Casino Enterprises (Pty) Ltd (Swaziland) v The Gauteng Gambling Board

The appellant, a Swaziland-registered company, operated an internet casino licensed in Swaziland but not in South Africa. To attract customers in Gauteng, it advertised on radio stations broadcasting in that province. The Gauteng Gambling Board warned broadcasters that the advertisements were unlawful because they promoted an unlicensed casino, allegedly contravening the Gauteng Gambling Act 4 of 1995 and the National Gambling Act 7 of 2004. The broadcasters ceased the advertisements. The appellant then approached the Pretoria High Court for a declaratory order that gambling by Gauteng residents on its online casino occurred in Swaziland and therefore did not contravene Gauteng or national legislation, nor render the advertising unlawful. After conflicting expert evidence on how internet gambling operates, the matter was referred to trial and a declaration was filed. The Board raised an exception to the declaration, contending that the appellant failed to allege that it held the necessary South African gambling licence.

The appeal was upheld. The order of the Pretoria High Court was set aside and replaced with an order dismissing the exception. No costs order was made.

The case clarifies the proper approach to exceptions in South African civil procedure, reaffirming that an excipient must accept the pleaded facts and may not rely on contradictory factual assertions. It also provides important guidance on the territorial reach of provincial gambling legislation, particularly in relation to internet gambling and advertising of foreign-licensed gambling activities.