| 1) | Subject to the provisions of this Act, gambling in the Republic shall be regulated in accordance with the following principles: |
| a) | Gambling activities shall be effectively regulated, controlled, policed and licensed; |
| b) | members of the public who participate in any licensed gambling activity shall be protected; |
| c) | society and the economy shall be protected against the over-stimulation of the latent demand for gambling; |
| d) | standardisation and quality in respect of equipment used by any licence holder shall be promoted and maintained; |
| e) | the issuing of licences in respect of any gambling activity shall be transparent, fair and equitable; |
| f) | the State or any organ of the state or any organisation with which the State is concerned shall, apart from taxes or levies, not have any financial interest in any gambling activity-- |
| i) | in the case of the national sphere of government or any organisation which holds or administers any asset or right in respect of gambling activities for or on behalf of that sphere of government, from a date determined by the Minister by notice in the Gazette; |
| ii) | in the case of the North West Development Corporation (Pty) Limited, the Transkei Development Corporation Limited and Ciskei Peoples Development Bank Limited or any corporation into which any of those entities may have been converted or any organ of State or organisation with which the State is concerned to which those entities have transferred an interest in gambling activity, from a date determined by the Minister by notice in the Gazette; or |
| iii) | in any other case, from 10 May 1999; |
| i) | any financial interest in any gambling activity held by the State, an organ of State or any organisation with which the State is concerned, including any entity contemplated in paragraph (f)(ii); |
| ii) | any legal disability such as provincial judicial management, judicial management or any form of winding-up as provided for in the Companies Act, 1973 (Act No. 61 of 1973), or in any other law, of any entity contemplated in subparagraph (i), |
when considering an application for a licence contemplated in paragraph (j) before the date contemplated in paragraph (f)(i), (ii) or (iii), as the case may be;
| g) | licensing authorities with specific functions and powers relating to gambling shall be established by the provinces for the regulation and control of gambling activities; |
| i) | be a member of an authority referred to in paragraph (g); or |
| ii) | have a direct or indirect financial interest in any gambling activity; |
| i) | matters relating to gambling activities shall be performed in accordance with norms and standards determined by the Minister, with due regard to the findings and recommendations of the Board, by regulation made in terms of section 17(1)(b); |
| j) | a maximum of 40 casino licences may be granted in the Republic, and such casino licences shall be divided among the provinces as follows: |
Provided that where the number of licences in a province issued before 27 April 1994 exceeds the maximum number of licences allocated to a province in terms of this paragraph, such allocation shall be deemed to be applicable to that province from 10 May 1999;
| k) | the maximum number of gambling machines, other than gambling machines in casinos, which may be licensed in the Republic or in any particular province shall be prescribed by regulation made in terms of section 17; |
| l) | gambling machines referred to in paragraph (k) shall be linked to a central electronic monitoring system for the purposes of the monitoring and detection of significant events associated with each gambling machine; |
| m) | the South African Bureau of Standards mentioned in section 2(1) of the Standards Act, 1993 (Act No. 29 of 1993), shall be the sole agent for the Board in respect of the standardisation, testing, analysis, calibration and certification of gambling machines, any electronic monitoring system or any other devices or systems used for the purposes of a gambling game or any other gambling activity. |
| 2) | For purposes of subsection (1)(k) and (l)-- |
| a) | "gambling machine" means any electronic or electromechanical device, contrivance or machine which, upon insertion of a coin, token or similar object, or upon payment of any consideration, is available to be played or operated, and the playing or operation of which, whether by reason of the skill of the operator or as a result of chance, or both, may entitle the person playing or operating the machine, or any other person, to receive cash or anything of value; |
| b) | "electronic monitoring system" means any electronic or computer or communications system or device that is so designed that it may be used or adapted to send or receive data to or from gambling machines in relation to the security, accounting or operation of gambling machines. |
| 3) | In order to provide for the maintenance and promotion of competition in the gambling industry, and, in respect thereof, to prevent or control restrictive practices, acquisitions and monopoly situations, as envisaged in the Maintenance and Promotion of Competition Act, 1979 (Act No. 96 of 1979)-- |
| a) | no person shall, subject to paragraph (b), hold more than 16 casino licences in the Republic or more than two casino licences in any particular province: Provided that any person who prior to 27 April 1994 held more than two casino licences in a particular province may hold not more than three casino licences in that particular province; |
| b) | the provisions of paragraph (a) shall until 10 May 1999, subject to subsection (1)(j), not be applicable to a person to whom a licence has been granted in terms of any law in force immediately before 27 April 1994; |
| c) | a provincial legislature may in provincial legislation provide that a person may be deemed to be a body referred to in subsection (4)(c). |
| 4) | For purposes of subsection (3), "person" means-- |
| b) | any company, organisation, trust, partnership, association or any other corporate body; |
| c) | any natural person or body referred to in paragraph (b) who or which holds or controls a direct or indirect financial interest of more than 10 per cent in any casino licence; or |
| d) | any natural person or body referred to in paragraph (b) who or which manages or in any other way conducts, controls, administers or supervises a casino on behalf of another person or body who or which is the holder of a casino licence. |
