The court found that LottoStar was in contravention of section 57 of the Lotteries Act, which states that any person who manages any scheme that directly or indirectly provides for betting on the outcome of any lottery is guilty of an offence.
The Mpumalanga high court has thus interdicted LottoStar from offering bets on the outcome of any lottery. The matter has been before the courts since 2015.
According to the judgment, LottoStar thus competes for Ithuba’s customer base, but — unlike the national lottery operator — the betting platform carries no legislative obligations to make contributions to the. LottoStar is only obliged to pay a tax of 1.5% of its ticket sales revenue. LottoStar argued that a judgment declaring its activities illegal would directly and substantially affect all bookmakers with a licence under the Provincial Gambling Act. The court, however, disagreed, finding that other parties in a similar position are not legally prejudiced by the order.
The court called this argument fallacious, because the constitution “does not give concurrent competency to a provincial legislature insofar as lotteries are concerned”.
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