How gambling dens are creeping closer to schools and churches

It used to be that licensed gambling operators and bookmakers in the Northern Cape had to be located no closer than 500m from a school or church.

That distance shrunk to 100m in 2024, when provincial regulations were changed, provided the operator had the consent of the school or church – including agreement on the days and times during which gambling services could be offered.

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This has been the subject of numerous court cases over the years, usually launched by a competitor objecting to encroachment on its turf.

A recent case in the Northern Cape High Court provides an interesting window into the world of gambling in the province.

Deeps Betting Grounds, trading as Scorebet, objected to the issuing of a bookmaker’s licence to an operator called Vengies Gaming on the grounds that its premises in Kimberley were located within 500m of three churches and a school.

At the time the case was initiated, gambling establishments had to be situated at least 500m from any church or school.

While the case was underway, that restriction was reduced to 100m.

In 2021, Vengies withdrew its licence application, but the provincial gaming board failed to inform Scorebet of this fact. Meanwhile a second application by Vengies, largely similar to the first, was made in October 2021, allowing a period of a month for objections.

Scorebet only found out about this roughly a month later and consequently missed the deadline to lodge an objection. It then approached the court to have the licence set aside.

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In 2022, the high court interdicted the Northern Cape Gambling Board from implementing the temporary licence awarded to Vengies, pending a review of the application under the Promotion of Administrative Justice Act.

Vengies fired back with allegations that Scorebet had approached the court with unclean hands since it, too, operated gambling establishments within 500m of churches and schools.

In the process, Vengies conceded that its temporary licence had been issued in contravention of gaming regulations and had not been renewed by the gambling board within the required timeframe. This made the matter moot (that is, when a case loses its practical significance).

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Vengies initially denied its premises were within 500m of any schools and churches and argued that, even if they were, the board had the discretion to grant it a licence to operate.

It later conceded that its premises were within the 500m restricted zone and that its licence was therefore unlawful.

Why then did Vengies persist with its court case? It’s a question the court itself raised.

“The conduct of Vengies is, to say the least, lamentable,” wrote Judge Cecile Williams in a ruling last week.

“It is clear from the above that the review application would have succeeded on the merits had it not been for the eventual mootness of the matter. Vengies was well aware of this fact but persisted with its vexatious opposition on the merits for about 20 months before making the necessary concessions.”

The review was decided in favour of Scorebet last week, with the review application dismissed and costs awarded against the Northern Cape Gambling Board and Vengies.

The real problem is online gambling, but …

Online gambling is a far more serious problem to the country, but there is no escaping the creep of gambling establishments across the country – even in small town SA.

Provinces apply different regulations, and these are now likely to get some much needed scrutiny from the Department of Trade, Industry and Competition (dtic), which oversees the sector.

For example, should gambling establishments be prohibited from operating anywhere near South African Social Security Agency (Sassa) offices that dispense social grants to the poor? One study shows up to 50% of Sassa grants being blown on bets.

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The Western Cape has no prescribed minimum distance from schools and churches, preferring to address gambling licences on a case-by-case basis, although it takes into account socially sensitive sites – such as Sassa offices – when granting licences.

Gauteng also has no fixed distance restrictions when granting licences, but operates a similar regime to that of the Western Cape.

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