Case Law[2023] ZAGPJHC 625South Africa
Casino Association of South Africa v Portapa (Pty) Ltd t/a Supabets and Another (9547/2018 ; 38099/2018) [2023] ZAGPJHC 625 (5 June 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
5 June 2023
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: South Gauteng High Court, Johannesburg
South Africa: South Gauteng High Court, Johannesburg
You are here:
SAFLII
>>
Databases
>>
South Africa: South Gauteng High Court, Johannesburg
>>
2023
>>
[2023] ZAGPJHC 625
|
Noteup
|
LawCite
sino index
## Casino Association of South Africa v Portapa (Pty) Ltd t/a Supabets and Another (9547/2018 ; 38099/2018) [2023] ZAGPJHC 625 (5 June 2023)
Casino Association of South Africa v Portapa (Pty) Ltd t/a Supabets and Another (9547/2018 ; 38099/2018) [2023] ZAGPJHC 625 (5 June 2023)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAGPJHC/Data/2023_625.html
sino date 5 June 2023
IN THE HIGH COURT OF
SOUTH AFRICA,
GAUTENG LOCAL
DIVISION, JOHANNESBURG
CASE NO: 9547/2018
NOT REPORTABLE
NOT OF INTEREST TO
OTHER JUDGES
In
the matter between
THE
CASINO ASSOCIATION OF SOUTH AFRICA
Applicant
and
PORTAPA
(PTY) LTD t/a SUPABETS
First Respondent
THE
GAUTENG GAMBLING BOARD
Second
Respondent
CASE NO:
38099/2018
In
the matter between:
CASINO
ASSOCIATION OF SOUTH AFRICA
Applicant
and
THE
GAUTENG GAMBLING BOARD
First Respondent
CHAIRPERSON,
GAUTENG GLAMBLING BOARD
Second Respondent
PORTAPA
(PTY) LTD t/a SUPABETS
Third Respondent
SUPAWORLD
GAUTENG (PTY) LTD
Fourth Respondent
INTELLIGENT
GAMING (PTY) LTD
Fifth
Respondent
## JUDGMENT
JUDGMENT
Citation:
Casino Association of South Africa v Portapa (Pty) Ltd t/a
Supabets and another (Case no: 9547/2018) and Casino
Association of
South Africa v The Gauteng Gambling Board and Others (Case no:
38099/2018) [2023] ZAGP JHC 625 (5 June 2023).
CRUTCHFIELD
J:
[1]
These two review applications came before me as a special motion.
[2]
The applicant in both applications is the Casino Association of South
Africa (“CASA”), a voluntary association
having perpetual
succession and the power to sue and be sued in its own name. CASA’s
objectives include providing a forum
for the promotion of the casino
industry in South Africa and guarding the interests of CASA’s
members.
[3]
Save in respect of two casino licence holders in the Northern Cape
and one in the Eastern Cape, CASA’s members comprise
all of the
holding companies of the casino licence holders in South Africa. The
members of CASA are Tsogo Sun, Sun International,
Peermont Global and
Caesar’s Entertainment ENEA. CASA’s members and their
subsidiaries are the holders of all seven
casino licences issued in
Gauteng,
[4]
The first respondent is the Gauteng Gambling Board (“the
Board”), a juristic entity established in terms of
s3 of the
Gauteng Gambling Act, 4 of 1995 (“the Gauteng Act”).
[5]
The second respondent is the Chairperson of the Board, appointed in
terms of s5(3) of the Gauteng Act. The second respondent
is
responsible for convening the first respondent’s meetings in
terms of s11 of the Gauteng Act, at which meetings decisions
in
respect of overseeing and controlling gambling activities in Gauteng
may be taken.
[6]
The third respondent is Portapa (Pty) Ltd t/a Supabets (“Supabets”),
the holder of a bookmaker’s licence
in terms of chapter 9 of
the Gauteng Act, issued to Supabets by the Board under the Gauteng
Act.
[7]
The fourth respondent is Supaworld Gauteng (Pty) Ltd (“Supaworld”),
similarly holding a bookmaker’s
licence issued by the Board
under the Gauteng Act.
[8]
The fifth respondent is Intelligent Gaming (Pty) Ltd (“Intelligent
Gaming”), the distributor of a betting
software system,
Aardvark Betting Software Version 1.0 (“the Aardvark system”).
Intelligent Gaming is cited for such
interest as it might have in
these proceedings.
[9]
The referencing of the respondents as the first, second, third,
fourth and fifth respondents respectively herein refers
to the
respondents as they are cited in the second review application under
case number 38099/2018. The second respondent did not
oppose the
application. Insofar as I refer to “the respondents”
herein, I refer to the first and third to fifth respondents
jointly.
[10]
The respondents opposed both review applications (“the
reviews”) arguing
inter alia
that the review under case
number 9547/2018 was subsumed under case number 38099/2018. I heard
both reviews simultaneously.
[11]
CASA instituted proceedings under case number 9547/2018 on 9 March
2018. CASA claimed the following relief in its amended
notice of
motion:
11.1 Declaring it
unlawful in terms of the Gauteng Act for persons other than the
holder of a casino licence to offer fixed
odds bets on the outcome of
a casino game, including the game of roulette;
11.2 Declaring
that:
11.2.1 Supabets was not
authorised and/or licensed to offer fixed odds bets on the outcome of
roulette;
11.2.2 Supabets conduct
in offering fixed odds bets on the outcome of roulette was unlawful
and contravened s76(2) of the Gauteng
Act; and
11.2.3 Insofar as may be
necessary, reviewing and setting aside the Board’s decision
dated 2 March 2018, that Supabets
did not act contrary to the
provisions of s39 and s76 of the Gauteng Act.
11.3
Interdicting and restraining Supabets from offering roulette as a
contingency on which punters place fixed odds bets;
11.4
Costs against the first respondent, jointly and severally with the
second respondent in the event of the latter opposing
the
application, which the second respondent did not do.
[12]
CASA launched the second review on 15 October 2018, (“the
second review”), being the primary subject of the hearing
before me and of this judgment. CASA claimed relief:
12.1 Reviewing,
declaring invalid and setting aside the Board’s decisions:
12.1.1 approving Supabets
and Supaworld offering fixed odds bets on roulette games as a
contingency; and
12.1.2 approving
Supabets’ and Supaworld’s installation of the Aardvark
system at their various betting shops for fixed
odds betting as a
contingency;
12.2 Costs of the
application jointly and severally against such respondents that
opposed the application.
[13]
CASA brought the reviews in terms of PAJA alternatively the principle
of legality. The grounds of the reviews, in terms of
both PAJA and
the principle of legality, included the following:
13.1 The decisions
were premised on material errors of law, (which reflected the Board’s
failure to apply its mind in
reaching the decisions),
13.2 The empowering
provisions did not authorise the decisions thus rendering them
ultra
vires
;
13.3 The decisions
failed to take relevant considerations into account, (including the
oversaturation of the gambling industry
and the need for the fiscal
and regulatory net to ensure that dues were paid to the State,
contributing to local social and economic
development), thereby
undermining the reasonableness of the decisions; and
13.4 The decisions
did not comply with mandatory and material conditions enacted under
the legislative regime, thereby serving
to deprive CASA of its
entitlement to procedural fairness.
[14]
By agreement between the parties, I granted condonation in each
instance where it was sought by a party and I heard the arguments
of
senior counsel for the third to fifth respondents prior to those of
the first respondent.
[15]
Supabets, during 2018 or thereabouts, commenced accepting fixed odds
bets on a live roulette game streamed from a roulette
table in
Lithuania. CASA argued that roulette is legislatively defined as a
casino game and that fixed odds bets can only be offered
by the
holder of a casino licence issued by a South African gambling
authority. The Board’s subsequent decisions to approve
the
acceptance of fixed odds bets on a contingency, being the outcome of
the livestreamed roulette game from Lithuania, and approve
the
installation of the Aardvark System, are the crux of the reviews.
[16]
CASA and the respondents (“the parties”), agreed that
both reviews centred on two substantive questions of law,
the
relevant facts of which were largely common cause. The first and
critical issue was whether Supabets and Supaworld’s
offering of
fixed odds bets on the outcome of livestreamed roulette games from
Lithuania as a contingency was lawful, given that
Supabets and
Supaworld (“the Supabets’ entities”), both hold
bookmaker’s licences and not casino licences.
[17]
In the event that I find in favour of CASA on the first question,
then the second does not arise and both review applications
should be
decided in favour of CASA. A finding favourable to CASA on the first
issue will result in the Board’s decisions
approving Supabets
and Supaworld’s offering of fixed odds bets on the outcome of
livestreamed roulette games from Lithuania
as a contingency (‘the
decisions’), being unlawful given that those decisions are
inconsistent with the Gauteng Act.
[18]
If CASA fails on the first issue, then the second arises for
consideration. The latter is whether the Board properly applied
its
discretion when it decided to grant Supabets and Supaworld (“the
Supabets’ entities”), permission to act
in the impugned
manner, in that the roulette game livestreamed from Lithuania must be
a licensed roulette game. The Supabets’
entities accept that
the roulette game livestreamed from Lithuania, in order to be lawful,
has to be a licensed roulette game.
[19]
Accordingly, the respondents have to prove that the Board satisfied
itself prior to granting the approval, that the roulette
game was
licensed. Thus the question whether the Board did indeed properly
apply its mind and exercise its discretion in granting
the approval
arises as part of the second issue.
[20]
The respondents argued that the game offered by the Supabets’
entities comprises fixed odds bets on the contingency of
where a ball
would drop or a wheel would stop, in terms of the provision for
‘games’ in the National Gambling Act,
7 of 2004 (‘the
National Act’). The respondents accept that in order for their
offering to be lawful, the contingency
must fall within the
definition of sporting event in terms of the Gauteng Act.
[21]
The respondents contended that CASA’s approach that roulette
was defined as a casino game and available to be played
in casinos
only was restrictive, anti-competitive and in contrast to the
National Act, one of the purposes of which is to make
gambling more
accessible.
[22]
The respondents referred to the definition of “sporting event”
in the Gauteng Act read with s4(1)(b) of the National
Act. They
emphasised the reference to “competition or game” in the
Gauteng Act’s definition of “sporting
event”.
[23]
The respondents contended that the proper interpretation of the
definition of “sporting event” in the Gauteng Act
was not
the restrictive definition applied by CASA. The respondents argued
that the words “game and competition” read
together with
“any contingency” in s 4(1)(b) of the National Act,
evidenced the Board’s power to approve
the third to fifth
respondents’ applications to accept fixed odds bets on the
contingent outcome of live-streamed roulette
from Lithuania.
[24]
In effect, the respondents argued that the reference to a “game”
in the definition of “sporting event”
was not limited to
a game in which the participants exerted themselves profusely but
included a game other than a sports game.
This is notwithstanding
that the word “game” appears in terms of the definition
of “sporting event”.
[25]
The essence of the third to fifth respondents’ argument was
that betting on roulette games livestreamed from Lithuania
was not
exclusive to roulette as a casino game but was included in the
definition of ‘sporting event’ in the Gauteng
Act read
together with the National Act.
[26]
The Board largely agreed with the arguments of the third to fifth
respondents and asserted that the Supabets’ entities
did not
contravene the provisions of s39 and s76 of the Gauteng Act but
merely introduced a contingency type without prior approval
of the
Board.
[27]
The parties differed on the correct starting point in considering the
powers of bookmakers relative to those of casinos and
the extent of
the activities that both bookmakers and casinos are entitled to
undertake, being the core issue in this matter. The
respondents
relied on the National Act whilst CASA contended that it was the
Gauteng Act.
[28]
I turn to consider the issues raised in these reviews.
[29]
Gambling in Gauteng is regulated under both the National Act and the
Gauteng Act. This is because gambling is a functional
area referred
to in Part A of Schedule 4 of the Constitution together with casinos,
racing and wagering but excluding lotteries
and sports pools. The
heading to Schedule 4 is ‘Functional Areas of Concurrent
National and Provincial Legislative
Competence’. Accordingly,
functional areas falling under Part A of Schedule 4 are subject to
legislation passed by both parliament
and the relevant provincial
legislature. Each province is empowered to regulate these functional
areas differently and the Gauteng
Legislature has exercised that
power in terms of the Gauteng Act.
[30]
There being no
inconsistency between the national and the provincial acts relevant
hereto, the Supabets’ entities, in order
to conduct their
bookmaking businesses lawfully, are obliged to comply with the
provisions of both being the National Act and the
Gauteng Act insofar
as they relate to and regulate bookmaking
[1]
.
If Supabets and / or Supaworld breach one or the other or both of the
National Act and the Gauteng Act, then they act unlawfully.
In the
event that the Board permits them to act in contravention of either
or both Acts, then the Board conducts itself unlawfully.
[31]
Provisions of national
and provincial legislation are “inconsistent when they cannot
stand at the same time, or cannot stand
together, or cannot both be
obeyed at the same time. They are not inconsistent when it is
possible to obey each without disobeying
either. There is no
principal or practical reason why such provisions cannot operate
together harmoniously in the same field,’’
[2]
as is the case in this matter.
[32]
The preamble to the National Act
pertinently states that the National Act regulates the national
sphere of gambling, establishing
certain norms and standards that
operate throughout the country, ensuring that gambling activities
overall are effectively regulated,
licensed, controlled and policed,
protecting society and the economy and establishing certain national
institutions in order to
determine and administer gambling policy on
a national basis in a co-operative, coherent and efficient manner.
[33]
The Gauteng Act, however, legislates gambling in Gauteng
specifically. The Gauteng Act provides for restrictions, regulations
and controls appropriate and applicable to Gauteng.
[34]
The Board, the decisions of which are under review herein, is
constituted and empowered under the Gauteng Act. The Board’s
powers and functions, in terms of s4 of the Gauteng Act, include the
power to oversee and control gambling activities in Gauteng,
to
advise and make recommendations to the responsible member on matters
in connection with the licensing of persons to conduct
gambling in
Gauteng as well as its regulation and control, and to exercise such
powers and perform such functions and duties assigned
to the Board
under the Gauteng Act or such other applicable law.
[35]
Given that the provinces are entitled to pass legislation that deals
specifically with gambling in the respective provinces,
whilst the
National Act regulates the industry as a whole overall, together with
the fact that Supabets and Supaworld both operate
under bookmaker
licences issued by the Board under the Gauteng Act, it is the Gauteng
Act that is the starting point in considering
the nature and extent
of activities that bookmakers are authorised to undertake relative to
those of casinos, particularly whether
bookmaker licences permit
offering fixed odds bets on livestreamed roulette games from
Lithuania.
[36]
The Gauteng Act distinguishes between bookmakers and casinos. Section
1 of the Gauteng Act defines “casino” as
“premises
where casino games are played or are available to be played for money
or other valuable gambled on a possibility
of winning a prize.”
[37]
A “casino game” is defined as “any game,
irrespective of whether or not the result thereof is determined
by
chance or a measure of skill, played with playing cards, dice, a
gaming machine or any other device used to determine win or
loss in
the outcome of a wager for money or other valuable consideration, and
includes, without derogating from the generality
of the foregoing,
black jack, … and roulette, or any other game whose rules
closely resemble that of the foregoing.”
[38]
“
Casino” is
defined under the National Act as “premises where gambling
games are played, or are available to be played.”
[3]
“Gambling game” is defined under the National Act as “any
activity described as such in Section 5”.
[39]
“Conduct” is defined in the Gauteng Act as “to
carry on the business, to control, to direct, to keep, to
manage, to
oversee or to own and ‘maintain’ has a corresponding
meaning”. Accordingly, in order to conduct or
carry on the
business of a casino, it is necessary to hold a casino licence to
operate and conduct casino games including roulette.
[40]
“Gambling” is defined in s1 of the Gauteng Act as “the
wagering of a stake of money or anything of value,
on the unknown
result of a future event at the risk of losing all or a portion
thereof for the sake of a return, irrespective of
whether any measure
of skill is involved or not and encompasses all forms of gaming and
betting but excludes the operation of a
machine contemplated in
subsection (3) or (4): Provided that the responsible Member may, on
the recommendation of the board, declare
certain games of skill not
to be gambling.”
[41]
“
Licence” in
respect of a casino means “a casino licence contemplated in
Chapter 4 …”,
[4]
and in respect of a bookmaker, “a bookmaker’s
licence contemplated in chapter 9” of the Gauteng Act.
[5]
[42]
“Licensed premises” is defined as “the place or
premises specified in a licence on which the activities authorised
thereby may be conducted in terms of (the Gauteng) Act.”
[43]
Each definition covers its own specified ground. There is no overlap
between the definitions or the competencies under the
respective
licences.
[44]
Chapter 9 of the Gauteng Act regulates bookmaker licences. Section 55
of the Gauteng Act provides that a bookmaker’s
licence shall
authorise the accepting, on the licensed premises concerned, of fixed
odds bets on sporting events. Thus, accepting
fixed odds bets on
anything other than sporting events falls outside of the authority of
a bookmaker’s licence under the
Gauteng Act.
[45]
The National Act defines a “bookmaker” as “a person
who directly or indirectly lays fixed-odd open bets or
open bets with
members of the public or other bookmakers, or takes such bets with
other bookmakers”.
[46]
It is evident from the various definitions quoted above, that casinos
are defined under the Gauteng Act as places where “casino
games” are available to be played for money or other valuable
gambled on the possibility of a return. Casino games, in turn,
are
defined as including roulette. Accordingly, roulette is defined under
the Gauteng Act specifically as a “casino game”
available
to be played in casinos.
[47]
Given the definition of “conduct” in the Gauteng Act, it
is necessary under the Gauteng Act to hold a casino licence
in order
to conduct or carry on the business of a casino and to operate and
conduct casino games, including roulette.
[48]
Sports events being the
sole category of events on which a bookmaker is authorised to offer
fixed odds bets under the Gauteng Act,
[6]
the latter defines “sporting event” as “any
ball-game, race (including a race involving vehicles or animals)
or
other athletic or sporting contest, competition or game, including a
beauty contest, usually attended by the public.”
[49]
Thus, a bookmaker, under the authority of a bookmaker’s
licence, is entitled to offer fixed odds bets on ball games,
races
(including those involving vehicles or animals), or any other
athletic or sporting contest, competition or game, including
a beauty
contest, usually attended by the public. These are the only events in
respect of which a bookmaker may offer a fixed odds
bet.
[50]
The respondents contended that the applicant sought to “think
away” the comma after “sporting contest”
in the
definition of sporting event. The respondents argued that the comma
served to distinguish “sporting contest”
from “game”,
competition and the balance of the definition including beauty
contest. Accordingly, “sporting contest”
stood apart from
a game or competition, from a ball-game and a race.
[51]
The respondents referred to the inclusion of ‘’beauty
contest’’ in the definition of sporting event
as an
indication that a wide interpretation should be given to “sporting
event,” and that the latter should not be
limited to an event
requiring physical exertion of the participants. Furthermore, that if
the meaning to be attributed to “sporting
event” is
confined to an activity involving physical exertion by the
participants, then the words “competition or game”
after
“contest” are superfluous as a contest by definition
includes a competition or a game.
[52]
The interpretation of a
statute or other document involves the process of attributing meaning
to words. The text and the grammatical
meaning of the text read in
the context of the statute as a whole, remain the starting point of
the interpretive exercise.
[7]
A court must consider the
words as they stand in the text and may not reconstruct or rewrite
the text in order to give rise to a
predetermined outcome of the
interpretation.
[53]
The definition of a “sporting event,” as the term
implies, refers to a sporting or athletic event. The nature of
a
sporting event is determined by the nature of the specific activity
involved in the event. A ball-game or a race by their very
nature
refer to athletic or sporting activities, being those involving
physical exertion by the participants.
[54]
The use of the word
“including” in the phrase “race (including a race
involving…)” serves to broaden
[8]
the definition of “sporting event” by including other
types of races beyond those involving animals or cars. Thus,
motor-bike, cycling or go-kart races will be included as events that
meet the definition of “sporting event.” Similarly,
the
use of the word “other” in the phrase “other
athletic or sporting contest, …” extends the meaning
to
be attributed to the definition, to include sporting events or
sporting contests additional to or outside of ball-games and
races.
[55]
The natural meaning and the syntax of the words “athletic or
sporting contest, competition or game,” indicate that
“athletic
or sporting” serve to qualify the words thereafter, being
“contest, competition or game.” The
last mentioned,
“game,” is followed immediately by a comma, which
separates and isolates the phrase “athletic
or sporting
contest, competition or game” from the words that follow
thereafter.
[56]
The inclusion of “beauty contest” in the definition of
sporting event notwithstanding that a beauty contest does
not fit
into or accord with an athletic or sporting activity, does not negate
the interpretation that “athletic or sporting”
defines
and limits the words thereafter, being “contest, competition or
game.”
[57]
This is because “beauty contest” is included specifically
in the definition by way of the word “including.”
The
pair of commas located prior to “including” and after
“contest,” results in the separation or isolation
of
“including a beauty contest” from “athletic or
sporting contest, competition or game.” The use
of the
word “including” in the definition of sporting event,
extends the meaning of the definition to include beauty
contests,
which would not ordinarily be associated with a sporting or athletic
event.
[58]
In addition, a sporting event is defined as referring to such events
that attract public interest. The natural and ordinary
meaning of
“usually attended by the public” refers to attendance by
the fee paying public in the form of spectators
at the event. That is
manifest upon a simple reading of the definition.
[59]
The placement of the words “usually attended by the public”
at the end of the definition and after a comma, results
in that
phrase qualifying the entirety of the definition and the words prior
thereto including “beauty contest.”
[60]
Roulette cannot be considered to be a ball-game such as tennis or
soccer and roulette has no sporting or athletic characteristics
in
the sense of a true sporting or athletic event. Roulette does not
qualify as a race. Nor is it an athletic event.
[61]
Furthermore, roulette does not ordinarily attract the attendance of
public spectators in the sense that an athletic meeting
or a sporting
game, contest or competition, attracts the attendance of the public
as spectators.
[62]
I agree with the respondents’ contention that the variance
between the words “contest, competition or game”
is
minimal. That, however, does not change my view that “athletic
or sporting” define “contest, competition or
game.”
Whilst “game” in its ordinary grammatical meaning is not
limited to an event requiring physical
exertion by the participants,
the use of the word “game” in the context of the
definition is limited by the words “athletic
or sporting.”
[63]
In my view, the plain and clear language used in the definition of
“sporting event,” read in its entirety, particularly
the
words “any ball-game, race, … or other athletic or
sporting …” make it plain that the entire definition
other than a beauty contest, relates to sporting and athletic
activities.
[64]
Accordingly, the words “other athletic or sporting”
define and limit the words “contest, competition or game.”
[65]
In addition, the rule against redundancy militates against roulette
being both a casino game and simultaneously falling within
the
definition of sporting event. Roulette is defined specifically as a
casino game. In those circumstances and in the absence
of any
compelling consideration to the contrary, I must presume, that the
Gauteng Legislature intended that roulette, (given its
inclusion in
the definition of casino game), be conducted as a casino game only.
[66]
In the event that the
Gauteng Legislature intended roulette to be anything other than a
casino game available to be played in casinos,
it would not have
included roulette specifically in the definition of casino game.
Nothing stopped the Gauteng Legislature, if
it wished to do so, from
including roulette as a sporting event. However, the Gauteng
Legislature did not do so, choosing instead
to include roulette as a
casino game.
[9]
Roulette cannot
be both a casino game and a sporting event simultaneously.
[67]
I must be slow to
conclude that words in a single document, being the Gauteng Act, are
“tautologous and superfluous”.
[10]
Hence, in the light of the absence of any pressing consideration to
the contrary, I cannot find that notwithstanding the Gauteng
Legislature stipulating that roulette is a casino game to be played
in casinos, in the Gauteng Act, that the Gauteng Legislature
intended
something different, being that roulette is simultaneously a sporting
event, despite roulette not being referenced in
the definition of
sporting event.
[68]
In the circumstances, account being had of the words utilised in the
respective definitions of “sporting event”
and “casino
games,” the plain meaning of those words, their language,
punctuation and syntax, as well as their context
within the Gauteng
Act and the purpose of the relevant provisions, I am of the view that
the definition of roulette as a casino
game to be played in casinos,
reflects the intention of the Gauteng Legislature.
[69]
Accordingly, roulette, defined as it is as a casino game,
cannot be both a casino game and a sporting event simultaneously.
[70]
The respondents’ reference to the National Act as the starting
point in determining the activities under a bookmaker’s
licence, is problematic insofar as the respondents rely on the
generic law whilst excluding the specific provincial legislation
intended to deal with the issues relevant to this matter. The
respondents cannot use the provisions of the National Act to
interpret
or dilute the Gauteng Act.
[71]
It is apparent from the preamble to the National Act and the areas
and matters that are regulated under the National Act, that
the
latter bears no relevance to the issues that arise in this matter.
[72]
The nature of licences issued under the National Act are not relevant
to the issues in this matter. The National Act, effectively,
leaves
the licensing of casinos and bookmakers in the respective provinces
to the relevant provincial legislatures. In any event,
the national
legislature, Parliament, retains oversight in terms of the National
Act. The Supabets’ entities are obliged
to comply with both the
Gauteng Act and the National Act. It does not assist the respondents
to comply with the National Act only.
[73]
An emphasis on the National Act does not serve the respondents as
they are obliged to comply with both Acts. Nor can the respondents
rely on the National Act or utilise the National Act as a tool of
interpretation of the Gauteng Act, by using the general language
of
the National Act in order to interpret or dilute the relevant aspects
of the Gauteng Act. Similarly, the respondents cannot
utilise the
Operational Rules in order to interpret the Gauteng Act.
[74]
The respondents blur the statutory differentiation between bookmakers
and casinos by drawing a distinction between betting
on roulette and
betting on the outcome of roulette. The difficulty with the
respondents’ proposition is that when a player
bets on
roulette, wherever the player does so and whatever medium the player
utilises to do so, the player ultimately places a
bet or bets on the
outcome of roulette, being the contingency of where the ball will
land or the wheel will stop.
[75]
The respondents reference to the roulette table and the casino
experience are of no consequence. The location of the
roulette
table within a casino and the attributes of a casino prioritise form
over substance and thus are of no value. Equally,
the location of the
game or the medium used to participate in the game is not important.
It is the nature of the game that determines
the outcome.
[76]
The respondents referred to the Operational Rules for Bookmakers
(“Operational Rules”), made under the National
Act. The
respondents’ attempt to elevate the Operational Rules over the
Gauteng Act is untenable.
[77]
The Operational Rules apply to bookmakers’ operations. They do
not regulate what a bookmaker may do and do not assist
in determining
the activities that bookmakers may undertake under a bookmaker’s
licence.
[78]
The Operational Rules broaden the definition of “contingency”
found in the National Act by including provision
for “any
lawful event or contingency other than horseracing or a sporting
contest.”
[79]
Applying the definitions under the National Act and the definition of
“contingency” in the Operational Rules, the
respondents
conclude that it is lawful for a bookmaker to offer bets on a
“contingency” outside of a sporting event
or a
horseracing event.
[80]
The respondents argued that the National Act and the Gauteng Act
permit bookmakers to offer bets on sports events and other
lawful
contingencies, events or occurrences of which the outcome is unknown
to any person until it happens. According to the Board,
the Supabets’
entities do not offer bets on roulette but on the outcome of
roulette, being a bet on a lawful contingency.
Due to the bet being a
bet on a lawful contingency, the Supabets’ entities’
bookmaker licences permit bets on the outcome
of roulette games.
[81]
The flaw in the respondents’ reasoning is that the Supabets’
entities are obliged to comply with the Gauteng Act,
which provides
in terms that bookmakers may only accept bets on sporting events.
[82]
In so far as the respondents argued that CASA’s interpretation
of “sporting event” conflicts with the National
Act, the
National Act provides that a bet in respect of a bookmaker includes a
fixed-odds bet on any contingency.
[83]
Thus, the respondents, reading the two definitions together, argued
that a bookmaker is free to accept fixed-odds bets on any
contingency
such as the outcome a game not limited to a “ball-game,”
“race” and “athletic event”
or “sporting
contest.”
[84]
The error in the respondents’ reasoning is that a bet on a
roulette game or a bet on the outcome of a roulette game is
not a bet
on a sporting event as required under the Gauteng Act. A bookmaker
under the Gauteng Act may only accept a fixed odds
bet on the
contingent outcome of a sporting event, defined as set out above.
[85]
The content and the ambit of the Gauteng Act is wholly different to
that of the National Act. The two Acts have to be applied
in
accordance with their tenor, the National Act on an oversight basis
relating to general issues applicable to the industry as
a whole,
whilst the Gauteng Act focus is on the specifics of gambling within
the province.
[86]
Thus, I find that there is no difference between betting on roulette
and betting on the outcome of roulette. They both amount
to playing
roulette as a casino game as defined in the Gauteng Act.
[87]
The activities that bookmakers operating under the Gauteng Act may
offer are limited to sporting events as defined under the
Act.
[88]
Given my finding on the first legal issue referred to by CASA, there
is no necessity for me to deal with whether or not the
Board applied
its discretion appropriately in granting the Supabets’ entities
the relevant permissions, being the second
legal issue.
[89]
Accordingly, the second review must succeed and the decisions of the
Board to grant the respective permissions to the Supabets’
entities and Aardvark be declared unlawful and set aside. The
appropriate order will follow hereunder.
[90]
As regards case number 9547/2018, the issues therein were
included in case number 38099/2018. CASA ought to not to have
continued with the first review under case number 9547/2018 once it
issued the second review under case number 38099/2018. Accordingly,
CASA is entitled to the costs of the application under case number
9547/2018 but the respondents are entitled to the costs thereafter,
including their costs of opposing the first review and the hearing
thereof.
[91]
By reason of the aforementioned, I grant the following order:
1. Case number 9547/2018
is dismissed.
2. Portapa (Pty) Ltd t/a
Supabets and the Gauteng Gambling Board are ordered to pay the costs
of the notice of motion and founding
papers under case number
9547/2018 jointly and severally, the one paying the other to be
absolved.
3. The applicant is to
pay the costs of Portapa (Pty) Ltd t/a Supabets and the Gauteng
Gambling Board’s opposition to the
review and the hearing of
the review under case number 9547/2018.
4. The review case number
38099/2018 is upheld with costs.
4.1 The decisions
of The Gauteng Gambling Board:
i. approving the
third and fourth respondents offering fixed odds bets on roulette
games as a contingency; and
ii.
approving the third and fourth respondents’ installation of the
Aardvark system at their various betting shops for
fixed odds betting
as a contingency;
are reviewed, declared
invalid and set aside.
4.2 The first,
third, fourth and fifth respondents are ordered to pay the costs of
the review jointly and severally the one
paying the others to be
absolved.
CRUTCHFIELD J
JUDGE OF THE HIGH
COURT OF SOUTH AFRICA
GAUTENG LOCAL DIVISION
JOHANNESBURG
Delivered:
This judgment was prepared and authored by the Judge whose name is
reflected and is handed down electronically by circulation
to the
Parties / their legal representatives by email and by uploading it to
the electronic file of this matter on CaseLines. The
date of the
judgment is deemed to be 5 June 2023.
COUNSEL
FOR THE APPLICANT:
Ms
S Budlender SC
and
Mr J Mitchell.
INSTRUCTED
BY:
ENS
AFRICA.
COUNSEL
FOR THE FIRST RESPONDENT:
Mr
G Rautenbach.
INSTRUCTED
BY:
Motlatsi
Seleke Attorneys.
COUNSEL
FOR THE THIRD, FOURTH & FIFTH RESPONDENTS:
Mr
B Roux SC.
INSTRUCTED
BY:
Michael
Werner & Associates Inc.
DATE
OF THE HEARING: 4 May 2022.
DATE
OF JUDGMENT: 5 June 2023.
[1]
Ex
parte Speaker KwaZulu-Natal Provincial Legislature in re
Certification of
the
Constitution of the Province of KwaZulu-Natal
1996
(4) SA 1098
(CC) para 24 (footnotes omitted).
[2]
Id.
[3]
This definition is subject to certain exceptions that are not
relevant hereto.
[4]
Gauteng Act, Section 1.
[5]
Gauteng Act, Section 1.
[6]
Gauteng Act, Section 1.
[7]
Capitec
Bank Holdings Ltd and another v Coral Lagoon Investments 194 (Pty)
Ltd and Others
[2021]
ZASCA 99
(09 July 2021) (‘
Capitec’)
at
para 51.
[8]
De
Reuk v Director of Public Prosecutions (Witwatersrand Local
Division)
[2003] ZACC 19
;
2004
(1) SA 406
(CC)
(‘De
Reuk’).
[9]
De
Reuk
id.
[10]
African
Products (Pty) Ltd v AIG South Africa Limited
2009
(3) SA 473
(SCA) para 13.
sino noindex
make_database footer start
Similar Cases
Casablanca Body Corporate v Astrodon (Pty) Ltd and Others (2022/041580) [2025] ZAGPJHC 160 (24 February 2025)
[2025] ZAGPJHC 160High Court of South Africa (Gauteng Division, Johannesburg)98% similar
C.A.S. v K.V.S. (2024/143234) [2025] ZAGPJHC 718 (28 February 2025)
[2025] ZAGPJHC 718High Court of South Africa (Gauteng Division, Johannesburg)98% similar
Casilli v Facebook South Africa (Pty) Ltd and Others (253/20) [2023] ZAGPJHC 297 (3 April 2023)
[2023] ZAGPJHC 297High Court of South Africa (Gauteng Division, Johannesburg)98% similar
Gamede v Sani Fleet Management (Pty) Ltd (2021/4135) [2025] ZAGPJHC 240 (27 June 2025)
[2025] ZAGPJHC 240High Court of South Africa (Gauteng Division, Johannesburg)98% similar
Gamede v Wesbank, A division of FirstRand Bank Limited (24707/2020) [2023] ZAGPJHC 804 (20 July 2023)
[2023] ZAGPJHC 804High Court of South Africa (Gauteng Division, Johannesburg)98% similar