South African Online Casino to Close
It is expected that around 70 employees of Pigg’s Peak Online Casino will today receive exit packages. Muzi Dlamini, the Mbabane Branch Manager, confirmed this earlier this week.
However, employees at Pigg’s Peak believe the packages to be highly unfair and have written to Khabo Dlamini the Acting Labour Commissioner. They are claiming that the exit packages were offered on very short notice and they were delivered without any kind of consultation with the employees. Employees were informed of the decision to close the company by email a few months ago. Howard Berchowitz, the Managing Director, is refuting the employees claims saying that he has offered them double what they are owed.
Pigg’s Peak is closing as a result of the South African National Gambling Board winning in a court battle against the casino. The courts ruled that the casino has no licence to run a gambling business in South Africa despite the fact that it is operated from Swaziland where it does hold a licence.
The vast majority of Pigg’s Peak Online Casino players are South African and therefore it would be very difficult for the casino to continue to operate having lost over 90% of its customers. They have now issued a statement to all their customers in South Africa urging them to make immediate arrangements for withdrawal of their funds.
The site will continue operating for a short while but will only be able to deliver services to customers outside of South Africa. Pigg’s Peak was claiming that the actually gambling takes place on the operator’s servers rather than on the player’s home computer. Since its servers are located in Swaziland and not in South Africa the gambling board ruled that South African’s who enjoy online gambling may only do so at gambling sites with servers based in South Africa, a ruling which could have serious knock-on effects for other South African online gambling sites.