A report by South Africa’s Gambling Board may spell an end to recent police raids against illegal gambling operators. According to the country’s Financial Mail, the Board has recommended the government legalize and regulate the online gambling industry with the decision now resting solely with Trade & Industry Minister Mandisi Mpahlwa.

The Gambling Board’s special investigative committee gathered research from many of the industry’s leading professionals, including eCOGRA chief executive Andrew Beveridge. The report concludes that the legalization of the online gambling industry would create many benefits for South African gamblers, law enforcement agencies and local entrepreneurs. New legislation would offer South African gamblers protection from “criminal influence and exploitation” and create valuable employment opportunities and growth in the country.

Thibedi Majake, CEO of the National Gambling Board, commented that online gambling in South Africa is growing in popularity and few adequate measures can be taken against illegal operators under current legislation. Majake believes the government has little choice but to legalize the industry, saying “It’s a phenomenon that is almost unstoppable.”

Majake also stated that if Minister Mpahlwa decided to follow the Board’s recommendations and legalize online gambling, the only immediate requirement would be the implementation of new regulations to govern the legislation.

News of possible legalization has been received favorably by internet gambling firms. Richard Rumbelow, the South African public affairs manager for UK-based Betfair, has strongly endorsed the Board’s report, calling it “very fair and reasonable.” Other overseas operators have also expressed interest in joining the South African market.

Potentially the current technological infrastructure in South Africa would go a long way to supporting the implementation of a legalized online gambling industry. Despite the fact that only one in ten households have access to the internet, call center infrastructure is expanding and has been suggested as a means of crucial back office support for internet gambling firms keen to set up shop in South Africa.

Paving the way for legalized online gambling could also bring numerous financial benefits to the country. According to Christiansen Capital Advisors, the industry’s value is estimated to reach $25 billion each year by 2010.

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