The government is considering setting up a commission into the gaming industry as it thinks it might have become too liberal in the 12 years since gambling was legalised, according to Thursday's Business Report.

The commission would assess the multi-billion-rand industry in detail to establish if any activities should be curtailed, Mpho Mosing, deputy director for regulated industry at the department of trade and industry, said on Wednesday.

The body would also investigate possible illegal activities. However, she said that nothing had been finalised yet and the matter was being debated in the department.

A proposal has been sent to trade and industry minister Mandisi Mpahlwa.

"The minister is concerned with the proliferation [of betting activities]," she said.

The department was also aware of possible negative effects, such as gambling addiction. Mosing said person-to-person betting was one of the illegal activities to be probed.

According to the National Gambling Board of SA (NGB), the country's main forms of gambling are casinos, racing and betting, bingo and limited payout machines. There are 38 licensed casinos in the country, but one is not yet operational.

The two horse racing firms are Phumelela and Gold Circle.

The NGB's statistics for the financial year to March 2007 showed that gross gambling revenue increased 15 percent to R13.5 billion on the previous year.

Acting NGB chief executive Thebi Moja said gross gambling revenue rose to R15.6 billion in the 12 months to March this year. The sector contributed about one percent to gross domestic product.

Mosing said the commission would review the industry to see what improvements could be made. It would also look at socio-economic effects.

There are at least 130,000 people employed in casinos, racing and betting.