The minister will now decide on the number of licences to be granted, which is a move away from the current system where provinces are allocated a fixed maximum number of licences.

The granting of licences will be determined by factors such as market competition, black economic empowerment and "the incidence and consequences of over stimulation of gambling", according to the new National Gambling Bill, introduced in Parliament yesterday.

Existing maximums under the 1996 act will remain in force until the minister makes a determination. The change in policy comes amidst concern about the proliferation of casinos, which generate 70% of gross gambling revenue amounting to R6,8bn annually and their social consequences.

The bill aims at tightening controls over gambling, but members of Parliament's trade and industry committee, concerned about the effect of gambling on poverty, believe it does not go far enough.

The bill broadens the scope of illegal gambling activities to include all unlicensed gambling activities, unauthorised interactive gambling on the internet and credit for gambling. Unlicensed activities will be prohibited on a uniform basis nationally for the first time.

The bill will also require registration of all gambling machines, and introduces a system of voluntary and court-ordered exclusion from gambling of problem gamblers.

Committee chairman Rob Davies said the effect of gambling went beyond addictive or compulsive gambling and incorporated the social context as well. It was disturbing to note, he said, that SA was ranked 14th in the world in terms of gross gambling turnover, but 39th in terms of gross domestic product and 91st in terms of GDP per capita.

Astrid Ludin, trade and industry deputy director-general for consumer and corporate regulation, said gambling provided government (excluding lotteries) with R492m in tax revenue in 2002. About R11,7bn had been invested in the industry, which was estimated to employ 50000 people.

The bill proposes a system of registration of gambling machines to deal with illegal gambling, as well as a system of national licences.

Restrictions will also be placed on advertising and no automated teller machines (ATMs) will be allowed in licensed premises.

In addition, the bill proposes to establish norms and standards for provinces and standards for gambling premises. It clarifies the relative jurisdictions of national and provincial governments with respect to gambling law.

The bill assigns legislative functions to national government, which will issue national licences, while the monitoring and enforcement functions are assigned to provincial governments.

The bill also proposes the establishment of a new body, the National Gambling Policy Council, in addition to the National Gambling Board, which will oversee the issuing of licences by provincial bodies. The policy council will also be responsible for dispute resolution.

Source: www.gamblingmagazine.com