S. African gov't warns of harsh punishment for on-line gambling

The South African government on Monday warned of harsh punishment for any person offering or operating on-line gambling.

"Perpetrators, whether operating an illegal establishment or participating as individuals could be liable to a fine of up to 10 million rand (about 87,000 U.S. dollars) and/or 10 years in jail," the Department of Trade and Industry (DTI) said in a statement.

Operating on-line gambling "is committing an offense under the law," the department said.

The DTI made it clear that there is no intention on the part of the government to propose the legalization of on-line gambling in South Africa.

There are arguments that the government is losing on the opportunity to generate revenue through on-line gambling in the forms of taxes, however generating tax revenue cannot be at the expense of the South African citizens, some of whom are over indebted and living in poverty, the DTI said.

The department rejected a proposal by the opposition Democratic Alliance (DA) to legalize on-line gambling.

"In our view no amount of control will adequately curb the harm that may be caused to South African citizens by on-line gambling, hence we reiterate that it must remain a banned activity," the DIT said.

The department said on-line gambling is associated with a number of social ills, especially when on-line gambling occurs in unregulated and unsupervised locations.

The government allows other forms of gambling that take place under strict supervision in locations such as casinos that are designated for such activities.

The DTI urged the public to report on-line gambling and any other form of illegal gambling activities to the police. Endi