Gambling bill not up to scratch

Published Aug 22, 2007

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Parliament - The Casino Association of South Africa (CASA) on Wednesday urged further consultation and research on the draft National Gambling Amendment Bill.

In a presentation to the National Assembly's trade and industry committee - currently holding public hearings on the bill - CASA chairman Jabu Mabuza said the industry supported in principle legalisation and proper regulation of interactive gambling.

However, the draft bill was inadequate in a number of respects, and should be referred back for "further research, stakeholder consultation and redrafting", he said.

"In our view the amendments as tabled do not do the job adequately."

It was essential that everything possible be done to ensure that the advantages of legalising interactive gambling outweighed its disadvantages.

There had to be a level playing field. All that had been achieved, and all the benefits of the existing regulated gambling industry, should not be put at risk.

"To ensure consistency and fairness, for example, interactive operators ought to pay a rate of tax no less than those paid by other sectors of the gambling industry," Mabuza said.

New interactive gambling operators should also be subject to no less stringent requirements regarding empowerment, probity, financial credibility, skills development, job creation, regulation, taxation, and measures to prevent underage gambling and the promotion of responsible gambling, than those applied to land-based casinos.

Among other things, it was essential for interactive gambling legislation to comply with South Africa's commitments in terms of international treaties and conventions.

"In our view, much more homework also needs to be done on complex issues surrounding international reciprocity in this sector of the industry," he said.

A number of other key issues, including establishing guarantees to cover debts to players and the fiscus, equal access to communication platforms, duplication of inspections, personal licenses, and the role of interactive intermediaries needed greater certainty and resolution.

Therefore, CASA strongly believed the bill should go back to the drawing board for improvement, as well as more extensive consultation with informed national and international stakeholders.

South Africa had some of the world's most effective and well-formulated legislation governing land-based gambling.

It stood to reason that legislation for interactive gambling should be as comprehensive and thorough.

"The current proposals do not accomplish that goal," Mabuza said.

The bill is intended to pave the way for regulating interactive gambling, such as on the Internet.

It provides, among other things, for approval of interactive games, equipment and software, registration of players, dispute resolution and "fair" treatment of players.

Other provisions protect minors and vulnerable people from harm and exploitation.

The bill further deals with advertising, licensing, compliance and enforcement, problem gambling, and money laundering. - Sapa

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