Tuesday, 7 February 2012: Betfair's quest for worldwide markets has suffered a setback following the company's decision to pull out of South Africa.
From midnight next Monday, the betting exchange will no longer accept business from residents of South Africa following a ruling by the country's senior judiciary.
Betfair has neither advertised in South Africa, or accepted the Rand, although its site has been available to South African punters for several years while the legality surrounding online gambling remained unclear.
However that uncertainly was finally resolved after Swaziland-based Casino Enterprises lost its bid to operate in South Africa in September when the Supreme Court of Appeal upheld an earlier decision by North Gautend High Court that declared online, or interactive, gambling illegal.
Betfair said it has taken a while to suspend operations in South Africa as it had to review the legal position following the case, and then go through necessary internal process.
It refuses to specify how many South African account holders, who must withdraw their funds by February 14, will be affected, but suggests the number is not substantial in terms of the overall customer base.
A Betfair spokesman said on Monday: "The recent Casino Enterprises ruling in the South African Supreme Court of Appeal has clarified the scope of South African law relating to online gambling.
"Following this clarification and in-line with Betfair's prudent and cooperative approach to regulatory compliance, we have taken the decision to suspend all South African registered accounts and block our website to anyone located in South Africa.
"Betfair is in the process of applying for a betting licence in the state of Western Cape, and is also fully engaged in the government's current consultation into future online gambling regulation in South Africa."
