operating through their networks. Whether those rules cover gambling vouchers depends on how the services are structured.
Lurie also questioned whether restricting the purchase of vouchers through mobile networks would reduce gambling-related harm if consumers could use alternative payment methods. He warned that restrictions affecting licensed betting services could push some customers towards unlicensed operators.
Lurie said the legality of a bet should be determined by the gambling product, the applicable legislation and the operator’s licence, rather than the device used to place it. He maintained that the government could pursue consumer protection measures, but any intervention should respect the respective powers of telecommunications and gambling regulators.
Frequently asked questions (FAQs)
- Can ICASA regulate gambling vouchers sold through mobile networks in South Africa? Not automatically. Minister Solly Malatsi said any additional controls would depend on how the service operates and whether it falls within ICASA’s regulatory jurisdiction.
- Why does Wayne Lurie question proposed restrictions? He argues that the legality of a bet should be determined by the gambling product, applicable legislation and operator licence, not the device or network used to access it. He warns that action beyond statutory powers could be legally challenged.
- Who regulates gambling in South Africa? The National Gambling Act and provincial gambling laws govern gambling licences and enforcement. Provincial authorities oversee operators within their jurisdictions, and the National Gambling Board performs national oversight functions.
