GAUTENG LEGISLATURE
PORTFOLIO COMMITTEE ON ECONOMIC AFFAIRS
PROPOSED AMENDMENTS FOR CONSIDERATION

The Committee deliberated on me detail of the Bill and recommends the following amendments for consideration;

1. Section 6(2)(b)
It is suggested that a definition of "sporting event" should be inserted in the bill.

2. Section 8(c)
Informal bet would open the floodgates of illegal gambling. It would allow stakes to be gambled between private individuals and it would be very difficult for the state to prove an intention to establish an enforceable contractual relationship between the parties.

It is suggested that the concept of informal bet be deleted from the bill.

3. Section 11
The Wide Area Progressive Jackpot (WAPs) and linked bingo games would arguably constitute "interactive games". These are currently regulated by provinces and can take place wholly within a province.

It is suggested that the word National be deleted from the section alternatively it should be made clear that the formulation of this action is not intended to imply that interactive games will be regulated exclusively at a National level..

4. Section 13
The Bill contains no provisions dealing with the extension of credit

It is suggested that the following clause could be inserted in the bill:
"A person licensed to make available gambling activity to the public must not extend credit, whether in the name of the licensee or a third party to any person for the purpose of gambling, contrary to the provision which may be prescribed".

5. Section 14
Currently the self-exclusion programme implemented by majority of the provinces works well. It is recommended that for practical purposes, the role of the National Gambling Board should be restricted to the maintenance of a database in respect of excluded persons.

In addition, it will not be cost effective for the persons contemplated in sub-clause (2) to make use of the High Court as a vehicle for the exclusion of problem gamblers

6. Section 15
It Is unclear from the use of the words "gambling premises" in sub clause (2) whether the intention is to require the prescribed statement in respect of all ancillary facilities located on or around licensed premises, which it is submitted would be impractical and unenforceable.

It would however appear that the clause relates to all activities on the licensed premises where gambling is available (i.e. the entity complex as opposed to the designated area). The logical implication of this is that the slogans warning of the dangers of gambling will be required in respect of advertisements by movie houses and restaurants located on licensed premises.

7 Section 16 (3) and (4)
The regulatory activities contemplated herein can be effectively performed at a provincial as opposed to National level-

8 Section 17 (1)
The Bill contains no provisions dealing with the regulation of cash dispensing machine at licensed premises.

It is suggested that this clause be amended as follows:

"A person must not operate a cash dispensing machine on licensed premises contrary to such provisions as may be prescribed"

9. Section 19-23
Section 19 to 23 inclusive put in place a registration procedure, which is to all intents and purposes practically unworkable and adds no value if its aim is reliably to track the movement of restricted gambling devices.

It is accepted that all devices should be certified and approved before being distributed and that prescribed devices should be licensed or registered in the sense currently contemplated in provincial legislation before being exposed for play. This is the purpose (and purport) of Clause 20 of the Bill. It is, however, impractical to insist on all prescribed devices being registered in the manner contemplated in the Bill. This is all the more so if regard is to be given to the definition of "gambling machine", since all gambling machines are prescribed gambling devices and as such subject to registration. The definition or "gambling machine" is wide enough to cover the software (including small electronic components, such as chips) housed in gambling machines, as well as roulette wheels and similar gambling devices. It will be impossible to comply with proposed registration procedures in respect of computer chips These cannot have badges and labels attached to them, as contemplated in the Bill.

It is recommended that the manufacturer should be required to keep a record of the devices ab initio with registration taking place only at the time of transfer of possession or ownership of the devices, as is the case with firearms and motor vehicle licences, as is the case with firearms and motor vehicle licenses.

The proposed registration regime (to the extent that it is aimed at controlling the movement of physical machines, will in any even I add no regulatory value for the following reasons:

(i) Software and other vital components of gambling machines are constantly being upgraded or altered subject to regulatory control by the provincial licensing authorities.

(ii) All gaming machines have unique serial numbers permanently affixed to them at the time of manufacture which can be used for tracking purposes in the Same way as the registration number contemplated by the Bill. (See for instance SABS 1718- paragraph 4.2 and SASS 1718-2 paragraph 4.3.1 which require this for all gambling machines before they can be certified).

(iii) The register has no purpose if it is only intended to be used to control the movement of cabinets, irrespective of the individual components thereof. The cabinets are merely physical structures which house the vital software controlling all relevant aspects of the games offered.

It is suggested that this sections be drafted in line with the above comments.

10.Section 26 (1)(a)(iii)
It is suggested that this sub section be deleted as the province is best suited to determine how the machines may be deployed within its borders

11. Section 28
It is recommended that clause 28(2)(b) be amended to read "to work for the holder of a national licence within the gambling industry". The reason for this is that generally only the employees at national licensees will operate in more than one province and it therefore makes sense for them to apply for a national employment licence. However, in respect of other employees these are essentially provincially based and the regulatory demands of the environment in which they work may well differ from employer to employer and province to province. For example, a dealer licensed at one casino cannot simply transfer to another casino without it being ensured that he or she is adequately trained to comply with the internal control standards of his or her new employer.

In addition, members of the public will easily be able to determine which regulatory authority any complaint regarding that employee should be lodged. Furthermore, it is a prerequisite for effective control of a licensee that a provincial licensing authority has effective jurisdiction over the licensee’s employees and knows who is employed by such licensee or exercises control over such licensee, something it can only do if such persons and staff are registered by it against that licensed employer.

Additionally, employees who work at provincial licensees are generally employed for substantial periods, so frequent movement between licensees will be the exception, rather than the rule.

12 Coming into operation of the bill
Due to the different content and drafting style of the bill ants in order to avoid conflict between National and Provincial Legislation, it is suggested that the Bill come into operation after the following has happened.

- The regulation in terms of the bill has been developed.
- The provinces have been given sufficient time to redraft the provincial legislation.

5. NEGOTIATING POSITION ADOPTED BY THE COMMITTEE
The Committee supports the principle of the National Gambling Bill [B48B-2003] and in respect of the detail of the Bill, the Committee’s position is as proposed in item 4 above.

The Deputy Minister Mohapi
Chairperson: Portfolio Committee on Economic Affairs