Mozambique is seldom in the news when it comes to gambling and little has changed in the country since the 1994 law made casinos subject to being part of a complex with a minimum 250-room luxury hotel. The law also prohibited casinos being constructed on the offshore islands, known to have fragile ecosystems. These regulations are now set to change following recommendations from a working commission of the Mozambique Assembly, which yesterday voted unanimously to relax gambling restrictions.

The government has been considering changes to the 1994 law for some time. In 2007 the Economic Activities and Services commission met with officials from the only casino in the capital city Maputo, the Polano Casino, looking for suggestions on law revision. Naturally the casino was anxious to retain its monopoly position.

The Polano opened in 1996 and in 2007 was contributing some US$1.8 million a year in taxes. It has a special licence to operate as a members-only club as the existing law states that casinos must be at least 50 kilometres from the nearest city. The Sol Libombos Casino, on the border with Swaziland, is the only other casino in Mozambique and is open to the public as there is no city within 50 kilometres.

The bill to reform the 1994 law removes the 250-room hotel restriction and allows casinos to be developed throughout the country. Minimum investment will be US8 million, reduced from US$15 million. Casino control will be passed from the Ministry of Finance to the Ministry of Tourism, although Finance retains the power to inspect and tax casinos. Casino operators will be allowed to set up slots facilities in places such as shopping malls. Online gambling will be legalised.

The new attitude to gambling in Mozambique has developed from the need to strengthen the tourism industry and encourage investors. Under the old law only two casinos were constructed and now the government would like to see investment in areas such as the Gorongosa National Park, the Ponta de Oura beach resort and the industrial city of Matola. With the lucrative casino industry visible in neighbouring South Africa, Mozambique would like some of the action – particularly as the country expects an increase in visitors from the 2010 World Cup.

Despite the proposed wide scale relaxation of the present gaming law, there will be some tough restrictions. These include banning members of the government, bank managers, senior tax officials, and people who have officially been declared bankrupt from entering casino playing areas. All gaming equipment will be authorised by the General Gaming Inspectorate, which will be responsible also for ensuring that no money laundering activity takes place. (E-06.18.09)

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