Date: Thu, 27 Nov 1997 00:59:32 +0200 Reply-To: wgalkin@lawcircle.com Sender: lawobserver Computer Law Observer <LAWOBSERVER@MAELSTROM.STJOHNS.EDU> From: "William S. Galkin" <wgalkin@lawcircle.com> Subject: Int'l Computer Law Observer #1 To: LAWOBSERVER@MAELSTROM.STJOHNS.EDU

**PREMIER ISSUE** ================== =============================== =========================================== INTERNATIONAL COMPUTER LAW OBSERVER December, 1997 -- No.1 =========================================== =============================== ==================

PLEASE FREELY REDISTRIBUTE THIS ISSUE!!!

Welcome to the Premier Issue of the International Computer Law Observer (ICLO). The ICLO is an e-mail report providing monthly coverage of significant legal developments from around the world relating to computers, technology and the Internet. Back issues and a listing of the Editorial Board can be found at http://www.lawcircle.com/observer . The Editor-in-Chief, William S. Galkin, Esq., is located in Ramat Gan, Israel, and can be reached for comments at wgalkin@lawcircle.com .

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--- SOUTH AFRICA ---

[BOTTOM LINE] COURT GIVES NO SANCTION FOR ONLINE GAMBLING

[WHAT HAPPENED] Johannesburg, Gauteng Province, South Africa - In South Africa's first Internet related judgment, the Witwatersrand division of the High Court of South Africa ruled in late October 1997 that it would not sanction online gambling in its jurisdiction [Ruben Olivier v The Minister of Safety and Security and the MEC for Safety and Security of the Province of Gauteng]

[WHY IT HAPPENED] The cyber cafe had brought an application to court for the return of certain computer equipment comprising of a number of networked personal computers, the network server and certain peripherals following on the search of the cafe's premises and the seizure of the computer equipment.

In refusing the application, the Court held that it was lawful for the South African Police to impound computer equipment owned by a cyber cafe, which was allegedly being used for online gambling.

In terms of existing legislation, Internet gambling is illegal and the owner of the site is in contravention of national and provincial Gambling Acts, where they exist.

[THE SIGNIFICANCE] Many experts have indicated that this case is indicative of the controversy and complexity surrounding the issue of regulating Internet related transactions. Local gambling experts argue that the proliferation of online gambling threatens to undermine the development of a legal casino industry in South Africa at a time when companies are vying with one another for casino licenses. Many such companies are investing billions of rands in setting up in infrastructure development, but are threatened with competition from Internet gambling site operators who can set up shop online with ease.

[INFORMATION SOURCES] Cape Times Newspaper, 27 October 1997 edition 2.) Michael Silber - Werksmans attorneys

[CONTRIBUTING EDITOR] Hofmeyr Herbstein Gihwala, Inc. - Contact: Lance Michalson - e-mail: lbm@hofmeyr.co.za