The appellant, a Swaziland company, operated an internet casino licensed in Swaziland but not in South Africa. It advertised the casino on radio stations broadcasting in Gauteng. The Gauteng Gambling Board (the respondent) warned broadcasters to desist as the advertisements contravened Gauteng and national gambling legislation. The broadcasters withdrew the advertisements. In October 2004, the appellant applied to the High Court at Pretoria for a declaratory order that when Gauteng gamblers patronise the casino, their gambling occurs in Swaziland and neither such gambling nor advertising it contravenes the legislation. Both parties submitted expert affidavits regarding where internet gambling technically occurs. The matter was referred to trial, with the founding affidavit to stand as simple summons. The appellant's declaration alleged that gambling at its online casino does not take place in the Province and is not required to be licensed under the Provincial or National Acts, and therefore advertising is not prohibited. The Board excepted to the claim on the basis that the appellant failed to allege it held the necessary casino licence required under South African legislation.
The appeal was allowed. The order of the court below was set aside and substituted with: 'The exception is dismissed.' No costs order was made in either court as agreed by the parties.
An excipient raising an exception must accept the plaintiff's factual allegations as pleaded and cannot impermissibly advance contradictory facts of its own on which to base an averment that the claim lacks a crucial allegation. Where a plaintiff's case is that it requires no licence because its activities do not fall within regulated territory or activities, it is not a valid ground of exception that the plaintiff fails to allege it holds such a licence. Section 71(1) of the Gauteng Gambling Act 4 of 1995 prohibits advertising of gambling 'in the Province' that is unlicensed - the territorial qualifier applies to the gambling activity itself, not merely to where the advertisement occurs. Provincial gambling legislation aims to control gambling within the province and does not extend to prohibiting advertising of foreign gambling activities that occur wholly outside provincial territory.
The Court observed that there is a realistic prospect that evidence could establish that at least part of the online gambling process takes place in Gauteng, and that this factual question requires determination. The Court suggested that a trial may not be necessary, noting that the dispute appears to concern not the manner in which the gambling system functions (which experts may agree upon) but rather the legal question of whether players engaging in the activity can be said to be 'gambling' within the province - a matter of statutory construction for the court, not expert opinion. The Court recommended exploring the possibility of a joint expert report on the facts and, if agreed, compiling a stated case to properly inform legal argument. The Court also noted that the long-running dispute between the parties requires expeditious, practical and effective disposal, expressing regret that such outcome could not be achieved through the procedural route (exception) by which the matter came before it.
This case is significant for establishing principles regarding the proper approach to exceptions in civil procedure. It emphasizes that an excipient must accept the plaintiff's factual allegations and cannot base an exception on contradictory facts of its own making. The case also provides important guidance on the interpretation of gambling legislation, particularly regarding the territorial scope of provincial gambling laws and advertising restrictions. The judgment clarifies that section 71(1) of the Gauteng Gambling Act prohibits advertising of unlicensed gambling 'in the Province', not all advertising that occurs in the Province. This has implications for the regulation of offshore and online gambling activities. The case also demonstrates the court's willingness to suggest practical procedural solutions (such as joint expert reports and stated cases) to expedite resolution of disputes involving technical factual questions and legal interpretation.
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