Online Lottery in South Africa (2024)

South African Online Lotteries (2024)

Before 1997, Lotto was a little-known gambling activity among the South African masses. The country lacked a legal framework that regulated the online lotto industry, save for a few attempts in the now defunct homeland of Ciskei where Score-A-Lot operated Video Lottery Terminals (VLT) in the year 1991. 

The lotto industry took a turn with the introduction of The Lotteries Act, No. 57 of 1997 which was enacted to regulate and prohibit lotteries and sports pools and to officially establish the National Lotteries Fund. Of importance is to note that the Act expressly provided that there would be only one lottery system in South Africa. 

Following the enactment of the Act, various gambling companies came together to bid for the licenses to run the national lotto. Uthingo Management, which was formed in 1996, won the license to operate Lotteries in the country. The main duty of the company was to raise money for the National Lottery Distribution Trust Fund. Uthingo owned 70% of the company ownership locally while the remaining 30% were invested by international investors and players. The main role of the foreign owners was to provide the tools and knowledge to run the lottery system effectively. 

Uthingo ran the lottery until the Gidani consortium took over from them in September 2007, with a license to run the lottery for 7 years. Gidani introduced scratch cards as part of the lotteries and ran the lottery industry until 2015. In the same year, Ithuba Holdings Limited was given the license to operate the lotto. 

Currently, The National Lottery is operated by Ithuba, the 3rd license holder for the state lottery on behalf of the National Lotteries Commission (NLC). In 2019, Ithuba raised more than USD100 million in support of charitable causes. The NLC, through the National Lottery Distribution Trust Fund (NLDTF), utilized the funds raised in 3 areas: charitable activities, sports and recreation, and arts and culture.

The legal framework of Lotto in South Africa

The Lotteries Act, No. 57 of 1997 is the primary legislation that was enacted with the following primary objectives:

• Defined what was Lottery in South Africa
• Create the National Lotteries Board and how it should operate. 
• Provide for the process of awarding licenses to conduct the National Lottery.
• Establish the National Lottery Distribution Trust Fund (NLDTF). 
• Outline the comprehensive approach to the distribution of NLDTF funds.

Additionally, the Act provided for the regulations of other lotteries, including society lotteries and private lotteries. The Law also deals broadly with regulating society lotteries which are a means of fund-raising for not-for-profit organizations. It is worth noting that in addition to the regulations on the implementation of the Act, various penalties are listed for those found in breach of the lottery laws in South Africa.

The 1997 Act was amended by the Lotteries Amendment Act, No. 46 of 2001, and further by the Lotteries Amendment Act, No. 32 of 2013 with the provisions touching on-

1. The establishment of a National Lotteries Commission 
2. Removal of the reconstruction and development program as a category entitled to be allocated money from the fund
3. Provisions touching on the licensing of an organ of state to conduct the National Lottery
4. Provide a transparent accountability process for the distributing agency 
5. Professionalization of the distributing agency
6. Elimination of the overlapping of roles between the Minister and the board
7. Certain definitions
8. An extension of the powers of the National Lottery Board

Online Lottery Legislation

It is evident that the online market is not well legislated and there seems like it could be illegal. However, the general gambling legislation remains very wide, and it is on these premises of the gaps in the law that the South African National Lottery avails its online products to the local market. A number of provisions within the local legislation serve for regulating the work of the online lotto sites in the country. Now that we have given the historical background and the legality of the online lottery, it is important that we tell you the criteria we use when picking the best online lotto sites in South Africa.

How we Choose the Best Online Lottery Site

1. Legality and safety of money and data - We always check for the sites that have been regulated and licensed to offer gambling services by the government and any other applicable authority. Additionally, we look at the measures that they have put in place to secure the money that you send to them, including but not limited to having an insurer for big lottery wins. Lastly, we consider the levels of encryption on the website and online platforms, to ensure that your data is protected. If a site satisfies most of the above conditions, we are likely to rank them highly.
2. Accessibility - the level of accessing the platforms to bet also plays a major role on how a bookmaker will rank; think of how easy or hard it is to navigate the website when placing bets, the time it takes to load, and also the space needed on a device for installation. A site that has apps for both Android and iOS will definitely come before those that do not have one or both.
3. Products offered - sites that have a variety of options to select from tend to come first. We look at the sportsbook options, where bookies will place their bets, as different people have different tastes and preferences. A variety of options attracts more people, and we are therefore inclined to rank them higher. 
4. Promotions, bonuses, and jackpot - it is important that a lottery site awards people who play with them, be it when joining or during their existing relationship. In this regard, we always compare the frequency and sizes of promotions and bonuses and rank punters. Additionally, bookies who have a big jackpot that has been won severally tend to rank highly. 
5. Customer care and user reviews - the modes of being accorded help by the company you stake on matter a lot. Where a site has options to seek help, including live chats and 24/7 customer care. We also go through thousands of past reviews by customers who have used the site and in the first instance consider where the admins respond to queries on time.