Western Cape challenges national government over controversial gambling bill

A new political divide has emerged between the national government and the Western Cape regarding significant changes to South Africa's gambling laws, as the province has opposed several provisions of the National Gambling Amendment Bill.

The provincial legislature’s finance portfolio committee heard presentations from the trade, industry and competition department (DTIC) and the Western Cape Gambling and Racing Board (WCGRB) on Tuesday.

The bill includes a handful of changes that stand out.

Right at the top is a plan to ban all dog-racing bets, scrapping the practice entirely in SA.

The bill also gives government the power to grab “unlawful winnings” immediately, meaning payouts from illegal or unlicensed gambling can be seized on the spot without a lengthy legal fight.

It also pushes for far tighter control over gambling machines and electronic bingo, tougher limits on advertising, and a major power shift that moves oversight of lottery-related bets from provinces to national government.

The DTIC said SA’s gambling sector has expanded far beyond what the 2004 Act anticipated, and that national tools need to be updated to keep pace.

The DTIC said the bill aims to tighten punter protection, improve enforcement and resolve long-running deadlocks in the National Gambling Policy Council.

But the WCGRB, which delivered a detailed submission, pushed back on several of the proposed amendments.

The board warned that key changes would override provincial powers, disrupt systems already functioning well in the Western Cape and impose unnecessary costs on operators.

One of the strongest objections centred on government’s plan to extend the National Central Electronic Monitoring System (NCEMS) beyond limited pay-out machines to include casinos, bingo and betting.

The WCGRB told the committee the province already operates its own approved and certified monitoring systems, designed specifically for the Western Cape’s gambling environment.

“A national central monitoring system for all types of gambling is simply not viable nor desirable," it said.

"It will lead to an unjustifiable levy/costs imposed on operators, for the benefit of the NGR and the operator of the NCEMS."

The board also cautioned that extending NCEMS would “usurp” provincial powers granted under Western Cape law and replace systems that are already tested, audited and well understood by both regulators and operators.

Another major concern was a clause allowing national inspectors to investigate illegal gambling “with or without” provincial inspectors.

The WCGRB said this wording creates a direct conflict with existing provincial responsibilities and risks duplication, confusion and weaker enforcement. 

The board recommended that the phrase “or without” be removed entirely so that enforcement remains aligned with the structure of the current Act.

The DTIC explained the bill would allow the National Gambling Regulator to declare unlawful winnings forfeited without going to the high court, arguing that the existing process is time-consuming and costly.

But the WCGRB told the committee that unlawful winnings have always been forfeited to the province under Western Cape legislation, and that this principle should remain unchanged.

The DTIC wants motions to be passed at a second meeting if the first lacks quorum.

The WCGRB, however, argued this contradicts the consensus-driven spirit of the Act and risks decisions being pushed through without full provincial participation.

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