NATIONAL GAMBLING BILL

1
NATIONAL GAMBLING BILL

• Submissions delivered to the Portfolio Committee
  of the National Parliament by the National
  Gambling Board and various provincial licensing
  authorities
• THURSDAY, 18 SEPTEMBER 2003

2
Comments of National Provincial Gambling Boards
on National Gambling Bill B48-2003Thursday,
18 September 2003

• Clause 1 definitional issues
• cash dispensing machine
• casino
• family member
• financial interest
• gambling machine

3
Comments of National Provincial Gambling Boards
on National Gambling Bill B48-2003Thursday,
18 September 2003

• Clause 1 definitional issues
• informal bet
• interactive game
• wide area progressive game
• linked bingo
• open bet

4
Comments of National Provincial Gambling Boards
on National Gambling Bill B48-2003Thursday,
18 September 2003

• Clause 4 totalisator bet
• Amendment of sub-clause (2)(a) and deletion of
  sub-clause (2)(b)
• Clause 6 pay out
• Amendment of sub-clause (2)(b)
• Clause 8(1)(c) informal bets prohibited
• Evidentiary difficulties
• Qualification of or conditions precedent to
  prohibition?

5
Comments of National Provincial Gambling Boards
on National Gambling Bill B48-2003Thursday,
18 September 2003

• Clause 12 minors
• Prohibition only in respect of restricted
  gambling activities?
• Clause 13 prohibition on credit
• Certain classes of licensee dependent on credit
  betting would be obliged to cease operations
• Impact on casinos effect on revenues
• Impact on fulfillment of bid commitments
• Collective impact of prohibition of credit and
  cash-dispensing machines on licensed premises

6
Comments of National Provincial Gambling Boards
on National Gambling Bill B48-2003Thursday,
18 September 2003

• Clause 14 excluded persons
• Role of National Gambling Board
• High Court as vehicle for exclusion of problem
  gamblers cost effectiveness?
• Degree of diligence required by licence holders?
• Clause 15 advertising
• Applicable to ancillary premises?
• Practicability and enforceability?

7
Comments of National Provincial Gambling Boards
on National Gambling Bill B48-2003Thursday,
18 September 2003

• Clause 16 winnings withheld
• Practicability of requiring payments in
  sub-clause (3) and investigations in sub-clause
  (4) to be dealt with by the National Board?
• High Court procedure in sub-clause (4)(b)
  conflicts with certain provincial statutes and is
  not cost-effective.
• Clause 17 proximity to schools
• Existing schools near licensed premises?
• Schools built subsequent to commencement of
  licensed operations?

8
Comments of National Provincial Gambling Boards
on National Gambling Bill B48-2003Thursday,
18 September 2003

• Clauses 19 to 23 Registration of gambling
  machines and devices
• Clause 20 formerly proposed by National and
  Provincial Gambling Boards
• Registration of all gambling devices impractical
  bearing in mind
• the wide definition of gambling device, and
• the wide definition of gambling machine, which
  may include software, such as computer chips and
  items such as roulette wheels
• Recommended that registration should take place
  at time of transfer of ownership from the
  manufacturer, as with firearm and motor vehicle
  licences.

9
Comments of National Provincial Gambling Boards
on National Gambling Bill B48-2003Thursday,
18 September 2003

• Clauses 19 to 23 Registration (continued)
• Proposed registration regime adds no regulatory
  value, since
• Upgrades to gambling machines and a variety of
  their components occur frequently
• All gambling machines have unique, permanent
  serial numbers attached to them for tracking
  purposes, which is a pre-condition of
  certification SABS 1718, paragraphs 4.2 and
  4.3.1
• machine cabinets are merely physical structures
  which house vital software controlling all
  relevant aspects of the games offered

10
Comments of National Provincial Gambling Boards
on National Gambling Bill B48-2003Thursday,
18 September 2003

• Clause 25 Certification by SABS
• Sub-clause (2) agreed that SABS should issue
  letters of certification provided testing
  procedures are not duplicated in the process
• Clause 38 National employee licences
• Recommended that national employee licences
  should be issued only to employees of national
  licensees, because
• Generally, only these employees will work across
  provincial borders
• Regulatory demands of working environment may
  differ from employer to employer and province to
  province
• Important that employees should be registered by
  provincial licensing authority against a specific
  employer to ensure meaningful control and
  resolution of complaints
• Provincial employees generally employed for
  substantial periods movement the exception
  rather than the rule nonetheless mitigated by
  information sharing

11
Comments of National Provincial Gambling Boards
on National Gambling Bill B48-2003Thursday,
18 September 2003

• Clause 45(2) Number of casino licences
• Recommended that status quo should be retained
  for legal certainty
• Market adequately served by existing provisions
• Clause 53(2) review of commitments
• Renewal considered prior to expiry of licence
• Clause 65(1)(c)(iii) recommended deletion in
  view of comments on Clauses 19 -23
• Clause 66(2) engagement with National Board in
  regard to illegal gambling activities

12
Comments of National Provincial Gambling Boards
on National Gambling Bill B48-2003Thursday,
18 September 2003

• Clause 67 - Board membership criteria
• Definition of concepts partner associate
• Clause 74 repetition of PFMA provisions
• Already applicable as a matter of law
• Clauses 81 82 Criminalisation
• Inappropriate for all contraventions of the Act
  to be criminalised
• Should exclude the performance of administrative
  duties by regulatory authorities
• Clause 83(2) inappropriate that administrative
  penalties should exceed penalties to be imposed
  by Courts of Law (R10 million)

13
Comments of National Provincial Gambling Boards
on National Gambling Bill B48-2003Thursday,
18 September 2003

• Transitional provisions
• Item 2(1)(b) recommended inclusion of
  Regulation 3 in regulations to be repealed
• Item 3 interests of state, organs of state or
  organisations with which the state is involved
• Deletion recommended since matter resolved
• Item 6 Development of interactive policy/law
• Recommended rewording of Items 6(2) 6(5)
• Item 7 maximum number of casino licences
• Refer to comments made in respect of Clause 47
• Item 8 national register of excluded persons
• Refer to comments made in respect of Clause 14

14
Comments of National Provincial Gambling Boards
on National Gambling Bill B48-2003Thursday,
18 September 2003

• Thank you