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Is Playing the Lottery Legal in South Africa?

Lottery is becoming increasingly popular in South Africa. The question of legality of the SA lottery often stems up among players. Playing the lottery is completely legal in South Africa.

The South African gambling laws have remained the same since twenty decades. In this article, we’ll explain everything you need to know about the South Africa gambling laws.

Is Lottery Legal in South Africa?

To reiterate, playing the lottery is 100% legal according to South Africa gambling laws. The South Africa National Lottery is regulated by the National Lottery Commission.

Before we go further, let’s take a look at a brief history of the SA lottery.

Brief History of Lottery in South Africa

In 1996, the National Gambling Act approved land-based casinos, lotteries, sports betting and bingo. The Lotteries Act was passed in 1997. This act was created:

“to provide for the establishment of a National Lotteries Commission; to provide for the extension of the powers of the board; to provide for the licensing of an organ of state to conduction the National Lottery; to provide for a clear accountability process for the distributing agency; to eliminate overlapping of functions between the Minister and the board……….”

Lotteries Act in South Africa

Credit: National Lotteries Board

The National Lottery was launched on March 2, 2000 by President Thabo Mbeki. The 2004 National Gambling Act focused on online gambling in South Africa.

Dos and Don’ts of Playing Lottery in South Africa

  • Do not play if you’re less than 18 years old.
  • Register on the National Lottery website or selected banks in SA.
  • Purchase tickets only at approved retailers.
  • Only play at legal and licensed online lottery sites.

Legal Procedures for Claiming Lottery Winnings

Lotto prizes must be claimed within 365 days of the winning draw; otherwise, prizes will be forfeited and 50% goes to the National Lottery Distribution Trust Fund for a good cause. Claiming your prizes depends on how you played and how much you have won.

If You Played In-Store

It is advisable to sign on your paper ticket and keep it safe.

  • For prizes up to R2000, take your winning ticket to any retailer around you and claim your prizes.
  • For prizes between R2,001 and R49,999.99, you must fill out a claim form, submit a proof of identity and visit an authorized payment center.
  • For prizes up to R50,000 and more, you must visit one of the regional offices to fill out a claim form and submit proof of identity.

If You Played Online

It is much easier to claim online lottery prizes. Your winnings will be transferred into your National Lottery account.

  • For prizes up to R49,999.000 or less, your prize will be transferred to your online account.
  • For prizes of R50,000 or more, you will have to fill out a claim form and then head over to any of the National Lottery’s regional offices.

If You Played on an App

Claiming your prizes is quite easy if you played the lotto on an app, say a banking app such as Standard Bank.

  • For prizes up to R49,999, your prizes will be transferred directly into your bank Standard Bank account.
  • For prizes bigger than R50,0000, you must fill out an official claim form and head over to any of the National Lottery’s regional offices.

Legal Requirements for Lottery Agents

  • Lotto agents must first register with the National Lotteries Board and provide all necessary information for them to be approved. Lotto agents must not begin sales of tickets until they’re registered and approved.
  • Lotto agents must then obtain a license from the National Lottery Commission for them to operate.
  • Lotto agents must ensure that their site is safe with SSL encryption to ensure that user’s information is safe and secure.

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Conclusion

It is legal to play the lotto in South Africa and the good news is that lotto winnings are not subject to tax, so you get to enjoy every percent of your winnings. If you choose to play with a lotto agent, ensure that they’re duly registered and licensed.

FAQ

You must be 18 and above to play the lottery in South Africa.

Lottery sites are legal as long as they meet the legal requirements.

Foreigners are allowed to legally play the lotto in SA. Foreigner players must meet certain criteria to claim their prizes. A foreigner who resides in SA must provide their signed ticket with their full name, a valid passport, a legal SA permit, a bank account in SA and their bank statement to claim their prizes.

Lottery winnings are not taxed in SA because they are specially exempted from Income Tax. 

Foreign winnings are subject to tax in the country where they are played and not in South Africa. For example, if a South African plays the US lotto wins, they are taxed according to the US laws.

South Africans are allowed to play international lotteries such as Mega Millions, El Gordo and SuperEnalotto

If you partake in any illegal and unlicensed gambling in South Africa, your winnings will be seized by your bank and you could face criminal charges.
You can report illegal lottery activities to your Provincial Gambling Board or the National Gambling Board.
Lottery funds are distributed through the National Lottery Distribution Trust Fund (NLDTF). Every week, 27% of the National Lottery revenue is sent to the NLDTF.