The National Gambling Board v The Free State Gambling Board and Others

The Free State Gambling and Racing Board invited applications in 1998 for special licences to operate slot machines for a period of one year under section 38 of the Free State Gambling and Racing Act 6 of 1996. This occurred before national regulations prescribing maximum numbers of gambling machines were promulgated and before a central electronic monitoring system was established as required by the National Gambling Act 33 of 1996. The National Gambling Board, established under the National Act to promote uniform norms and standards, supported an application by the Free State Board for a declaratory order that such special licences could not lawfully be issued at that stage. The High Court dismissed the application, holding that special licences under section 38 operated independently of both the Free State Act’s other licensing provisions and the National Act, and granted a counter-application compelling the Free State Board to consider the pending applications. The National Gambling Board sought leave to appeal.

Leave to appeal was granted. The appeal was upheld. The High Court’s order dismissing the Free State Board’s application and granting the counter-application was set aside and replaced with an order declaring that the Free State Gambling Board was not entitled to consider or award the special slot machine licences applied for, and dismissing the counter-application. Costs orders were made against certain respondents.

The case clarifies the relationship between national and provincial gambling regulation under concurrent legislative competence, confirming that provincial licensing powers must be exercised consistently with national norms and standards. It establishes that special gambling licences are not exempt from overarching statutory controls and underscores the importance of contextual statutory interpretation to avoid regulatory circumvention. The judgment also affirms a broad, functional approach to locus standi for statutory bodies charged with regulatory oversight.