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Examining the Legal Framework Surrounding Online Poker in South Africa

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The history of poker in South Africa is long and fascinating. The game was introduced in the country by early European settlers and has since built up a strong following amongst its citizens. Nevertheless, despite the game’s rich history in the nation, its legal status has been far from clear.

When the country first announced its initial gambling laws, most casino games, including poker, were considered illegal. However, a licensing system introduced in the 70s provided room for the legalization of certain games, and luckily, poker fell into the category. But then came online poker in the late 90s, the new technology that took the world by surprise, and while it took several years for online poker to gain traction in South Africa, it finally did in the early 2010s. Since then, the country has become one of the fastest-growing online poker hubs in Africa.

However, this growth has been heavily stunted by the very complicated regulations surrounding online poker in the country. Here, we’ll examine the legal framework surrounding online poker in South Africa and how the various regulations have shaped the industry. Read through to uncover the thrilling world of South African online poker.

History and Current Legal Status of Online Poker in South Africa

In 2004, the National Gambling Act was introduced in South Africa to replace the country’s outdated and inadequate gambling regulations. This was after the boom of online gambling and online poker in the country. According to The National Gambling Act 2004, all forms of online gambling were illegal, including online poker.

However, this Act did little or nothing to stop the fast-growing technology, and in a bid to cash in on the substantial annual revenue generated from online poker, the National Gambling Amendment Act of 2008 was published. With this Act, online casino games like poker would be legalized, and platforms would have to obtain a license from the government to operate.

Despite the multiple benefits of this Act, it was heavily confronted by anti-money laundering agencies and land-based casino operators who feared that the legalization of online poker would affect their revenue stream. After a prolonged legal battle, the Act was abandoned, but the industry continued to grow, albeit slowly.

In late August 2010, the North Gauteng High Court ruled a final judgment on the legality of online gambling in the country. According to the ruling, any form of online gambling was illegal, even if they were hosted on servers outside the country’s borders. Unlike other gambling regulations that targeted only site operators, the ruling confirmed that even players who played poker on these sites were in danger of the law. Guilty parties could face up to 10 years in prison or pay a hefty R10 million fine.

Online in Poker in South Africa, What You Must Know

Recently, there have been talks about reviewing the National Gambling Amendment Act of 2008 to give room for interactive gambling like online poker; however, no concrete conclusion has been reached.

Also, the 2010 court ruling did not explicitly specify the types of online gambling that were considered illegal.

In most countries, online poker rules are usually separated from other online gambling rules due to their nature. Operators and poker fans have managed to exploit this gray area. Currently, dozens of online poker sites offer services to players in South Africa, and so far, nobody has gotten into trouble with the government.

What the Future Holds for Online Poker in South Africa 

Online poker is fast growing around the world, especially in Africa. It’s now becoming increasingly difficult for countries to ignore the immense economic benefits of legalization, and soon, the South African government will have to sit and have that conversation.

Early this year, Geordin Hill-Lewis, a member of the South African Parliament, urged the government to take another look at the abandoned National Gambling Amendment of 2008. He later went on to introduce his Remote Gambling Act which is still being debated in Parliament today. This Act would revolutionize the online poker scene in South Africa and provide easier access to online poker and more revenue for the government.

The Bottom Line

Online Poker regulations in South Africa are a topic that has generated several debates in recent years. While many claim that the law prohibits all forms of online gambling, others argue that online poker wasn’t explicitly mentioned.

Nevertheless, the country doesn’t offer licenses to online poker sites, and players have to rely on offshore sites to play. So far, there have been no legal issues for players who play at offshore sites.

Fascinating numbers highlighting American games industry success

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Already famed for its thriving movie and music industries, the United States is renowned for exporting entertainment, consumed by audiences around the whole globe. But over the last couple of decades, online technology has completely reshaped how people access pretty much everything, including video games.

Hardly surprising when considering how gaming has become phenomenally popular, this particular sector of the wider entertainment industry has now overtaken the others, even eclipsing the combined revenues of both movie and music sales internationally. What’s more, the spheres of influence between these entertainment mediums is merging, evolving to bring diverse new experiences for consumers.

Gaming is now big business, which leads us towards looking at some intriguing numbers, highlighting why gaming has become such an engaging pastime. And when digging for specific data, the discovery of certain statistics can provide some fascinating insights.

Games development creates thousands of jobs

Whenever we are busy enjoying the games we play, most of us may be blissfully ignorant of how much work goes into their production, along with the huge number of people involved. To put this into some numerical perspective, according to statistical information via IBIS World, the US video games industry reached 268,698 employees in early 2023.

During the five years evaluated between 2018 and 2023, the gaming industry has achieved 3.5% annualized growth on average, with further consistent increases in employment projected over the coming years. Producing video games has also become more profitable for companies, as the average business reports that revenue per employee has increased considerably.

Most interesting of all, data from studies has indicated that an average video games business has just one employee, which suggests that small and independent game studios are continuing to thrive. But whether small or large, the general consensus is that development studios are consistently expanding, always on the lookout for talented and creative people to build their games.

Online slots with massive progressive

When considering the growth of the games industry across America, the iGaming sector is one that is currently booming, largely thanks to states around the country legalizing access to popular online casinos. And while visitors to gaming sites have plenty of options to choose from, slots are by far the most played games in the digital realm.

Easily the most famous are the Mega Moolah and Mega Fortune slots, which offer players the chance to land huge progressive jackpots, based upon the latest guides from Legit Gambling Sites experts. They carefully review and rate the best online casino websites, focusing on the most honest and reputable operators, where the biggest choice of progressive slots can be found.

But what kind of jackpot prizes are up for grabs? Well, the Book of Atem progressive slot has reportedly paid out $18.4 million in 2023, while the Atlantean Treasures Mega Moolah slot has been hit for a jackpot spin worth $4.7 million. Looking at such incredible payout numbers, it’s easy to comprehend why players across the US are eager to try their luck, due to progressive slots regularly dishing out massive jackpots.

Mobile gaming continues to boom in 2023

Having already seen how video games employ thousands of people, and that some casino games can also turn players into millionaires, the diversity of platforms is also changing the way gamers interact with popular titles. No platform has grown faster than mobile, now that players can access their favorite games on the go, and from practically any location.

And right now this year, the most popular mobile game hails from a studio in California, and it has taken the US and the whole world by storm. Roblox was originally launched for Windows back in 2006, becoming available for iOS devices in 2012 and then Android platforms in 2014. Current data reports from Statista now show that Roblox tops the mobile gaming charts, generating more than $207 million between January and April of 2023.

Such revenues are a clear indication of the fandom surrounding Roblox, which boasts over 230 million registered players this year, including an average surpassing 20 million players daily. Recent data also shows that around 30% of the player base comes from the US and Canada, which is undoubtedly the single biggest portion overall.

Sustained growth predicted for the years ahead

Unlocking new opportunities for growth is essentially what drives video game publishers, which is entirely why the Morgan Stanley gaming outlook makes for interesting reading. The renowned financial institution has predicted entirely new levels of growth and advances, forecasting that 2023 will be a strong year for games industry, albeit with some important caveats.

While their analysis indicates that 2022 was quite sluggish, developers and publishers are bullish this year, which undoubtedly accounts for the boost in employment number associated with the games industry in the United States. Better productivity and increased efficiency are some of the reasons highlighted, accompanied by the perception of improvements in the overall quality of products being launched.

One of the key focal points for optimism is the next-gen console market, bringing a rush to launch new games for these powerfully optimized platforms, bringing an important boost for the triple-A developers and publishers. Given that one major console manufacturer has already sold roughly 37 million units this year alone, they will all need exciting new games to accompany them, fuelling instant demand.

The Invisible Layer Strategy, Design Thinking And Zero-Fee Banking

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OPay, a payment company, began with a business strategy I have termed the Invisible Layer Strategy. Simply, the company started by subsidizing transportation services by making ORide (motorcycle ride hailing), OBus, OKeke, etc,  very affordable. It used that to acquire a  massive user base for its paytech unit. The plan was never to run those transportation units because their margins were small, and also scaling was an issue. But they provided one thing: they forced users to download the OPay app to get those free or discounted rides.

In this piece, I posited that even though OPay may be losing money in the transportation unit, it has a promise on the payment one under a Double Play Strategy which I have written extensively in Harvard. Simply, OPay will make money for the business even though ORide, OBus, etc may not.

One day, OPay hit one million users and that was the inflection point. One by one, it exited, and closed ORide, OBus, etc and then focused on the payment which was the original vision.  To evaluate this strategy, you have to consider what it would cost OPay to use advertising to onboard one million users in that sweet segment it has pursued (people who pay, withdraw, pay making it easier to capture value via fees).

What are you doing to acquire customers?

Design Thinking And Zero-Fee  Banking

When you pay that bill from your bank account, you pay a bank charge. But when you pay with one fintech’s app, connected to the same bank account, you do not pay any fee. How did that fintech execute that invisible layer strategy? I explain:

I will explain what OPay is doing at the technology layer within a well orchestrated design thinking framework. Consider the possibility that OPay has bank accounts in all banks in Nigeria. If a customer ( paying for DStv) pays through it, it will simply receive money from the customer to the specific corresponding bank account it maintains in the customer originating bank. At the same time, it will pay the merchant to the merchant’s bank account using its (OPay) funds in the same bank as the merchant’s. 

Because wallet-to-wallet transfer in Nigeria does not attract a fee, this two-sided intra-bank transaction (inflow and outflow) does not cost OPay and its customers any transaction fee.OPay, relying on bank APIs, automates this protocol. This is Option 1. There are other options on how to execute this including having a holding quasi-entity.

Indeed, this also makes its confirmation fast and seamless since no inter-bank settlement takes place at scale. The only drawback is that funds may not be efficiently utilized (not actively working for you) as you must have funds reserved for settlements. Needless to add that you have to be loaded (yes, have funds) to execute this playbook.

How can you save your customers money? No better growth strategy than that in Nigeria in this season of many fees and charges. Use design thinking and invent a new business playbook for that company.

Comment on Feed

Comment 1: I just saw this post after concluding a transaction with Opay. I don’t understand the intricacies of their business, but whatever it is, they should keep it up. My only regret is why I didn’t start using the app earlier, especially during the cash scarcity. Their transactions are swift, free and seamless.

My Response: They run a settlement fee system across all banks in Nigeria which means they have no connection to NIBBS. With that, they pay no fee.

Comment 2: Prof, isn’t it possible that Opay didn’t actually have Fintech in mind from the outset but simply began to focus on the sector after they’d found its huge potential?

Take Nokia for instance. Nokia was originally a paper mill when it was formed in the late 19th century but delved into phone manufacturing after 100 years. Same with Nintendo (which used to produce handmade playing cards) and Sharp which initially focused on producing belt buckles before becoming an electronics company!

My Response On Day 1 when OPay company launched ORide, the uniforms the riders wore did not have ORide, OBus, etc. Everything was branded OPay. If you saw their riders, everything was OPay. The app was OPay, not ORide, OBus. That was a clear indicator that right from Day 1, the destination was OPay

[Updated] NNPCL Issued Petrol Import License to Dangote Weeks After the Launch of Dangote Refinery

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Editor’s Note: This has been debunked; no license was issued to Dangote Refinery according to the government.


The Nigerian National Petroleum Company Limited (NNPCL) has issued a license to the Chairman of Dangote Group Aliko Dangote, to import petroleum products, weeks after Dangote Refinery was commissioned.

Energy Times reports, citing sources at the presidency, that the license will see Dangote importing refined Premium Motor Spirit (PMS) into Nigeria. According to the report, the imported fuel would be discharged at the Dangote barge, where it will be pumped into tanks from.

The decision, which is understood to be born out of Dangote Refinery’s unreadiness to refine petroleum products, will likely shift the sole importation of PMS from the NNPCL to Dangote. PMS imported by Dangote is expected to sell at a market-dictated price to marketers as work continues at the refinery, per the report.

Dangote Refinery, with the world’s largest production capacity of 650,000 barrels per day, was commissioned last month in Lekki, Lagos. Dangote promised during the launch, which was led by former President Muhammadu Buhari and graced by dignitaries from across Africa, that products from the refinery will hit the market by the end of July or August.

“Your excellencies, distinguished guests, our first product will be in the market before the end of July or beginning of August this year,” Dangote had said during the commissioning. “We have built a refinery with a capacity to process 650,000 barrels per day in a single train which is the largest in the world. We have selected the best plants, equipment, and the latest technologies from across the world.”

However, the promise appears unrealistic as the Dangote Refinery still has a lot of work to do to function at full capacity.

Findings revealed that the refinery was at the 88% completion stage with some equipment still being expected to be delivered by their manufacturers while those that have been fitted were yet to pass the integrity test at the point of commissioning, according to Energy Times. The report added that in addition to the above-mentioned backdrop, works on production lines, including electrical works, are largely behind schedule.

“With equipment still being expected and an integrity test yet to be conducted, I don’t see the refinery coming on stream until March 2024, the main reason why Dangote was granted a permit to import fuel pending the completion of work on the refinery,” Energy Times quoted the source as saying.

The $19 billion Dangote refinery boasts of 4.742 billion liters storage capacity, the biggest in Africa. The refinery’s 1,100 kilometers pipeline infrastructure is said to be the largest in the world, with the capacity to handle three billion standard cubic feet of gas per day.

Nigerians are largely counting on the refinery to mitigate the cost of PMS, following the removal of fuel subsidy by President Bola Tinubu last month which shot the prices up to N570 per liter. Thus, the report that the Nigerian people will have to wait until next year for the refinery’s products has dashed the hope of many.

As an alternative, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been called upon to issue importing licenses to companies and individuals with the capacity to import petroleum products. The NMDPRA said last month that it is ready to issue licenses to interested companies. The move, which will ensure competition in Nigeria’s oil market and dismantle the NNPCL’s importation monopoly, appears to have been impacted by the newly-issued Dangote’s PMS import license.

The NNPCL has served as Nigeria’s sole importer of petroleum products for some years now, which suggests that issuing a Dangote petrol import license means handing the monopoly over to Africa’s richest man.

According to Energy Times, Dangote was chosen to bring in the product due to NNPCL’s 20% minority stake in the refinery. The Nigerian National Petroleum Corporation (NNPC) is investing $2.76 billion in the plant, with the first payment being made in cash.

The second payment will be made through crude oil sales, while the final payment will come from the profits generated by the company.

Approximately one-third of the payment will be made through the supply of crude oil, with a deduction of around $2 and some cents. The remaining one-third, amounting to $850 to $900 million, will be paid from the business’s profits.

Parallels between rap music and gambling

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Rap music and gambling are two distinctly different areas of entertainment that, at first glance, may seem unrelated. However, a closer look reveals some surprising parallels between the two worlds.

Most rappers often refer in their lyrics to a life of luxury, wealth, and achievement. This is due to the ambition of the artists and their pursuit of success. They use images of money and luxury to express their goals and ambitions. Gambling games such as casinos and poker become metaphors for taking risks and being able to double down on their accomplishments.

An example is famous rapper Jay-Z, who, in his song “Empire State of Mind,” sings: “Yeah, I’m out that Brooklyn, now I’m down in Tribeca / Right next to De Niro, but I’ll be hood forever.” In this line, Jay-Z mentions Tribeca, the New York City neighborhood where the famous Tribeca Grand Hotel casino is located. This reference emphasizes his success in life and connects him to the atmosphere of luxury and gambling.

Mention can also be made of Drake, who, in his song “Started From the Bottom,” talks about his road to success: “Started from the bottom, now we’re here / Started from the bottom, now my whole team fucking here.” In this line, Drake describes his aspiration to reach the top and compares it to the casino game, where the beginning can be humble, but with luck and effort, he can reach the top. It is known that the rapper himself also likes to try his luck. However, the celebrity prefers big bets on sports and land-based casinos and does waste time on no deposit casinos Canada on the Internet, as do many of his compatriots who get lured by bonuses.

Another example, but not from the rap world, is Lady Gaga’s hit song “Poker Face,” in which she sings: “Can’t read my, can’t read my, no, he can’t read my poker face.” In this line, Lady Gaga associates her power and control with a poker player who cannot recognize her intentions.

Examples like this from contemporary music and 90’s hits can be cited for a long time, as many performers (especially from the rap genre) build their image around money, wealth, and the need to bathe in luxury.

Rap music and gambling have unexpected similarities in their images and motifs. Rappers use symbols of wealth and gambling to express their ambition, risky lifestyle, and desire for success. Casinos and poker become metaphors for risk-taking and the possibility of achieving wealth. The examples of foreign rappers and quotes from their songs show how these parallels are expressed in the world of rap music.