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At the latest London gaming policy seminar hosted by the University of Salford, the South African approach to gambling legislation was recommended to other jurisdictions, including Britain. Prior to 1996 all gambling apart from horseracing was illegal in South Africa, except for in the designated Homelands, but there were estimated to be around 150,000 unregulated and illegal slots machines operating.
Derek Auret, Chief Executive of the Casino Association of South Africa and former Chairman of the Western Cape Gambling Board, commented that South Africa had been able to benefit from the experiences of other gaming legislation around the world and learn from those mistakes and successes to give South Africa a rigorously regulated and tightly controlled industry - a model that Britain could do well to emulate for the creation of jobs, investment in tourism infrastructure, stimulation of local economies and government tax revenue.
It was suggested that there are five key lessons to be learnt from the South African and Western Cape experience. Firstly that governments must decide their objectives from the outset – whether purely fiscal or with regeneration goals. Secondly, a decision must be made on any ‘add-ons’ required (such as licences tied to additional financial benefits for the community) and potential investors informed. Thirdly the licensing process must be as transparent, equitable and comprehensive as possible, and the adjudication authority to be given maximum independence. The fourth key is to keep all applicants fully up to date on all developments. The final key is to conduct the whole process in a manner of partnership between applicants and authority; with the aim of this partnership continuing after the licence is granted.
The South African government collects revenue of around R2.7 billion (US$442 million) each year from the gaming industry. Over 100,000 jobs have been created either directly or indirectly, and more than R12 billion US$1.9 billion) has been invested in facilities and amenities particularly in tourism. Unique to South Africa, the gaming industry has also given the opportunity, under the Black Economic Empowerment (BEE) scheme, to a previously disadvantaged sector of the population to hold interest and voting rights in gaming companies. The South African National Responsible Gambling Programme is also a model partnership between the government, private and public sector to limit the problem of gambling disorders.
Derek Auret was of the opinion that British policymakers could find that licensing a number of large casinos, and fewer small ones, would bring better long-term advantages in substantial tourism and public infrastructure investment as well as revenue. "Some of the lessons from the Western Cape's policy framework, which would be particularly useful to British policymakers include a regulatory authority independent of the political executive, distributing casino opportunities throughout the jurisdiction so as to attract investment and infrastructure to rural areas, ten-year geographic exclusivity in exchange for a substantial licence fee payment to the state, and a requirement that casino licence applicants provide non-gambling amenities and other public infrastructure, especially in the tourism sector.” (E-01.26.06)
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