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

The Free State Gambling and Racing Board invited applications during 1998 for special licences to operate slot machines for a period of one year, before national regulations under the National Gambling Act 33 of 1996 had been promulgated and before a central electronic monitoring system was established. The National Gambling Board, a statutory body tasked with promoting uniform norms and standards in gambling regulation, supported an application by the Free State Board in the High Court seeking a declaration that such special licences could not lawfully be issued at that stage. The High Court dismissed the application, holding that special licences issued under s 38 of the Free State Gambling and Racing Act 6 of 1996 were independent of both the Free State Act’s other provisions and the National Gambling Act, and ordered the Free State Board to consider the pending applications. The National Gambling Board sought leave to appeal, which was refused on the basis that it lacked locus standi, prompting the matter to come before the Supreme Court of Appeal.

The application for leave to appeal was granted. The appeal was upheld. The High Court’s order was set aside and replaced with a declaration that the Free State Gambling and Racing Board was not entitled to consider or award the special slot machine licences applied for, and the counter-application compelling consideration of the licences was dismissed. Costs orders were made against certain respondents.

The case clarifies the relationship between national and provincial gambling legislation under the Constitution’s system of concurrent legislative competence. It affirms that provincial licensing powers must be exercised consistently with national norms and standards, and that special licences cannot be used to bypass national regulatory requirements. The judgment is also significant for its treatment of locus standi, confirming that a statutory body with regulatory oversight functions has standing to appeal where its statutory mandate is affected.