THE NEGATIVE EFFECTS OF ILLEGAL GAMBLING ON

LICENSED FORMS OF GAMING

PRESENTED BY ADVOCATE THEMBA NGOBESE

@ THE 12TH GRAF CONFERENCE

MöVENPICK HOTEL, ACCRA, GHANA

12 July 2016

THE NEGATIVE EFFECTS OF ILLEGAL GAMBLING ON LICENSED FORMS OF GAMING

ABOUT CASA

• CASA is a voluntary association which represents the interests of licensed casino operators in SA. 36 of the 38 operational casinos in SA.

• As at March 2015, our members had invested in excess of R40 billion in infrastructure leading to the development of world class entertainment destinations e.g. Sun City Resort, Sandton ICC & Cape Town ICC.

• In excess of 64 000 direct jobs, many of which give employment to people with no previous work experience. Excludes indirect jobs.

• In the FY 2014/15, members contributed R134 million in CSI. Annually.

• In the FY 2014/15 alone, members contributed R5.7 billion to the fiscus in tax revenue. Provincial Gambling Taxes/Levies (R1.8 billion), VAT (R1.9 billion), Corporate Taxes (R1.1 billion) & Other Taxes (rates etc.)(R0.9 million).

• Government had an effective 37% share (almost 40%) of the ‘value-added’ to the economy by the casino sector of R15.2 billion in the FY2014/15 and as such it is the largest de facto stakeholder in the casino industry.

• Members co-founded the internationally recognised responsible gambling programme (“NRGP”). Funds approximately 80% of it - 2015 budget of more than R25 million.

THE NEGATIVE EFFECTS OF ILLEGAL GAMBLING ON LICENSED FORMS OF GAMING

THE COST

• It discourages and parasite on legal investment initiatives

• A definite consideration for new or further capital investments• A hindrance to the socio-economic benefits that the licensed gambling industry provides:

• Contribution to the fiscus (tax revenues)• CSI contributions• Sustainable and decent employment opportunities

• Recent research findings internationally indicate that it is a major contributor to problem gambling

• Its facilitators do not adhere to responsible gambling practices• No contribution to the funding of responsible gambling programmes

• It tarnishes the image of the licensed gambling industry

• Employees are taught and encouraged to cheat the public/players• Minors are permitted to gamble• No player/customer protection e.g. no integrity of the games, no recourse for disputes• No adherence to labour legislation or any legislation• Often used as conduits for other illegal activities – Drug & Human trafficking, ML, TF

THE NEGATIVE EFFECTS OF ILLEGAL GAMBLING ON LICENSED FORMS OF GAMING

QUESTIONS / COMMENTS