DEALING WITH PROBLEM GAMBLING IN A DEVELOPING COUNTRY: THE

SOUTH AFRICAN APPROACH

Presentation To The

Portfolio Committee On Trade & Industry

By

Advocate Tibbs MajakeChief Executive Officer

National Gambling Board19 September 2003

BACKGROUND

Pre-1994: A flourishing horseracing industry, 17 casinos in ex-homelands (four of the existing provinces); estimated 150 000 illegal slot machines, four lotteries with non-existent regulations, problem gambling not acknowledged;

1996: Smaller and less popular horseracing industry, 30 casinos in nine provinces, dramatic decrease in illegal slot machines (less than 15 000?), LPMs in one jurisdiction, a single national lottery, legislative mandate to address problem gambling.

BACKGROUND (cont.)

2000: as required by conditions of license and provincial regulators, industry initiates a national responsible gambling programme through independent NGO (under NCSG at UCT);

2001: National Gambling Board convenes SAACREG, joint initiative of government regulators and industry. Assumes formal oversight of NRGP;

2002: SARGT formed by SAACREG to supervise NRGP. Dr Vincent Maphai appointed chairperson, with Chris Fismer as deputy chairperson

SARGT develops ‘social agenda’ and drives initiatives such as national self-exclusion policy, national advertising policy, etc.

Structures Created From 2001 To Deal

With Problem Gambling

Research

South African Advisory Council on Responsible Gambling

(SAACREG)

GovernmentRegulators

South AfricanResponsible Gambling Trust

(SARGT)

National Responsible Gambling Programme

(NRGP)

National Centrefor the Study of Gambling

Industry

Treatment and Counselling

TrainingPublic Education

GovernmentRegulators

Industry

Man

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WHY THIS MODEL

Reality of developing nation environment and circumstances, with other pressing public health priorities such as TB, Aids, severe primary health care needs, etc;

Inadequate funds and infrastructure in public health system to provide the service;

Professional operational independence, but control vested with a partnership of government regulators and industry;

Integrated programme; Very cost efficient with low overhead structure; Able to source top professionals in the field; SA’s approach receives widespread international

endorsement (e.g. Budd Commission) and now being replicated in UK, Macau, and elsewhere.

THE CHALLENGES

TO PROVIDE A SERVICE MEETING THE NEEDS OF…Both government and industry;different locations and 11 official languages;different degrees of gambling problems;different understandings of the problem;different forms of gambling;different skills in treating the problem;a heterogeneous society.

THE CHALLENGES (cont.)

A competitive industry with different priorities in each sector and each company;

11 different regulatory authorities; a relatively novice gambling

population with an inadequate understanding of problem gambling.

FUNDING

Comprehensive R10-million budget developed according to the SAACREG formula (0.1% of GGR) and controlled by SARGT;

Sector-by-sector contributions based on share of GGR (e.g. casino industry provides 50%);

Financially supported by horse racing, the casino sector, bingo, and LPMs. The lottery hopefully coming in shortly;

Public money (eg. Western Cape, Gauteng) has been forthcoming for specific initiatives e.g. schools’ programme and seniors’ initiative.