Should online gambling be legalised in South Africa?

Written by John Morrison

AT present, online gambling is illegal in South Africa. This is since the North Gauteng High Court ruled last year that the act of gambling occurs at a user's computer and not at the online casino website. The Supreme Court of Appeal upheld this law in October, effectively putting an end to online gambling in South Africa.

The legal hurdles that South Africans face with online gambling are similar to those in the United States. However, there is still a chance that online poker might be legal by 2012. While the act of online gambling is not blatantly illegal in most states in the US, it is illegal for US banks to process online gambling transactions. This combined with the government's recent crackdown on gambling has effectively brought the industry to a standstill.

These laws regarding online gambling has had an impact on the South African media. When the ban first went into effect, AllAfrica.com reported that the media sector would lose around R76 million in earnings - the amount of money that the company made from airing ads for online companies. Assuming the media sector made similar revenues the following year, the media sector has arguably lost R150m due to the ban.

IoLscitech reported in 2009 that South Africa netted around R1.9bn in tax revenue from legalised gambling. This was of around R18.1bn in revenues. If similar tax levels were applied to online gambling in 2009, an additional R32m in taxes could have been generated from an income of R320m were online gambling legal.

Consider the fact that this estimate was based on companies that operated at the time. That did not include many of the major online gambling sites. GamblingSA reported earlier this year that companies such as BetFair were in attendance at the 5th Biennial Gambling Conference at the Emperors Palace in Johannesburg.

What this boils down to is that the online gambling industry has a much broader impact than those operating roulette games or online poker sites. Revenue and taxes generated in connection with the online gambling industry can be used to bolster the South African economy in a time where additional revenue streams are desperately needed worldwide.

If properly monitor and regulated, the online gambling industry could become an asset to South Africa.

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OGAMES: Big Brother gets more interactive

DSTV Online has launched Africa’s biggest gaming portal, Ogames.com. Offering users over 600 games for PC and over 300 mobile games, Ogames.com has focused on social media integration and dynamic multiplayer offerings for its online community of gamers.

Key to the Ogames.com offering is multiplatform interaction, giving users the opportunity to play games with strong links to the DStv Channel offering. Ogames.com’s new Big Brother games – developed for the current season of M-Net’s Big Brother Amplified – allow users to play for points which translate into rewards for the housemates on the live TV show.

By playing Big Brother Bubble Popper, Big Brother Wordsearch or taking the Big Brother Quiz, Ogames.com users have the chance to influence aspects of the television show. They can use the points they score by playing to supply the housemates with extra snacks, drinks and surprise gifts & goodies at their Saturday night parties. Users also stand the chance to win rewards of their own. By scoring more than 500 points, they are entered into a grand prize draw for Samsung prizes at the Big Brother Amplified finale on 31 July.

Brendan McNulty, GM: Games, says that this level of gaming / television interactivity is a first for the continent and puts Ogames.com at the forefront of interactive gaming worldwide.

“Viewers and gamers in Africa have never had the chance to influence the content of a television broadcast on this level before – outside of voting for contestants. The Big Brother games allow users to compete and show off their skills and have the result broadcast across the continent for all to see on Africa’s biggest reality show,” says McNulty. “This development on Ogames.com is just the first in a series of steps which will take interactivity in the broadcast space to new heights in our market.”

Darkness Falls – The Jozi Outbreak is another new addition to Ogames. The MXit-based Massively Multiplayer Online Role-Playing Game (MMORPG) sees users entering a shadowy world to participate in a battle that's been raging for generations in Johannesburg. Thousands of players have chosen their side, created their own characters and are honing their skills as they battle through the dark underworld of Darkness Falls.

“MMO’s like Darkness Falls are generating huge traffic volumes as thousands of players log in to challenge each other. This kind of game has changed the way users engage with multiplayer offerings and Ogames.com is excited to be leading the charge,” says McNulty.

Ogames.com is the biggest gaming portal in Africa, built specifically for the African market. The portal delivers quality, fun and challenging mobile and PC games to users. With a strong multiplayer offering, Ogames.com offers users the chance to compete against each other for high scores and collect badges to showcase their achievements. Ogames.com launches tailor-made Kenyan and Nigerian sites in July.

- Issued on behalf of Ogames.com

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NEWS FLASH: MWEB to host an additional 53 gaming titles locally!

MWEB is continuing to expand its online gaming offering through its existing partnership with Gameservers.com. Riding on the back of the successful launch of Call of Duty: Black Ops, MWEB is looking to expand its platform further to ensure that local Internet users have a superior gaming experience.

To support this, the Interent Service Provider will be hosting a further 53 Gameservers.com titles on its network, including the likes of the popular Counter Strike, Battlefield and Medal of Honour.

“Online gaming is a key focus for us in 2011 and we are excited by the growth that we’re seeing in this space. Our goal is to position MWEB at the forefront of online gaming in South Africa,” says Derek Hershaw, CEO of MWEB ISP.

To further support these additional titles and to ensure a flawless end-user experience, the ISP has deployed its own Steam server allowing South African gamers to get automatic updates on their favourite games. Steam has servers all over the world, which host several major gaming titles.

“The decision to deploy a Steam Server is another value added service to our customers and means that they won’t need to worry about hunting for patches and spending hours downloading updates on unsolicited websites,” explains Hershaw.

The new gaming titles and the Steam servers will be hosted in MWEB’s Cape Town and Johannesburg data centres to ensure that customers have a superior gaming experience.

Both MWEB and non-MWEB customers will see benefits from the local hosting of the games and Steam servers as they will no longer have to connect to international servers.

- Issued on belhalf of MWEB and Greater Than

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NEWS: Facebook and Twitter now available on Xbox LIVE in South Africa

Xbox LIVE logoJUST months after the launch of Xbox LIVE in South Africa, we’re pleased to inform you that Facebook and Twitter will be available on Xbox LIVE from the 26th of January. At the same time, a ‘My Community’ channel will also be added to the LIVE Dash and will launch on both the Standard and Family Dashboards. This is part of our ongoing commitment
to providing quality gaming and entertainment in the living room.

The launch of Facebook and Twitter adds to the depth of experience the Xbox LIVE service has to offer. Xbox LIVE launched less than three months ago in six new EMEA countries, making a total of 35 LIVE enabled countries globally. In this short time, members from the newly added countries have spent over 3.5 million hours using the LIVE service, which is an unprecedented pick up.

  • Over 630 000 hours of multiplayer gameplay have been accumulated across all six launch countries in that time.
  • Xbox LIVE now has over 30 million members across the world, each spending on average 40 hours a month, meaning that in total members are logging over 1 billion hours a month worldwide.

We’ve listed some of the exciting new Facebook and Twitter features below. The Xbox LIVE community is expected to grow over the coming months, so look out for more news as we continue to add to the Xbox LIVE experience.

Facebook on Xbox LIVE

Facebook and Xbox LIVE join forces to connect you with your friends as you interact with the largest entertainment and gaming network on TV. Share real-time status updates and photos with your friends, check out photo galleries on the big screen or share your favourite gaming moments on Facebook right from your television. Take bragging rights to a completely new level by sharing updates on your achievements and success in upcoming games available on Xbox 360.

Facebook on Xbox LIVE features:

  • Connect with friends using Facebook.
  • Explore news feeds from friends and family.
  • Update your status with achievements in-game.
  • Post, read, and respond to comments on status updates and photos.
  • View photos using the Xbox 360 built-in scaler for great-looking pictures.
  • With Friend Linker, find friends on Facebook that also have Gamertags and invite them to your Xbox LIVE Friends List.

Twitter

Twitter comes to Xbox 360 and Xbox LIVE. Thanks to the app, you can now stay in touch with your friends and family by reading and posting Tweets via your Xbox 360 and Xbox LIVE. If you want to let your friends know that you’re firing up a multiplayer match, you can quickly and easily read, reply, and post updates online right from your console.

Twitter features:

  • Link your Gamertag to your Twitter username.
  • Automatically sign into Twitter when you sign into Xbox LIVE.
  • Read Tweets from people you follow, post new messages and reply to others.
  • Connect with Xbox LIVE friends who you follow on Twitter, view user lists and favourite Tweets.

NOTE: Facebook, Twitter, video chat features and Xbox LIVE Party require an Xbox LIVE Gold membership.

Follow South Africa’s local Xbox 360 Twitter page @Xbox360ZA or join their Facebook page Xbox 360 South Africa.

- Published on behalf of Xbox 360 South Africa

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MIND SPORT: Should competitive gaming be considered as an internationally recognised mind sport in South Africa?

THERE was a lot of talk and debate towards the end of last year about 2011 being “the year of eSports”. The central debate in a South African context was whether or not competitive gaming should be recognised and treated as an international mind sport in our country.

Electronic sport, or mind sport, falls into the category of non-physical competition. Competitive gaming is the fastest growing mind sport, and there currently exist several leagues and tournaments word-wide whereby gamers compete at amateur, semi-professional and professional levels.

With a steady increase in the number of competitive gamers across genders and cultures, the mind sport debate revolves around the idea of classifying network gaming as an official national sport and treating and covering it in the same manner as existing sports such as rugby and cricket.

It’s a misnomer that ‘real’ sport is physical and sweaty and demands an impressive display of physical prowess. With most sports being based on warlike principles, it’s often forgotten that quick wit and strategy play an integral part in most of the sports we love. And let’s face it – not everyone is cut out for the gym or has the impressive build of Os du Randt.

Consider chess, poker, pub quizzes, crossword contests and poetry slam as competitive mind sports. These all require quick wit, intellectual talent and creativity without the need to physically tackle opponents to the floor. And if you think that gaming is mindless finger-clicking, competitive gaming demands huge amounts of quick thinking, strategy, and above all, teamwork.

The World Cyber Games

World Cyber Games

The World Cyber Games, which began in 2000, initially consisted of 174 competitors from 17 different countries with a total cash prize of $20 000. In 2006, 700 competitors from 70 different countries fought for the cash prize of $462 000 (Wikipedia. Image: erodov.com).

The good news is that African countries are gradually getting on board and gearing up to compete internationally. Mind Sports South Africa (MSSA) is currently driving inter-school gaming leagues and organised the first official gaming test match between South Africa and Namibia last month.

According to an interview with the president of MSSA, Colin Webster, published on ITWeb, “One of the key highlights this year is the fact that MSSA is in talks with local government to organise a national e-sports LAN event that will have the same stature as a national sporting event. Gamers from all over the world will be able to test their skills against South African gamers.”

Unfortunately, for South African gamers to compete on a global scale and participate in the major leagues held in Europe, Korea and the United States, politics need to come into play. In order to compete internationally, gaming (as well as any sport) need to meet a certain set of criteria. There are good reasons for these, but when we consider that hi-tech sports such as gaming are ever-evolving with technology, perhaps we need to consider having such criteria updated as well.

The central issue is that for any sport to qualify and be able to compete at an international level, it needs to be accessible to everyone. Every government school has a sports closet full of soccer balls and cricket bats and there are real efforts to offer the same to rural schools around the country.

However, now that we are undoubtedly living in the digital age, it is also becoming compulsory for all schools to have computers and internet access. That’s all it takes to set the stage for competitive gaming tournaments. Learners could even opt to participate in network gaming during their lunch breaks. I’d guarantee that you wouldn’t have to twist any arms to get learners interested.

Mind Sport Growth and Revenue

There is also the opportunity to make a decent living from competitive gaming. The World Cyber Games held in South Korea every year sees a huge flow of revenue from sponsorship and advertising – not to mention the marketing value that top, individual gamers gain by proving their skills. As existing tournaments have shown, large technology and PC corporations are more than willing to play their part and offer sponsorship and support.

To put the growth and interest of competitive gaming into perspective, the World Cyber Games, which began in 2000, initially consisted of 174 competitors from 17 different countries with a total cash prize of $20 000. In 2006, 700 competitors from 70 different countries fought for the cash prize of $462 000 (Wikipedia).

I sincerely hope that competitive gaming gets the attention and coverage it deserves within the realm of mind sport. As an ardent gamer, I believe that having games pushed and played to their limits by professionals will improve the quality of existing and future games as well as associated technologies.

Furthermore, it’s a chance for people to engage with the latest technology, a chance to bring together people with similar interests, to team-build, to profit off all the advertising possibilities, and to show the rest of the world that South Africa has what it takes to compete globally in the realm of quick wit and real time strategy.

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Mind sport links:
2011: The Year of eSports
Africa gears up for e-sports

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