KwaZulu-Natal Bookmakers’ Society v Phumelela Gaming and Leisure Ltd

The KwaZulu-Natal Bookmakers’ Society and the Gauteng Off-Course Bookmakers’ Association, representing licensed bookmakers, challenged the legality of totalisator operators offering betting on sports other than horse racing. They contended that totalisator betting on sports constitutes a ‘sports pool’ under the Lotteries Act 57 of 1997 and is therefore prohibited unless licensed under that Act. The respondents (Phumelela Gaming and Leisure Ltd, Kenilworth Racing (Pty) Ltd and Gold Circle (Pty) Ltd) operated totalisators under licences issued by provincial gambling boards in terms of provincial legislation and the National Gambling Act 7 of 2004. The bookmakers sought declaratory and interdictory relief in the Gauteng Division of the High Court, which dismissed the application. The bookmakers then appealed to the Supreme Court of Appeal.

The appeal was dismissed with costs, including the costs of two counsel where employed.

This judgment authoritatively clarifies the distinction in South African law between ‘sports pools’ under the Lotteries Act and totalisator betting under gambling legislation. It confirms provincial competence to regulate and license totalisator betting on sports other than horse racing and preserves the constitutional division of powers between national and provincial authorities in the gambling sector.