How To Start A Gambling Business In South Africa
What is Gambling?
Gambling, the betting or staking of something of value, with consciousness of risk and hope of gain, on the outcome of a game, a contest, or an uncertain event whose result may be determined by chance or accident or have an unexpected result by reason of the bettor’s miscalculation.
How To Start A Gambling Business In South Africa
1. You can start off with renting an appropriate room that should be spacious enough to fit all the equipment and staff facilities. The main catch here is the location. When looking for a place, you should primarily consider easily accessible places with high traffic and lack of similar businesses nearby. A city center is always a perfect option for an Internet cafe.
2. Buying or renting equipment. The equipment for a cyber cafe almost entirely consists of personal computers with stable high speed Internet provided by Wi-Fi routers. The number of PCs depends on your financial possibilities and how much space you have at your disposal. It is worth mentioning that, even though computers will be your main expense, there is no need in buying expensive equipment, as modern software can perfectly work on low-budget PCs, which brings us to the next step:
3. Selecting software for your cafe. In Internet cafes, software serves as a provider of games, a management and promotion tool, a security system and what generally will administer your business. Consequently, this task must be approached with full attention paid. There are many pieces of software worthy of implementing, the main issues here are selecting the best one for your case and then being able to use these programs correctly. Both problems can be solved by setting up a partnership with experts in the high-risk entertainment field.
4. Integrating a payment system. There are two options to establish the way your clients will pay for your Internet cafe’s services, namely the cash and cashless methods. The first one involves hiring a cashier who will receive payments and give out the prizes. While this method is simple to set up for you, some clients may find paying in cash not that convenient. The second method requires you to open a bank account and purchase special payment terminals for money transactions.
Gambling and Licensing In South Africa
To obtain a licence for gambling in SA is no longer a difficult thing. It’s a straightforward process. There are gambling board, which are regulated by each province and the National Gambling Board as the supreme body.
You can obtain the national license if you’re applying as a manufacturer, supplier, maintenance supplier, or for those wanting to work within the gambling industry. The provincial license is only valid within a single province and it’s best suited for individual casinos.
You can apply for the two licenses at the provincial gambling boards through their official website or at their offices.
The entire application process can take up to 3 months and the cost of applications varies from province to province.
Frequently Asked Questions (FAQs)
How much is a gambling license in South Africa?
The initial licensing fee for a manufacturer’s license is R 120,000. The fee for a license renewal is R 80,000.
What do you need to start a gambling company?
To start a successful online gaming business, you will need the following:
- Knowledge of your market.
- Promotion and marketing.
- Website for promotions.
- A gambling license.
- A dedicated server.
- A professional iGaming software.
- A merchant account.
How do I get a gaming license in South Africa?
You can apply for the two licenses at the provincial gambling boards through their official website or at their offices. The entire application process can take up to 3 months and the cost of applications varies from province to province
How much does it cost to start a gambling website?
Prices for such software range from 10 to 500 thousand dollars + commission (from 15 to 60%). Most popular: Real Time Gaming, Playtechnet, Microgaming and Cryptologic. Game content. Various slots, games and lotteries that are launched at the request of the player.
Is online gambling legal in South Africa?
Yes. Online betting is legal with a licensed South African bookmaker.
Is online gambling profitable?
The typical gross profit margin for an online casino is about 60% as at 2020 according to csimarket.com, largely due to lower operating costs compared to brick and mortar ones.
Can you advertise gambling in South Africa?
Section 15 of the NGA prohibits the advertisement or promotion of any gambling activity: that is false or misleading; that is unlawful or misleading in terms of the NGA or any other provincial laws; or. that is intended to target or attract minors.
How Do I Start An Online Gambling Business In South Africa?
- Choose reliable software providers.
- Select gambling content.
- Get a gaming licence.
- Secure verified methods of payment.
- Create the online casino website.
- Concentrate on marketing and promotion activities.