CEO's MESSAGE
The Board’s statutory mandate as prescribed in the National Gambling Act, No 7 of 2004, remained the same over the past three years. Although there wasn’t much shift from the 1996 Act, repealed by the 2004 Act, the new Act brought in more emphasis and variation to certain provisions and some new responsibilities.
Integrity and capability of Board members
The Board has evolved into a cohesive and knowledgeable strategic unit, capable of executing the mandate of the National Gambling Board (NGB).
Spirit of teamwork within the industry
The unequivocal recognition that the industry accords to the efforts of the Board members, served to strengthen the Board’s resolve and commitment to advancing its functions and activities. The Board is discharging its duties and obligations in a transparent and honest manner; created an informed industry and protected the public so that the integrity of our industry is respected worldwide. South African operators, as a result, achieve a credible standing among the public and international stakeholders.
Performance of regulatory functions
The Board not only succeeds in performing its regulatory functions diligently, but also in enhancing the industry’s credibility and increased the public’s awareness about the potential challenges in gambling. The direct benefit of public education and awareness campaigns lead to clients’ appreciation knowing that dealing with licensed operators, they enjoy unequivocal protection from the Board and the respective Provincial Boards. This results in a significant increase in the level of confidence in participating in an expanded range of activities within the industry. Similarly, operators enjoy the benefit of the enhanced image of reliable entertainment and stability in the industry.
Regulatory challenges
The statutory regulation of an extensive and continuously evolving gambling industry which operates in a volatile, technology-driven and changing social-economic environment, is an exceptionally complex task. It entails implementation of a wide variety of different activities and functions spanning a multitude of disciplines, all to be accommodated in well crafted legislation.
Performance overview of the Board
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Supervisory functions in terms of the Financial Intelligence Act (FICA) Inspections at casinos.
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The betting (horse racing) industry was orientated on the obligations imposed by FICA on licenses and inspections conducted in the bookmaker industry. Regulators were also able to unite horse racing associations within the country. A joint association team and a team of regulators worked together to present uniform bookmakers and totalisators betting regulations and restructured sports betting tax. Constructive input was given to amend provisions of the National Gambling Act that relate to racing and betting.
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The NGB completed the Financial Action Task Force (FATF) Mutual Evaluation (completed monitory) Assessment (review) Questionnaire on Anti-money Laundering and Combating the Financing of Terrorism in preparation for the FATF review for South Africa
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Three qualitative research projects were conducted
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The perceptions of regular gamblers regarding responsible gambling with specific focus on electronic gambling machines
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The perceptions of regular gamblers regarding bingo with specific focus on electronic bingo machines
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The perceptions of female managers employed in the gambling industry regarding gender equity
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Involvement in litigation matters emanating from provincial gambling boards whereby NGB is cited as an interested party.
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The restructuring of two departments within the NGB and staff lending in positions of higher responsibilities.
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Strict control and monitor of the budget resulted in the turning of the financial performance of NGB from a defit to a surplus.
Central electronic monitory system
The Limited Payout Machine Industry has grown, not just in number of machines, but coverage in the country with more provinces like Limpopo, Free State and Gauteng joining in. Further, Ghana as a new entrant to the Gambling Regulators Africa Forum (GRAF), requested NGB to award Zonke Monitoring Systems permission to render monitoring facilities to them similar to South Africa GRAF encourages member states to upgrade their regulatory framework, with the view to having the continent on par in terms of goods practices and standards of regulatory governance.
Other national registries
The Board prides itself in developing national database systems for self exclusion persons and information with regard to probity investigations. Further work commence with the consultation on specifications for the national machine register that will serve regulators and the industry to control the movement of equipment within the republic of South Africa and across borders.
Uniform norms and standards within the industry
The NGB advised the National Gambling Policy Council (NGPC) to bring about harmony with regard to differences in provincial legislation. The Horse Racing and Betting rules for Bookmakers and Totalisators were reviewed and the new respective sets approved to be adopted by respective provincial gambling boards. In addition to standardised practice was a reformed tax structure of sport fixed bets.
Deterrence of illegal operators
Management has been working on a plan to root out illegal operators, especially in North West Province. The overall ground work as handed to the South African Police Services and the Asset Forfeiture Unit. Illegals were closed down in Rustenburg and assets confiscated, to be forfeited to the State.
Interactive gambling
The South African authorities have pronounced the stance with respect to internet-based gambling activities. Both Houses of Parliament approved the Bill in May 2008 which is now promulgated into law.
The 2008 International Biennial Gambling Conference
The conference was hosted by the NGB from 16 – 18 April 2008 at Emperors Palace (Kempton Park, Gauteng) to bring together all stakeholders and to inform regulators and the industry on their respective views regarding relevant gambling issues.
Gambling into the future
Over 10 years of developments within the gambling industry and regular amendments to the regulatory framework, the Board is of the opinion that this may be an opportune time to take stock of both activities. The Board made recommendations to the Minister of Trade and Industry that a similar commission be constituted to respond on the social economic impact of gambling, and the impact of technology in the industry so as to inform a proposed reformed regulatory policy or to confirm the status quo.
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