Hospitality & Leisure

To obtain a liquor license for a new restaurant or bar in Gauteng, an applicant must apply for an on-consumption liquor license under the Gauteng Liquor Act 2 of 2003. The premises must be zoned for commercial use and comply with municipal planning and health requirements. A detailed floor plan and description of the premises must be submitted. The applicant must be a fit and proper person, which requires providing certified copies of IDs, police clearance certificates, and proof of tax compliance.

The application must be publicly advertised, including a notice displayed at the premises and in newspapers, to allow community members to lodge objections. The local municipality may also submit reports on zoning, health, safety, and traffic considerations. Once the license is granted, it sets out the trading hours and conditions of sale. Licensees must display the license prominently and ensure alcohol is sold responsibly, meaning it must not be sold to minors, intoxicated persons, or outside the licensed hours. Compliance with provincial regulations and municipal by-laws is required at all times, and failure to adhere can result in fines, suspension, or revocation of the license.

In South Africa, obtaining a casino or gambling license is governed by the National Gambling Act 7 of 2004 and the relevant provincial legislation, such as the Gauteng Gambling Act. A casino license is technically a type of gambling license that specifically authorises the operation of a casino, including table games and slot machines. Other forms of gambling licenses may cover activities such as slots, bingo, sports betting, or limited gambling operations.

The application process is complex and can take between 4 and 12 months, depending on the completeness of the application, due diligence, and any objections raised during public participation. Applicants and key personnel must meet strict conditions, including being fit and proper people, demonstrating integrity, financial stability, and having no disqualifying criminal convictions.

Applications require detailed documentation, including business plans, financial statements, technical and security plans, and anti-money laundering policies. The application must be advertised publicly, allowing community or stakeholder objections, and hearings may be held by the provincial gambling board to consider these. Once granted, the license specifies the type of gambling permitted, operational conditions, and reporting obligations. Failure to comply with these conditions, or submitting an incomplete application, can result in delays, penalties, or refusal of the license.

If a business is found serving alcohol without a valid license or outside the hours permitted by its license, it is committing a criminal offence under the Gauteng Liquor Act 2 of 2003 and other provincial Liquor Acts. The consequences can include:

• Fines and criminal charges – The business and responsible persons may be prosecuted, which can result in substantial fines or imprisonment.
• Confiscation of alcohol – Liquor being sold illegally may be seized by authorities, including the South African Police Service or liquor inspectors.
• License suspension or revocation – If the business holds a license, repeated or serious violations can lead to temporary suspension or permanent cancellation of the license.
• Civil liability – Businesses may face claims from third parties for damages or injury arising from unlawful alcohol sales.
• Closure of premises – Authorities can issue orders to close the business until compliance is achieved.

In addition, selling to minors or intoxicated people carries separate, severe penalties. Authorities also keep records of offenders, which can negatively impact any future license applications. Compliance with licensing conditions, trading hours, and responsible service of alcohol is therefore essential to avoid fines, legal action, or business disruption.

Hospitality businesses can avoid fines or closures related to not having a licence by taking proactive steps to ensure they are fully licensed and operating within the law:

• Obtain the correct licences before trading: Businesses must secure all required licences, including liquor licences for on-premises consumption and any other permits required by provincial or municipal law. Operating before approval exposes the business to fines, confiscation of stock, or closure.
• Understand licence conditions: Licences specify trading hours, permitted activities, and age restrictions. Businesses must adhere strictly to these conditions to avoid penalties.
• Display licences visibly: All licences must be prominently displayed at the premises, allowing inspectors to confirm compliance.
• Track renewals and applications: Keep a calendar of licence expirations and renewals, and ensure applications are submitted in time to prevent lapses.
• Train staff on legal requirements: Employees should know the rules regarding alcohol service, permitted hours, and restricted sales to minors or intoxicated patrons, so that violations are prevented.
• Engage with authorities proactively: Consult the provincial liquor or gambling boards if unsure about licence requirements. If an inspection occurs, cooperate fully and show evidence of compliance.

By implementing these steps, hospitality businesses minimise the risk of operating illegally, which is the primary cause of fines, licence suspension, or forced closure.

Cliffe Dekker Hofmeyr can provide comprehensive legal support if a liquor or gaming license application is objected to, or if a business faces penalties from the relevant board. The firm can draft legal submissions addressing objections raised by community members, local authorities, or competitors, ensuring that arguments are fully compliant with the Gauteng Liquor Act, National Gambling Act, or other applicable legislation. Cliffe Dekker Hofmeyr can also represent clients at hearings before the liquor or gambling board.

The firm advises on strategic engagement with licensing authorities to resolve disputes or clarify compliance issues. This includes presenting evidence that the business meets zoning, fit-and-proper, or operational requirements. If a license is refused or penalties are imposed, Cliffe Dekker Hofmeyr can assist with administrative appeals or review proceedings in court to challenge decisions that are unlawful, irrational, or procedurally flawed.

In cases of non-compliance, the firm can negotiate with regulators to reduce fines, prevent suspension or revocation of the license, and implement corrective measures to satisfy the board. Beyond reactive support, Cliffe Dekker Hofmeyr helps businesses establish internal compliance programs, policies, and procedures to prevent future objections or regulatory breaches, ensuring ongoing lawful operations.

Additionally, the firm provides legal assistance in taking action against unlawful gambling establishments operating without licenses. This includes advising clients on the applicable legal framework, assisting with investigations, drafting notices of closure, and representing clients in proceedings to shut down illegal operations. Cliffe Dekker Hofmeyr can also liaise with provincial gambling boards and law enforcement authorities to ensure that unlicensed operators are held accountable and that lawful businesses are protected from unfair competition.

By combining regulatory knowledge, litigation experience, and practical guidance, Cliffe Dekker Hofmeyr helps businesses defend their license applications, respond effectively to objections, comply with regulatory requirements, and take action against illegal operators, minimizing the risk of penalties and protecting the integrity of licensed operations.