Gambling body slates new bill

This is according to Casa chairperson Jabu Mabuza who was addressing the portfolio committee on trade and industry on Wednesday.

Mabuza said that while the industry supported the legalisation and proper regulation of interactive gambling in principle, more research into the commercial viability and socio-economic implications of a legalised interactive gambling industry, and further consultation with national and international stakeholders, was needed before parliament should accept the proposed bill.

Saying that the amendments as tabled "do not do the job adequately" Mabuza pointed out that there were a number of issues and shortcomings which need further thought and debate.

'Notable shortcomings'

"A notable shortcoming is the absence of any clear thinking with regard to taxation, which will determine the positive and negative effects, and ultimate success or failure, of the interactive industry," said Mabuza.

He said that high levels of tax on interactive gambling compared with other jurisdictions would discourage the entry of new operators into the market, while low taxation will prejudice other gambling sectors in South Africa. "Either way, the fiscus will lose."

Mabuza also said that without access to players in the United States - the world's biggest market - it was questionable whether the interactive industry in South Africa is even viable. "Our own domestic interactive gambling market is insufficient."

"There has to be a level playing field... 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.

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

Different standards

Mabuza said that there were already inconsistencies in the application of these standards among different sectors of the industry in South Africa. The lottery, for example - with 8 000 gambling outlets - had not been subject to the same advertising and other regulations, and made no contribution to addressing the question of problem gambling.

Mabuza also warned against going ahead with the amendments without due regard for international considerations.

"It is essential that our interactive gambling legislation is compliant with South Africa's commitments in terms of international treaties and conventions, such as the World Trade Organisation's general agreement on trade in services."

Mabuza said that there were a number of other key issues, such as 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, among others, which needed greater certainty and resolution.

"For all these reasons, we are strongly of the view that the bill should go back to the drawing board for improvement, as well as more extensive consultation with informed national and international stakeholders.

"Presently, South Africa has some of the world's most effective and well-formulated legislation governing land-based gambling. It stands to reason that legislation for interactive gambling should be as comprehensive and thorough," he said.

- Fin24