Response to the Gambling Review Commission Findings – Presentation to the Portfolio Committee: Trade and Industry

16 November 2011

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Presentation by the National Gambling Board, to Parliament on the Gambling Review Commission Report

NGB is an agency of the Department of Trade and Industry (the dti)

Derives its mandate from the dti, ensures that the gambling industry is well regulated and that the public is protected from the consequences of gambling

The NGB’s mandate is guided by an Act of Parliament – the National Gambling Act 7, 2004

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NGB/Ipsos Markinor

May 2011

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Previous slide depicts that:

68.2% of the South African population does not engage in any gambling activity (based on a representative sample of 3500 respondents drawn from rural, semi rural and metro). Data includes all variables such as race, household income, education, gender, age and working status

Critical to regulate in a manner that balances the growth of this industry while ensuring communities are protected from excessive gambling activities that impact negatively on households. The data affirms the benefits of a well regulated gambling regime.

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Incidence by community size as a % of total population

35.9

64.1

26.8

17.9

12.7

7.6

14.1

10.3

0.7

0.5

Metro

Non-metro

Total population

Total gamblers

Gamblers excl Lottery only

Gamblers - Lottery ONLY

Problem gamblers

Proportionally the gambling incidence is higher in metro areas than non-metro areas with 26.8% of persons residing in metro areas indicating that they have gambled in the last 12 months compared

to 17.9% in non-metro areas.

%

Ipsos Markinor 05/11

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Previous slide depicts that:

In proportion of those who gamble do so more in metropolitan than in rural areas. Therefore, those in rural areas gamble less than those in metropolitan areas

Data corroborates the Eastern Cape Gambling Board findings of its 2009 research, which found that communities in rural areas of the province were more anti–gambling than those in metros (ECGB - TNS 2009; p83)

Need to monitor and exercise oversight on proximity & access remains critical in the work of gambling regulators

An area where both the National Lotteries and the National Gambling Board must collaborate as responsible regulators to counter negative effects of gambling: place stricter monitoring controls.

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Since the completion of the GRC in the past year, the NGB has evolved robust data from which regulators will draw in order to understand provincial gambling patterns

New data:

confirms the findings of the GRC - that South Africa is not an over gambled country

Indicates that gambling is not tourism driven but largely citizen driven.

Demonstrates the success of an effectively regulated industry 9

NGB is developing a dashboard of critical indices aligned to the priorities of government with respect to jobs creation, empowerment of the emerging small businesses and efforts to bolster small to medium companies

Research of the NGB will enable all regulators to update their data through an automated system or a secured path

Through its repositioned strategy, the NGB has assumed leadership roles with respect to proposing coordinated research on the size and shape of the industry and the patterns of gambling in South Africa - Adoption of a comprehensive strategy for the NRGP 10

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Top 5 Internet activitiesThough social networking is relatively new in South Africa, it has shown a realincrease from 2009 to 2010. it is notable that increasing social networks willbe modes for accessing gaming or gambling activities.

2009 2010

Activity Actual number

Percentage Actual number

Percentage

1. Searching 3 082 000 9 4 087 000 12

2. Email 2 656 000 8 3 632 000 11

3. Research/obtaining info

2 357 000 7 3 158 000 9

4. Social networking

1 365 000 4 2 730 000 8

5. Banking 1 222 000 4 1 386 000 4

Source: SAARF AMPS 2010

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Proposed merger of the NGB and NLB – note that these have two entirely different mandates derived from different legislations; However there is need for collaboration to effectively regulate; research; responsible gambling; registers; advertisements and promotions, registration of machines and devices and the probity registers;

Act requires a complete overhaul to address all identified lacuna, and all approved new forms of gambling;

Expedite the promulgation of additional national norms and standards (code of best practices for regulation of industry as a whole) 23

Questions and Discussion

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