Generally speaking, governments tend to work very slowly. This is mostly because they are very inefficient machines that have more impediments toward getting things done than stuff put in place to help getting things done. Bureaucratic red tape clogs the works and keeps things moving at a snail’s pace. For just two examples in the United States, look at the Unlawful Internet Gambling Enforcement Act (UIGEA), which was passed in 2006 yet won’t take effect until June of this year at the earliest, and Obama’s healthcare reform act, which is now passed yet the supposed “benefits” won’t kick in until at least 2014.

It’s not just the U.S. government that represents the model of inefficiency, though. Pretty much every government is like that. Right now that inefficiency and inability to get things done in a timely manner is really hurting the government of South Africa.

In 2008, the country legalized online gambling and passed legislation that would regulate and tax the industry. The new law allows for up to ten online casino operators to set up in South Africa and begin serving their citizens. Those casinos must be approved for a license by the Minister of Trade and Industry, Rob Davies. So far, for reasons unknown to me, he has yet to give the okay to a single online casino.

As a result of the political foot-dragging, ineptitude, or whatever is going on, black market online casinos have sprung up and become major players in the industry. The people of South Africa are now getting their online gambling, but the government isn’t getting the tax money. Not only that, but there is no government agency assuring the fairness of those casinos.

Last week, government officials met for the national Gambling Review Commission (no, we’re not a sponsor; they just used our name). In that meeting, advisors, some of whom pushed for the Interactive Gambling Act in 2008, described the illegal gambling activity going on in the country and its affect on the nation.

This is yet another example showing that the government can’t ever effectively deprive the people of something they want. If they want to gamble, they will find a way to do so. That is why the South African government passed the Interactive Gambling Act two years ago. However, because they have yet to license any online casinos, the black market has jumped in and supplied the goods demanded by the people. Now the government has two problems, because they still need to get around to approving and adequately taxing and regulating the online gambling in the country, but now they also have competition from illegal sites.