NOTICE 319 OF 2014 REMOTE GAMBLING BILL PUBLICATION AND INVITATION FOR PUBLIC COMMENT

Transcription

1 STAATSKOERANT, 23 APRIL 2014 No GENERAL NOTICE NOTICE 319 OF 2014 REMOTE GAMBLING BILL PUBLICATION AND INVITATION FOR PUBLIC COMMENT In accordance with Rule 241(1)(b) of the Rules of the National Assembly, notice is hereby given that Geordin Gwyn Hill-Lewis MP intends introducing a private member's bill shortly in order to provide a legal basis for the regulation and control of all remote gambling activities. A copy of the draft Remote Gambling Bill and a memorandum setting out its objectives are included in the schedule to this notice in fulfillment of the requirements of Rule 241(1)(c) of the Rules of the National Assembly. Interested parties and institutions are invited to submit written representations on the draft bill to the Secretary to Parliament within 30 days of the publication of this notice. Representations can be delivered to the Secretary to Parliament, Old Assembly Building, Parliament Street, Cape Town or mailed to the Secretary to Parliament, P 0 Box 15, Cape Town 8000 or ed to mbcoetzee@,parliament.gov.za and copied to karenb@da.org.za. 16 April 2014 Geordin Gwyn Hill-Lewis MP

2 4 No GOVERNMENT GAZETTE, 23 APRIL 2014 SCHEDULE REPUBLIC OF SOUTH AFRICA REMOTE GAMBLING BILL (As (As introduced in in the the National Assembly (proposed section Bill)) Bill) (Bill and (Bill prior and notice prior notice of its of introduction its introduction published in in Government Gazette No. XXX of 22 of April 23 April 2014) 2014) (The (The English English text text is is the the official text of of the the bill) bill) (Geordin Gwyn Hill-Lewis, MP) [PMB3-2014] [PMB

3 STAATSKOERANT, 23 APRIL 2014 No BILL To provide for the regulation and licensing of remote gambling in the Republic of South Africa; to provide for uniform norms and standards in respect of remote gambling to be applicable throughout the Republic; to prevent minors and vulnerable persons from being exposed to the negative effects of gamblng; to ensure compliance with the Financial Intelligence Centre Act; to protect the public and licensed remote gambling operators from fraud and criminal behaviour, money laundering or financing of terrorist and related activities; and to provide for matters connected therewith. BE IT ENACTED by the Parliament of the Republic of South Africa, as follows:- Sections TABLE OF CONTENTS CHAPTER 1 INTERPRETATION AND APPLICATION 1 Definitions 2 Purpose of Act 3 Application of Act and other laws CHAPTER 2 PROHIBITED REMOTE GAMBLING AND STATUS OF REMOTE GAMBLING DEBT 4 Unlicensed remote gambling activity unlawful 5 Remote gambling in relation to illegal activities unlawful 6 Unlicensed use of premises unlawful 7 Enforceability of remote gambling debts and forfeiture of unlawful winnings

4 6 No GOVERNMENT GAZETTE, 23 APRIL 2014 CHAPTER 3 PRIZES AND REMITTANCE 8 Payment of prizes and remittance of profits and winnings 9 Remittance to foreign nationals and external companies CHAPTER 4 RESPONSIBILITIES AND FUNCTIONS OF THE PROVINCIAL LICENSING AUTHORITIES AND THE NATIONAL BOARD 10 Powers and functions of provincial licensing authorities in respect of remote gambling 11 Responsibilities of provincial licensing authorities 12 Information to national board 13 Responsibilities and functions of the national board 14 Register of remote gambling licences CHAPTER 5 CATEGORIES OF LICENCES AND JURISDICTION 15 Categories of licences 16 Authority to issue licences 17 Jurisdiction of provincial licensing authority 18 CHAPTER 6 APPLICATIONS, REFUSALS, DISQUALIFICATIONS, RENEWALS, CANCELLATIONS, TRANSFERS AND SURRENDER OF LICENCES 19 Application for a remote gambling licence 20 Process after receiving an application for a remote gambling licence 21 Review of recommendation to issue remote gambling licence 22 Investigation of application by the provincial licensing authority 23 Obtaining further information in connection with application 24 Representations by municipalities and interested persons, and response by applicant 25 Application and representations open to public inspection and confidential information 26 Grounds for refusing a remote gambling licence 27 Disqualifications for remote gambling employment licence 28 Disqualifications and restrictions for the other remote gambling licences excluding remote gambling employment licences 29 Communication of decision and issue of licence including conditions 30 Renewal of remote gambling licence and amendment of conditions of licence 31 Suspension of remote gambling licence 32 Cancellation of remote gambling licence 33 Surrender of remote gambling licence and conditions imposed 34 Transfer of licence 35 Removal of business to other premises

5 STAATSKOERANT, 23 APRIL 2014 No Disqualification after licence issued 37 Costs of investigation 38 Appeals and reviews CHAPTER 7 CONDITIONS RELATING TO KEY PERSONS EMPLOYED IN REMOTE GAMBLING INDUSTRY 39 Licensing of key persons employed in the remote gambling industry 40 Conditions of employment licensing CHAPTER 8 RESTRICTIONS AND RESTRICTED ACTIVITIES 41 Minors 42 Restrictions on granting credit to gamblers 43 Excluded persons 44 Restrictions on advertising and promotion of gambling activities and granting of discounts 45 Provision of remote gambling activities 46 Restrictions on remote gambling activities CHAPTER 9 STANDARDS FOR WEB SITES AND REMOTE GAMBLING EQUIPMENT 47 Standards for remote gambling web sites 48 Requirements for remote gambling equipment 49 Cheating, cheating devices and manipulation of outcomes CHAPTER 10 PLAYER PROTECTION 50 Display of information to player 51 Requirements to reduce risk to players with time critical events 52 Requirements regarding measures intended to deter, prevent and detect collusion and cheating 53 Requirements for players to impose their own financial limits 54 Requirements regarding enticements to gamble 55 Requirements regarding operators' policies on cheating

6 8 No GOVERNMENT GAZETTE, 23 APRIL 2014 CHAPTER 11 ENFORCEMENT AND OFFENCES 56 Inspectors 57 Breach of confidence 58 Obstructing administration of Act 59 Self incrimination 60 Failure to comply with Act 61 Offences and breach of licence condition 62 Proof of facts 63 Penalties and forfeitures CHAPTER 12 GENERAL PROVISIONS 64 Regulations by Minister 65 Regulations by responsible Member of the Executive Council 66 Tax on remote gambling 67 Repeal of laws 68 Short title and commencement CHAPTER 1 INTERPRETATION AND APPLICATION Definitions 1. In this Act, unless the context indicates otherwise- "amusement game" means a game that has a restricted prize, and that may be regulated and licensed in terms of provincial law contemplated in section 47 of the National Gambling Act; "authorised financial institution" means a financial institution registered in terms of the Banks Act, 1990 (Act No. 94 of 1990), or comparable legislation in approved foreign countries, which regulate institutions that conduct the business of a bank; "bet" means an agreement whereby a person or persons risks money or a valuable consideration on the outcome of an unpredictable event occurring or not occurring, be it a sporting event, game or any contingency, or on the cumulative outcome or likelihood of a combination of sporting events or other events or contingencies occurring or not occurring, and that outcome or cumulative outcome determines the financial benefit, if any, which accrues to either that person or persons, as the case may be, and to bet", "betting" and "wager" have a corresponding meaning; "bingo" means a game, including a game played in whole or in part by electronic means - (a) played for consideration, using cards or other devices- (i) that are divided into spaces each of which bears a different number, picture or

7 STAATSKOERANT, 23 APRIL 2014 No symbol; and (ii) with numbers, pictures or symbols arranged randomly such that each card or similar device contains a unique set of numbers, pictures or symbols; (b) in which an operator or announcer calls or displays a series of numbers, pictures or symbols in random order and the players match each such number, picture or symbol on the card or device as it is called or displayed; and (c) in which the player who is first to match all the spaces on the card or device, or who matches a specified set of numbers, pictures or symbols on the card or device, wins a prize, or any other substantially similar game declared to be bingo in terms of section 6(4) of the National Gambling Act; "bookmaker" means a person who is licensed to accept offers or stakes in the process of transacting bets on sporting events or contingencies; "casino" means premises where casino games are played, or are available to be played, but does not include premises in which- (a) only bingo and no other casino game is played or available to be played; (b) only limited pay-out machines, as defined in the National Gambling Act, are available to be played; (c) limited pay-out machines, as defined in the National Gambling Act, are available to be played and bingo, but no other casino game is played or available to be played; or (d) only social gambling, as defined in the National Gambling Act, is conducted in terms of a temporary licence or provincial law; "casino game" means any game, irrespective of whether or not the result thereof is determined by chance or a measure of skill, played with playing cards, dice, a gaming machine or any other device used to determine win or loss in the outcome of a wager for money or other valuable consideration, and includes, without derogating from the generality of the foregoing, roulette, keno, twenty-one, blackjack, bingo, poker, chemin de fer, baccarat, or any other game whose rules closely resembles that of the foregoing; "contingency" means an event or occurrence of which the outcome is uncertain or unknown to any person until it happens; "Constitution" means the Constitution of the Republic of South Africa, 1996; "equal chance gambling" means a form of gambling that does not involve playing or staking money or any other valuable consideration against the house and in which the chances of winning the gambling game are equally favourable to all participants: Provided that how the house is described in game rules and similar prescripts and whether or not the house is controlled or administered by a player, is irrelevant in determining whether or not a form of gambling, or any game, constitutes equal chance gambling; "excluded person" means a person who has been registered as such in terms of section 14 of the National Gambling Act in order to be prevented from engaging in any gambling activity; "external company" means a foreign company that is carrying on business, or non-profit activities, as the case may be, within the Republic, subject to section 23(2) of the Companies Act, B

8 10 No GOVERNMENT GAZETTE, 23 APRIL (Act No. 71 of 2008); "financial interest" means - (a) a right or entitlement to share in profits or revenue; (b) a real right in respect of property of a company, corporation or business; (c) a real or personal right in property used by a company, corporation or business; (d) a direct or indirect interest in the voting shares, or voting rights attached to shares, of a company; or (e) an interest in a close corporation; "Financial Intelligence Centre Act" means the Financial Intelligence Centre Act, 2001 (Act No. 38 of 2001); "foreign national" means an individual who is neither a citizen nor a resident of the Republic; "gambling" means a bet or a wager or engaging in any activity whereby money or any valuable consideration is staked on the unknown result of a future event at the risk of losing all or a portion of the money or valuable consideration so staked for the sake of a return and is the generic term encompassing all forms of "gaming" and "betting" and "gamble" and "gambling activity" have a corresponding meaning but excludes- (a) any lawful lottery; (b) any recognised investment activity undertaken with a financial institution recognised as such in the Republic; and (c) any event undertaken solely for the purposes of fundraising; "inspector" means a person appointed in terms of section 76 of the National Gambling Act or by any provincial licensing authority; "key employee" means- (a) the senior management of the remote gambling operator; (b) if the remote gambling operator is a corporate body, every director, officer or equivalent of such body; and (c) any individual who has been represented by the remote gambling operator to the provincial licensing authority to be a key employee; "licensed" when used in relation to- (a) a person, means to be in lawful possession of a valid licence issued to that person in terms of this Act or in terms of applicable national or provincial law; or (b) a remote gambling activity, means that a valid licence has been issued in terms of this Act to a licensee permitting the licensee to engage in or conduct that remote gambling activity, or make that remote gambling activity available for other persons to engage in; "licensee" means a person who holds a valid licence issued in terms of this Act; "licensed premises" means specific premises that are named or described in a licence issued in terms of this Act or in terms of applicable national or provincial law; "manufacturer, supplier or maintenance provider" means a person whose business is to import, manufacture, sell, lease, make available, distribute, maintain or repair remote gambling

9 STAATSKOERANT, 23 APRIL 2014 No equipment or remote gambling software; "Minister" means the Cabinet member responsible for the administration of this Act; "minor" means a person under the age of 18 years; "money laundering" means an activity which has or is likely to have the effect of concealing or disguising the nature, source, location, disposition or movement of the proceeds of unlawful activities or any interest which anyone has in such proceeds, and includes any activity which constitutes an offence in terms of section 64 of the Financial Intelligence Centre Act or section 4, 5 or 6 of the Prevention of Organised Crime Act, 1998 (Act No. 121 of 1998); "national board" means the National Gambling Board as retained and constituted by Part B of Chapter 4 of the National Gambling Act; "National Gambling Act" means the National Gambling Act, 2004 (Act No. 7 of 2004); "National Revenue Fund" means the National Revenue Fund referred to in section 213 of the Constitution; "other event" means any event or contingency, including a horse race or a sporting event; "organ of state" means an organ of state as defined in section 239 of the Constitution; "person" includes a juristic person, a group of such persons or a corporate body unless the context indicates a contrary intention; "person-to-person gambling" means a form of gambling in which persons gamble against each other, facilitated by an operator and involves gambling by the participants on, inter alia, equal chance gambling games such as poker, or sports betting; "player account" means an account held in the name of the player with a remote gambling operator; "political office bearer" means- (a) a member of the National Assembly, the National Council of Provinces or the Cabinet; (b) a member of a provincial legislature; (c) a member of a municipal council or local authority; (d) a diplomatic representative of the Republic who is not a member of the public service; or (e) a national or provincial office bearer of a political party; "premises" includes land and any building, structure, vehicle, ship, boat, vessel, aircraft or container; "prescribed" means prescribed by regulation in terms of this Act and "prescribe" has a corresponding meaning; "provincial law" means an Act of a provincial legislature concerning the regulation of casinos,

10 12 No GOVERNMENT GAZETTE, 23 APRIL 2014 gambling, racing or wagering and includes subordinate legislation made in terms of such Act; "provincial licensing authority" means a body established by provincial laws to regulate casinos, racing, gambling or wagering; "Provincial Revenue Fund" means the Provincial Revenue Fund referred to in section 226 of the Constitution; "public servant" means a person employed within an organ of state or within a court, or a judicial officer; "register of excluded persons" means the register required to be maintained by the national board in terms of section 14 of the National Gambling Act; "regulations" means the regulations made in terms of this Act; "relative or family member" means a person's- (a) spouse; or (b) child, parent, brother or sister, whether such relationship results from birth, marriage or adoption; "remote communication" means communication using- (a) the internet; (b) the telephone or mobile phone; (c) the television; (d) the radio; or (e) any other kind of electronic or other technology for facilitating communication over a distance; "remote gambling" means gambling in which persons participate by means of remote communication; "remote gambling activity" means gambling in which persons participate by the use of remote communication and includes but is not limited to- (a) gambling on virtual gambling games; engaging in person-to-person gambling; participation in equal chance gambling; and participation in a casino game, bingo game or sports betting; (b) (c) (d) "remote gambling employment licence" means a licence permitting a key employee to work in the remote gambling industry within the Republic; "remote gambling equipment" means electronic or other equipment used by or on behalf of a person providing facilities for remote gambling- (a) to store information relating to a person's participation in the gambling; (b) to present, to persons who are participating or may participate in the gambling, a virtual game, virtual race or other virtual event or process by reference to which the gambling is conducted; (c) to determine all or part of a result or of the effect of a result; or

11 STAATSKOERANT, 23 APRIL 2014 No (d) to store information relating to a result of gambling activity; "remote gambling licence" means any of the licences referred to in section 15; "remote gambling manufacturer, supplier or maintenance provider licence" means a licence to import, manufacture, sell, lease, make available, distribute, maintain or repair remote gambling equipment or remote gambling software; "remote gambling operator" means a person, who for a monetary commission or other reward, directly facilitates or makes available a remote gambling activity but excludes- (a) an electronic communications service licensee licensed in terms of the Electronic Communications Act, 2005 (Act No. 36 of 2005), which acts only as a carrier of a betting transaction and does not facilitate such transaction in any other way; and (b) a person acting within the scope of a bookmaker, totalisator, casino or bingo licence unless such person has obtained a licence to operate as a remote gambling operator in terms of section 18(9); "remote gambling operator licence" means a licence issued in terms of this Act permitting a person to operate as a remote gambling operator; "remote gambling software" means computer software designated for use in connection with remote gambling activities; "remote gambling transaction" means a transaction which commences when a player account is debited in the amount of a wager and concludes when the player account is credited with the amount of winnings, in the case of a winning bet or the player loses the game; "responsible Member of the Executive Council" means the member of the Executive Council of a Province responsible for gambling in that Province; "SABS" means the South African Bureau of Standards referred to in section 3 of the Standards Act, 2008 (Act No. 8 of 2008); "SANS series standard" means the collection of standards for gaming equipment published by SABS; "sports" or "sporting event" means any contest, match, competition, tournament or game, usually attended by the public, and "sport" has a corresponding meaning; "sports bet" means a bet on the result of any sporting event wherever held and includes betting on the individual performance of any person competing in any sporting event or on the performance of team members or on any other measure connected with determining the result of any sporting event, and "sports betting" has a corresponding meaning; "spouse" means a person's- (a) partner in a marriage; (b) partner in a customary marriage; (c) partner in a civil union; or (d) partner in a permanent relationship in which the parties live together in a manner

12 14 No GOVERNMENT GAZETTE, 23 APRIL 2014 resembling a marital partnership or customary union; "this Act" includes the regulations and any rules made by the national board in respect of remote gambling; "valuable consideration" means- (a) merchandise, property, a cheque, a token, a ticket, electronic credit, credit, debit or an electronic chip, or similar object; or (b) any other thing, undertaking, promise, agreement or assurance, whether it is transferred directly or indirectly, unless the context indicates a contrary intention; "virtual gambling game" means a gambling game, the playing of which is based upon an artificially generated depiction of a process, a horse race, a sporting event or other event or contingency, comprising of- (a) images generated by computer so as to resemble all or part of a process, a horse race, a sporting event or other event or contingency, which might occur in reality and which might involve actual people, real animals or physical things; and (b) the result of which is determined by a computer software programme, such as, but not limited to, a random number generator; "web site" means any location on the Internet containing a home page or web page. Purpose of Act 2. The purpose of this Act is to- (a) provide a legal basis for the regulation and control of all remote gambling activities; (b) preserve the integrity of the Republic as a responsible global citizen by ensuring an efficient and effective remote gambling regulatory regime; (c) promote the development of a responsible remote gambling industry in the Republic; (d) ensure that all remote gambling activities are conducted responsibly, fairly and honestly; (e) ensure that all players are treated fairly and that the privacy of a player is respected; (f) prevent minors and other vulnerable persons from being exposed to the negative effects of gambling; and (g) prevent remote gambling from being a source of, or associated, with crime or disorder, or being used to support crime, disorder or money laundering. Application of Act and other laws 3. (1) This Act does not apply to an activity that is regulated in terms of the Lotteries Act, 1997 (Act No. 57 of 1997) or any remote gambling activity offered, played or available to be played in any licensed casino, bookmaking or totalisator's premises, in instances where the holder of such licence is authorised to make such remote gambling activity available for play in the Republic. (2) The granting of any licence in terms of this Act does not relieve the licensee from complying with any other law or legal requirement in relation to the business in question, or any applicable provision of the National Gambling Act.

13 STAATSKOERANT, 23 APRIL 2014 No (3) This Act regulates remote gambling in the Republic of South Africa which may only be conducted via a remote gambling operator licensed in terms of this Act. (4) If any piece of remote gambling equipment, used in the provision of a remote gambling activity which is offered in or made available for play to persons in the Republic, then this Act applies to the provider of such remote gambling activity or the person making such remote gambling activity available. (5) A player located outside of the Republic is deemed to be gambling in the Republic when he or she registers as a player of a remote gambling operator licensed in the Republic. CHAPTER 2 PROHIBITED REMOTE GAMBLING AND STATUS OF REMOTE GAMBLING DEBT Unlicensed remote gambling activity unlawful 4. A person may not engage in, facilitate or make available a remote gambling activity unless such remote gambling activity is provided by a licensed remote gambling operator in terms of this Act. Remote gambling in relation to illegal activities unlawful 5. A person may not - (a) engage in, conduct or make available a remote gambling activity if the outcome of that activity depends directly, indirectly, partly or entirely on a contingency related to an event or activity that is itself unlawful in terms of South African law; (b) permit any remote gambling equipment or remote gambling software under the person's control to be used for the purposes of a remote gambling activity contemplated in paragraph (a); (c) maintain or operate any premises, whether or not such premises are licensed premises, for the purposes of a remote gambling activity contemplated in paragraph (a); or (d) permit any premises under the person's control, whether or not such premises are licensed premises, to be used for the purposes of a remote gambling activity contemplated in paragraph (a). Unlicensed use of premises unlawful 6. Despite any other law, a person may not maintain or operate any premises for the purposes of a remote gambling activity, unless that remote gambling activity in, on or from those premises has been authorised in terms of a licence under this Act. Enforceability of remote gambling debts and forfeiture of unlawful winnings 7. (1) Despite any other law - (a) a debt incurred by a person, other than an excluded person, subject to paragraph (c)(ii), or a minor, in the course of a remote gambling activity that is licensed in terms of this Act, is enforceable in law; (b) a debt incurred by a person in the course of any remote gambling activity that is

14 16 No GOVERNMENT GAZETTE, 23 APRIL 2014 unlawful in terms of this Act is not enforceable in law; (c) a debt incurred in the course of a remote gambling activity- (i) by a minor is not enforceable in law; or (ii) by an excluded person is not enforceable in law, unless that excluded person gained access to that remote gambling activity by fraudulently claiming to be a different person; and (a) an informal bet, as defined in the National Gambling Act, is not enforceable in law. (2) A person must not knowingly pay any winnings from a remote gambling activity to - (a) a minor; (b) an excluded person; or (c) any other person who won those winnings in a remote gambling activity that is unlawful in terms of this Act. (3) Any person who is prevented from paying winnings referred to in subsection (2) must remit those winnings to the national board in the prescribed manner and form, to be held by the national board in trust, pending a decision in terms of subsection (4). (4) Upon receiving any winnings under subsection (3), the national board must investigate the circumstances of the relevant remote gambling activity, and either - (a) deliver the winnings to the person who won them, if the national board is satisfied that the remote gambling activity was lawful, and the winner was not a minor or excluded person at the time of the activity; or (b) apply to the High Court for an order declaring the winnings to be forfeited to the State. CHAPTER 3 PRIZES AND REMITTANCE Payment of prizes and remittance of profits and winnings 8. (1) If a player in a remote gambling activity conducted by a remote gambling operator wins a monetary prize, the remote gambling operator must credit the amount to the player account. (2) If a player in a remote gambling activity conducted by the remote gambling operator wins a non-monetary prize, the remote gambling operator must- (a) have the prize delivered by courier or by post to the player; or (b) give the player written notice of an address within the Republic where the prize may be collected. (3) If a non-monetary prize in a remote gambling activity conducted by a remote gambling operator has not been collected within a year after notification to the player, at the place where it may be collected, the remote gambling operator may dispose of the prize by public auction or tender or in some other way approved by the national board and must- (a) pay for the disposal of the prize from the proceeds of the sale; (b) pay the remainder of the proceeds into the player account; and (c) if there is no current player account, subject to an order of the High Court for the forfeiture of such funds, pay the funds over to the State. (4) If a claim for a prize in a remote gambling activity is made to a remote gambling operator

15 STAATSKOERANT, 23 APRIL 2014 No within a year of the date of identification of the player, the remote gambling operator must- (a) settle the claim; or (b) if the remote gambling operator cannot settle the claim immediately, the remote gambling operator must, by notice in the prescribed manner and form, immediately inform the claimant- (i) of the remote gambling operator's inability to settle the claim; and (ii) that the claimant may, within 10 days of receiving the prescribed notice, request the national board, in the prescribed form, to resolve the claim. (5) The claim against the remote gambling operator lapses if- (a) it is not settled within a year from the date of identification of the player; and (b) after a diligent search, the remote gambling operator has not located the player. (6) If there is a dispute arising out of a remote gambling activity or any matter in relation thereto, either party may, within the prescribed period, refer the dispute to the national board for resolution. Remittance to foreign nationals and external companies 9. Subject to exchange control regulations and taxation laws - (a) a foreign national player may remit prize money to a foreign destination; and (b) an external company that is a licensed remote gambling operator in terms of this Act, may remit dividends or profits to a foreign destination if the external company is able to meet its financial commitments in terms of this Act, which include prize money and other liabilities, in the Republic. CHAPTER 4 RESPONSIBILITIES AND FUNCTIONS OF THE PROVINCIAL LICENSING AUTHORITIES AND THE NATIONAL BOARD Powers and functions of provincial licensing authorities in respect of remote gambling 10. Each provincial licensing authority, within its jurisdiction, must- (a) accept and review applications for any of the remote gambling licences referred to in section 15; (b) make a recommendation to the national board in terms of section 19(2); (c) consider whether any conditions should be imposed on an applicant for a remote gambling licence and if so, recommend to the national board that such conditions be imposed; (d) undertake or instruct any person, law enforcement agency, gambling regulatory agency or company to undertake any investigation or inspection necessary to determine the suitability of an applicant for a remote gambling licence; (e) in its discretion, grant or refuse any request made by a remote gambling operator or manufacturer, supplier or maintenance provider to relocate their business premises to other premises within the Province; 0) conduct an enquiry into any alleged contravention of this Act and take appropriate action against any licensee or any person, which may include- (i) instituting legal action against such licensee or person; or (ii) imposing a fine or penalty on such licensee or person provided that the amount of such fine or penalty does not exceed the prescribed amount;

16 18 No GOVERNMENT GAZETTE, 23 APRIL 2014 (g) conduct hearings, call for the attendance of witnesses at such hearings and demand the production of any books, records and any other documents which, in the opinion of the provincial licensing authority, have been used in connection with or will reveal a contravention of this Act; (h) monitor the activities of remote gambling operators, persons associated with remote gambling operators and persons who are in a position to exercise direct or indirect control over remote gambling operators or persons associated with such operators; (i) monitor all remote gambling activities within its Province; and (j) perform any other function or exercise any other power which the responsible Member of the Executive Council may empower the relevant provincial licensing authority to perform or exercise. Responsibilities of provincial licensing authorities 11. Each provincial licensing authority, within its jurisdiction, is required to- (a) take reasonable steps to ensure- (i) that unlawful activities relating to remote gambling and unlicensed remote gambling activities are prevented, detected, investigated and prosecuted; (ii) that undertakings made by licensees holding a licence to make remote gambling activities available, are carried out to the extent required by the licence; (iii) that employees within the remote gambling industry are licensed to the extent required by this Act; (iv) that each item of remote gambling equipment or remote gambling software, being used or made available for use by a licensee, is registered and certified; and (v) the complete and timely collection and remittance of provincial taxes, levies and fees relating to remote gambling activities; (b) inspect web sites on which remote gambling activities are conducted and inspect premises where remote gambling equipment and software are located; (c) inspect remote gambling equipment and remote gambling software used for any activity that is permitted in terms of a remote gambling operator licence; and (d) supervise and enforce compliance by licensees with the obligations of accountable institutions in terms of the Financial Intelligence Centre Act, to the extent required by that Act, in so far as it relates to the remote gambling industry. Information to national board 12. Each provincial licensing authority must- (a) inform the national board of all the applications received by it for a remote gambling licence; (b) after reviewing the applications received for a remote gambling licence, submit the applications and any supporting documents to the national board; and (c) indicate to the national board, together with any findings made following a review, investigation or inspection contemplated in section 10, whether or not the applicant complies with- (i) the provisions of this Act; and (ii) the norms and standards issued by the national board.

17 STAATSKOERANT, 23 APRIL 2014 No Responsibilities and functions of the national board 13. (1) The responsibilities of the national board in terms of this Act are to- (a) conduct evaluations of the performance of the provincial licensing authorities, so as to ensure that the national norms and standards in respect of remote gambling, developed by the national board in terms of this Act, are applied uniformly and consistently throughout the Republic; (b) assist the provincial licensing authorities to ensure that unlicensed remote gambling activities are detected and prosecuted; (c) develop national norms and standards for the remote gambling industry; (d) ensure that minors and vulnerable persons are protected in relation to remote gambling activities; and (e) ensure that the relevant provincial licensing authorities monitor, inspect and evaluate applicants and review applications for remote gambling licences. (2) In addition to any other powers, functions and obligations that the national board has in terms of this Act, the national board is empowered to- (a) receive applications for remote gambling licences put forward to it by the provincial licensing authorities; (b) consider and determine whether or not an application for a remote gambling licence should be granted; (c) evaluate whether the relevant provincial licensing authority has complied with this Act and whether any further conditions or restrictions must be attached to the remote gambling licence before issuing such licence; (d) monitor remote gambling activities in the Republic; and (e) conduct an enquiry into any alleged contravention of this Act and take appropriate legal action against any provincial licensing authority, any licensee or any other person. Register of remote gambling licences 14. (1) The national board must establish and maintain, in the prescribed manner and form, a register containing the information relating to every person to whom it issues a remote gambling licence. (2) The register must include the following information: (a) The full name and contact details of the licensee; (b) the activities permitted under the licence issued; (c) the address of the licensee's business premises and the address at which the remote gambling equipment is located; (d) the names of each person who has a shareholding of 10% or more of the total financial interest in a remote gambling licensee; (e) the date of expiry of the licence; and (fi any other information as prescribed by the Minister from time to time. CHAPTER 5 CATEGORIES OF LICENCES AND JURISDICTION Categories of licences 15. Any person may, in accordance with this Act, apply to a provincial licensing authority for- (a) a remote gambling operator licence;

18 20 No GOVERNMENT GAZETTE, 23 APRIL 2014 (b) a remote gambling manufacturer, supplier or maintenance provider licence; or (c) a remote gambling employment licence. Authority to issue licences 16. (1) The national board may, in accordance with this Act, issue to a person who complies with this Act- (a) a remote gambling operator licence; (b) a remote gambling manufacturer, supplier or maintenance provider licence; or (c) a remote gambling employment licence. (2) A remote gambling licence issued in terms of this Act applies throughout the Republic and authorises the licensee to conduct, engage in, or make available the licensed remote gambling activities anywhere within the Republic. (3) Subsection (2) does not preclude persons located outside of the Republic from registering as a player of the remote gambling operator and entering into a remote gambling transaction with a licensee in the Republic. Jurisdiction of provincial licensing authority 17. A person who wishes to apply for any of the licences referred to in section 15 must apply to the provincial licensing authority within the province - (a) in which the applicant ordinarily resides, or in which the applicant intends to take up employment under the licence, if the applicant is an individual; or (b) where the applicant's place of business within the Republic is or will be located. CHAPTER 6 APPLICATIONS, REFUSALS, DISQUALIFICATIONS, RENEWALS, CANCELLATIONS, TRANSFERS AND SURRENDER OF LICENCES Application for a remote gambling licence 18. (1) Any person who wishes to obtain a remote gambling licence in terms of this Act, must apply to the relevant provincial licensing authority for such a licence, in the prescribed manner, and must pay the application fee, as prescribed by the responsible Member of the Executive Council, to the provincial licensing authority concerned, provided that- (a) any person whose remote gambling licence has been cancelled, may not apply for a remote gambling licence for a period of 12 months from the date of such cancellation, and any person who has a shareholding of 10% or more in the business or premises of such applicant or licensee may not apply for a remote gambling licence within 12 months from the date of such cancellation if such person was the direct or effective cause of such cancellation; or (b) any person whose application for a remote gambling licence has been refused, as described in subsection (2), more than once or whose remote gambling licence has been cancelled more than once, may not reapply for a remote gambling licence within three years from the date of the most recent refusal or cancellation, and any person who has a shareholding interest of 10% or more in the business of such applicant may not apply for a remote gambling licence within three years from the date of the most recent refusal or

19 STAATSKOERANT, 23 APRIL 2014 No cancellation if such person was the direct or effective cause of such refusal or cancellation. (2) For the purposes of subsection (1), "refused" means an application which has been refused because the applicant is disqualified in terms of this Act from obtaining a remote gambling licence, or the investigation contemplated in section 21 has revealed that the applicant is not a fit and proper person to be granted a remote gambling licence under this Act. (3) The applicant for a remote gambling licence must furnish the prescribed information to the relevant provincial licensing authority when applying for a remote gambling licence in terms of subsection (1). (4) When submitting an application in terms of subsection (1), an applicant may identify any particulars, documents and information included in the application, which he or she regards as being confidential or which must not be disclosed to the public. (5) The provincial licensing authority may only make such particulars, documents and information referred to in subsection (4) available to a person who assists it with an investigation. (6) Any particulars, documents and information referred to in subsection (4) which the applicant has submitted as confidential must not be open to public inspection and must not be made available for public inspection. (7) On receipt of an application for a remote gambling licence, the provincial licensing authority concerned must, unless the application may not be processed because the provisions contained in subsection (1)(a) and (b) apply, institute the prescribed procedures for the processing of such applications. (8) Existing holders of a bookmaker, totalisator, casino or bingo licence or of a limited pay-out machine site licensed in the Republic are eligible to apply for a licence as a remote gambling operator or for a licence as a remote gambling manufacturer, supplier or maintenance provider in terms of this Act. (9) In instances where a provincial licensing authority determines that existing holders of a bookmaker, totalisator, casino or bingo licence or of a limited pay-out machine site licensed in the Republic are operating entirely via remote communication, such licences must be converted by the national board to a remote gambling operator licence provided that all the provisions of this Act have been complied with. (10) When reviewing an application for a remote gambling licence made in terms of subsection (1) or subsection (8), other than an application for a remote gambling employment licence, the provincial licensing authority must consider the economic and social development issues contemplated in section 53 of the National Gambling Act and the competition issues contemplated in section 54 of the National Gambling Act. (11) The provincial licensing authority must ensure and require of every licensed remote gambling operator that some part of the remote gambling equipment used by the remote gambling operator must be situated within the Province in which the application for the licence has been made.

20 22 No GOVERNMENT GAZETTE, 23 APRIL 2014 Process after receiving an application for a remote gambling licence 19. (1) The provincial licensing authority, upon receiving an application for a remote gambling licence in terms of section 18(1), must- (a) notify the national board of the application; (b) conduct an investigation as described in section 21, in order to confirm compliance with this Act or any other prescribed matters; and (c) conduct any prescribed hearings or other proceedings in respect of the application. (2) The provincial licensing authority must, after completing the investigations, hearings or other proceedings referred to in subsection (1), inform the national board in the prescribed manner - (a) that the applicant has complied with the requirements of this Act and the national norms and standards in respect of remote gambling and that they recommend the granting of the application; or (b) that they do not recommend the granting of the application together with reasons for such recommendation. (3) The provincial licensing authority must thereafter notify the applicant in the prescribed manner that it proposes to recommend to the national board- (a) not to grant the remote gambling licence applied for, together with reasons for its recommendation; or (b) to grant the remote gambling licence as applied for. Review of recommendation to issue remote gambling licence 20. (1) The national board, after receiving a notice referred to in section 19(2) from the provincial licensing authority - (a) must consider the application and the recommendations made by the provincial licensing authority and may rely on the information provided by the provincial licensing authority; and (b) may conduct an evaluation or investigation if there are reasonable grounds to believe that the requirements of this Act have not been met. (2) The national board, after considering the application and the recommendations of the provincial licensing authority, must advise the provincial licensing authority in the prescribed manner- (a) whether there are objections to issuing the remote gambling licence as recommended; or (b) whether the remote gambling licence will be issued as recommended. (3) If the national board intends to issue the licence as recommended, the national board must, where it deems appropriate, consider - (a) imposing particular or additional conditions before issuing the licence; or (b) altering any proposed conditions before issuing the licence. (4) If the national board advises the provincial licensing authority that it does not support the recommendation of the provincial licensing authority to issue a remote gambling licence as recommended, the national board must furnish a report to the provincial licensing authority - (a) setting out the reasons for not supporting the recommendation to grant the license; and (b) allow the provincial licensing authority the opportunity to resubmit the application.

21 STAATSKOERANT, 23 APRIL 2014 No Investigation of application by the provincial licensing authority 21. (1) Upon receipt of an application for a remote gambling licence in terms of section 18(1), the provincial licensing authority must undertake or cause to be undertaken all such investigations, including the inspection of any premises, it deems necessary to enable it to review the application comprehensively. (2) An investigation referred to in subsection (1) must establish whether or not the applicant- (a) is a fit and proper person ; (b) has any business association with any person or body or any association which, in the opinion of the provincial licensing authority, is not fit and proper; (c) has at any time, whether in the Republic or elsewhere, been convicted of any offence which, in the opinion of the provincial licensing authority, should be taken into account for the purposes of reviewing the application; (d) is an unrehabilitated insolvent; or (e) is disqualified from holding a licence in terms of section 26 or 27. (3) The provincial licensing authority may request the Provincial Commissioner of the South African Police Service, or his or her delegate, to assist in undertaking background investigations into an applicant for a remote gambling licence, his or her principal, any manager of the business concerned, or any person who has a controlling interest or any financial interest whatsoever in the business concerned. (4) The provincial licensing authority may, when conducting an investigation in terms of this section, disclose any document or information submitted in support of an application for a remote gambling licence to any person who, in the opinion of the provincial licensing authority, may be of assistance to it in conducting such investigation. (5) Any person who assists the provincial licensing authority in the manner contemplated by subsections (3) and (4), may not disclose any document or information whatsoever to any other person. Obtaining further information in connection with application 22. The provincial licensing authority may, by notice in writing, require an applicant for a remote gambling licence or any person whose business is to be directly associated with the proposed remote gambling activity of the applicant, to provide such additional information as the provincial licensing authority may require to enable it to review the application. Representations by municipalities and interested persons, and response by applicant 23. (1) The provincial licensing authority, when reviewing an application for a remote gambling licence, must invite municipalities within the province, interested persons or other bodies who wish to submit written representations in response to an application made for a remote gambling licence, to do so in the manner prescribed. (2) The provincial licensing authority must furnish any written representations, received in terms of subsection (1), to the applicant for his or her response in the manner prescribed.

22 24 No GOVERNMENT GAZETTE, 23 APRIL 2014 Application and representations open to public inspection and confidential information 24. (1) Any application, representation, response and further information lodged with the provincial licensing authority in respect of an application for a remote gambling licence must, subject to subsection (2) and section 18(4), be open to public inspection by interested persons during the normal office hours of the provincial licensing authority for the prescribed period. (2) The provincial licensing authority may determine that any document or information relating to- (a) the financial capacity of any person participating in an application; (b) the names of prospective employees of the applicant concerned; or (c) the business plans of an applicant; must not be open to public inspection. (3) The provincial licensing authority must, at the request of any interested person and on payment of the prescribed fee, furnish such person with a copy of or extract from any such application, representation, response or further information open for public inspection. Grounds for refusing a remote gambling licence 25. The national board must refuse to issue a remote gambling licence to an applicant who is disqualified from holding a remote gambling licence in terms of section 26 or 27 of this Act. Disqualifications for remote gambling employment licence 26. (1) A person is disqualified from being issued a remote gambling employment licence in terms of this Act, and from retaining or holding such licence already issued, if he or she - (a) is a minor; (b) is a public servant or political office bearer; (c) is listed on the register of excluded persons; (c/) is subject to an order of a competent court declaring that person to be mentally unfit or mentally unsound; (e) has at any time been removed from an office of trust on account of misconduct relating to fraud or the misappropriation of money; (f) has been convicted during the previous ten years, in the Republic or elsewhere, of theft, fraud, forgery or uttering a forged document, perjury, an offence under the Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 of 2004), the Prevention of Organised Crime Act, 1998 (Act No. 121 of 1998), the Financial Intelligence Centre Act, the Protection of Constitutional Democracy Against Terrorist and Related Activities Act, 2004 (Act No. 33 of 2004), or an offence in terms of this Act or applicable provincial law, and has been sentenced to imprisonment without the option of a fine, or to a fine exceeding the prescribed amount, unless the person has received a grant of amnesty or free pardon for the offence; (g) has been convicted during the previous ten years of any computer or computer software related crime; or (h) is an unrehabilitated insolvent. (2) A remote gambling employment licence issued in terms of this Act is automatically cancelled if the licensee becomes disqualified in terms of subsection (1) at any time after the licence was