Address by Mandisi Mpahlwa, Minister of Trade and Industry at the Fifth Biennial Gambling Conference

Delegates to the Fifth Biennial Gambling Conference hosted by the National Gambling Board of South Africa

I think the best advice I received regarding gambling is captured in a Chinese Proverb that teaches us that: "If you must play, decide upon three things at the start: the rules of the game, the stakes, and the quitting time". But tonight we are not yet quitting because gathered here are the representatives of a large number of institutions. Not only are members of the National and Provincial Gambling Boards attending, but it is also our honour to host other regulators from Africa and further field, representatives from all the different sectors of the gambling industry in South Africa, and many other role players including those people representing the interests of the public participating in the offerings of the industry.

Allow me to particularly welcome two groups of representatives to South Africa:
Firstly, I am advised that the Steering Committee of the International Association of Gambling Regulators (IAGR) held their mid year meeting in South Africa to coincide with this conference. We are honoured by the fact that this eminent body of international regulators chose South Africa to be the host of its meeting. We regard their presence here as confirmation that South Africa is considered to be a leading country in setting very high standards of best practice in policy implementation and regulation of gambling. I trust that your meeting was successfully concluded and that your interaction with other regulators at this conference will add value to your stay in South Africa.

I also wish to use this opportunity to express the view that we hope the Steering Committee's meeting in South Africa will be the first step in inviting South Africa to host the annual conference of the International Association of Gambling Regulators, in the near future. I must say, we have no hesitation in encouraging you because you can bet on the fact that we will host a very successful 2010 FIFA World Cup!

I also especially welcome our guests from a number of African countries. Because when we became a democracy 14 years ago, we made a solemn promise that we would immediately, establish closer links with all of Africa, as our destiny as a nation, is very much intertwined with the destiny of our continent. I am glad to say that fulfilling this promise has been made so much easier by the positive reception we have received from our African sisters and brothers. And your presence here today serves to deepen that promise.

In the same vein, we have over the last few years also been greatly encouraged by the growth in the number of African countries participating in the Gambling Regulators Africa Forum (GRAF). These closer links we are forging are absolutely vital for promoting best practices in policy formulation, legislation and regulation of gambling. They are also vital because this is a complex and innovative industry which we cannot effectively regulate without close co-operation. Therefore, the challenge in future will be even closer co-operation so that we are adequately prepared to confront the many challenges that will arise.

Ladies and gentlemen, there are a number of fundamental issues in regard to the gambling industry that we must continue to emphasise. Firstly, no government can regard gambling as simply a generic industry. It is in many senses a special industry, often very controversial and it poses many challenges with regard to appropriate public policy responses. It undoubtedly has serious and harmful social consequences when abused, whilst on the other hand, as detailed by Deputy Minister Davies this morning, it also provides opportunities for development and expanding economic opportunities. It thus requires very specific and balanced responses from government to ensure success, whether it is in regard to policy, legislation or regulatory matters.

Secondly, in seeking this balanced approach, the key challenge is to minimise the negative impacts of gambling and to foster and optimise the potential and real positive outcomes. This has been our approach ever since 1994, when this democratic government inherited an industry that was poorly regulated or often not regulated at all. Since then we have learnt, experienced and achieved much.

Challenges relating to illegal activities have been largely addressed and excellent legislation has been promulgated and refined when necessary. In addition, significant new public policy responses to problem gambling have been implemented. It is; however, clear that we cannot rest on our laurels. And our third major challenge is that continuing technological developments and advances have produced a number of new frontiers of concern for regulators. Finally, we are seeing significant gains in broadening economic participation in South Africa and it remains important for this industry to stay the course in this regard.

So, whilst policy, legislation and the regulators has certainly served us well these past years, in moving forward we must ask: are we as well equipped and prepared for the next fourteen years as we should be? Indeed, we should ask: are we fulfilling the mandate received from our legislators when they declared in the preamble to the National Gambling Act, 7 of 2004: that it is desirable to establish certain norms and standards so that gambling activities are effectively regulated, licensed, controlled and policed.

Secondly, those members of the public who participate in any licensed gambling activity are protected. And thirdly, that society and the economy are protected against over-stimulation of the latent demand for gambling.

The critical issue therefore is whether we are still effectively exercising our mandate especially as new technological advances pose challenges that will require new responses. In addition, the experience we gained over the years now gives us the wisdom of hindsight and we must use it. So, I will soon begin discussions with the National Gambling Policy Council, to assess whether it would now be an opportune moment for a comprehensive policy review on gambling. Such an exercise would not be aimed at unravelling the gains we have made in regulating this industry but rather to ensure that we remain on the cutting edge of best policy responses to the many intricate and new challenges posed by this industry.

Ladies and gentlemen, I think this is also an ideal opportunity to thank the National Gambling Policy Council for their leadership in this area. The Policy Council, comprising the Minister of Trade and Industry and MEC's is responsible for the oversight of gambling activities of all nine provinces and are very well positioned to guide on matters of policy which are of national importance. So in the months to come, the Council will consider matters such as the central monitoring of limited pay out machines, bingo and to consider reports on Broad-Based Black Economic Empowerment in the gambling industry in all provinces.

Other notable developments include the Amendment Bill currently serving before Parliament, which aims to introduce a regulated environment for interactive or online gambling. The difficult passage of this Bill, through the legislature, is indicative of the seriousness with which our legislators approach matters of gambling and we should all bear this in mind when formulating policy or for that matter, when industry introduces innovations.

With regard to the issue of Broad-Based Black Economic Empowerment in this industry, the Policy Council will soon receive a report compiled by all Provincial Gambling Boards. This information will provide us the opportunity to assess progress and to address any challenges there may be in this area. I think it is also important to say that the Department of Trade and Industry remains very much aware and takes a keen interest in the excellent work being done by the South African Responsible Gambling Trust under the chairmanship of Dr Vincent Maphai. Although we are a leading country in the world in this regard, we should never become complacent and should ensure that through constant research and progress, we remain at the forefront of promoting responsible gambling and addressing problem gambling.

This is a very important issue in the context of South Africa, as we not only have to address problem gaming in its usual context, but also in an environment where poverty remains a challenge. It is critical therefore that the potential problems that poor and unemployed people may encounter with or because of gambling should remain a top priority of not only the National Responsible Gambling Programme, but of all the role players in this industry. None of us should take a short term view with respect to this matter, as it holds the potential for serious ramifications for the industry as a whole, if not properly considered and addressed.

I have therefore noted with appreciation that the National Gambling Board will soon commission its third research project with regard to the social and economic impact of gambling in South Africa. Longitudinal statistics, building on previous reports in this regard, will be an important tool to assist in formulating policy in the future.

So to end off, it only remains for me to wish you well in your deliberations during this conference. From what I have seen, the subject matters to be discussed over the three days of conference are wide-ranging, sometimes controversial but certainly all important. I trust that robust interaction will result in further advances in your thinking on these topics and that interaction with our international guests will allow all to depart from here with a better understanding of best international practices to deal with the key issues as they arise as well as strengthened relations amongst all of us to ensure continued co-operation on all the common challenges we face with regard to gambling.

I thank you.

Issued by: Department of Trade and Industry
16 April 2008