Okay, this much we know about online gambling in South Africa. The North Gauteng High Court says that online casinos are illegal. The Gauteng Gambling Board agrees and plans to have any violators arrested. Many online casinos, such as Piggs Peak, disagree and are appealing the decision. The GGB says that the country’s laws about online gambling are crystal clear while Piggs Peak says that they will resume online gambling operations in the country once the confusion is resolved. So obviously somebody is wrong.

Here’s another interesting variable, though. Online betting is perfectly legal there. As if to confuse things further, today Powerbet Gaming spoke up and reminded the world that their enterprises are completely legal and sanctioned by the government.

Powerbet Gaming released a statement that said that “there is considerable confusion among members of the public, banking institutions and the media regarding the legal position of online gambling and betting in South Africa.” Okay, I definitely agree so far. They then went on to say that the online gambling that is banned is online casino games. However, sports betting and online bookmaking “has been offered legally in South Africa for several years, within a well-established legal framework, and administered by provincial and national boards.”

The reason Powerbet wants to make it clear that online betting is legal in South Africa is that they are the parent company of Voltbet.com, an online betting site that is based in South Africa and licensed by the Western Cape Gambling and Racing Board. According to Powerbet Gaming, there is no legal ban on placing a bet with Voltbet or similar companies.

If you’re confused then that would put you in the majority. To me, the only thing that seems clear is that nothing is really clear. Isn’t government regulation and bureaucracy great?

As a result of a legal decision, online casinos are now closing their doors to South African customers. Yesterday, Silver Sands Online Casino announced that they will not allow South African citizens to gamble on their website. In their statement, the online casino, which is based in South Africa, said that they have “made the decision to exclude South African players from participating in our games until there is more clarity regarding the legality of gaming in cyberspace for South African citizens.”

Silver Sands is the second South African online casino to make that move. After initially standing in defiance against the legal decision banning online gambling, Piggs Peak online casino, also based in South Africa, announced that they would temporarily stop online gambling in South Africa until their appeal is heard and a decision made.

Though South African customers can no longer play any games on Silver Sands Online Casino, management stresses that the players accounts “will remain accessible” and the players “may request a withdrawal” at any time. A similar statement was released by Piggs Peak, who is still legally operating their brick and mortar casino in the nation.

All of this stems from an August 20 ruling by the North Gauteng High Court that it is illegal to gamble online in the country, a decision that has been praised by the Gauteng Gambling Board but is being appealed by Piggs Peak.

By sheer coincidence, outlawing online gambling in South Africa would eliminate the only competition for the GGB, who runs all gambling operations in the nation. I’m sure that had nothing to do with the ruling, though.

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.