Resolution of legal issues clears way for debate on gambling bill

Slot machines at the Grand West Casino. Picture: Henk Kruger/African News Agency (ANA)

Slot machines at the Grand West Casino. Picture: Henk Kruger/African News Agency (ANA)

Published Mar 12, 2021

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Cape Town - The standing committee on finance, economic opportunities and tourism on Thursday decided that it could now continue with deliberations on the Western Cape’s 19th Gambling and Racing Amendment Bill after legal arguments which halted discussions last September were resolved.

The bill’s objective is to facilitate the financial self sufficiency of its regulator by introducing a new casino operator fee, providing for certain fees to be paid to the board and no longer to the Provincial Revenue Fund and a number of other provisions related to limited gambling machine (slot machines) operator fees.

During the previous committee sitting, debate stalled after a clash of legal opinions over the bill’s constitutionality between the legislature’s legal adviser Romeo Maasdorp and the department of the premier’s state law adviser Astrid Muller.

In Maasdorp’s view, the bill was open to a constitutional challenge on the basis of arbitrary differentiation in that certain categories of operators would be charged operator fees and not others. Muller, however, argued that differentiation was permissible, provided there was a rational basis for it.

Following the impasse, the committee decided that the best way forward for the bill would be for Maasdorp, Muller and the provincial treasury to sit together to discuss common ground, a report was then prepared for and submitted to the committee.

Yesterday Muller said: “We also agreed on the principles relating to rationality, which are, essentially, that there must be a rational relationship between the legitimate government purpose and the means or the method chosen to achieve that purpose.”

Meanwhile, the committee also agreed to conduct public hearings regarding the distribution of UIF Covid-19 Ters in the province.

To get the ball rolling, the committee will invite the UIF and the Department of Labour to brief it on the impact and obstacles that the Fund has faced in supporting vulnerable residents of the province since lockdown began nearly a year ago.

Acting committee chairperson Andricus van der Westhuizen said: “The UIF’s Covid-19 Ters Fund was meant to fill the gaps and offer a lifeline to workers and businesses, supporting them in keeping their doors open and food on the table.”

He said: “However, there have been alarming reports that funds paid over to businesses have not reached their employees, or that businesses have been unsuccessful in applying for funding from the UIF.”

Cape Argus