Speaking notes for the Premier in his capacity as MEC for gaming and Betting Dinner with stakeholders hosted by the KZN Gambling Board, Suncoast Casino, 6 July 2012

New era

The KwaZulu-Natal Gaming and Betting Act, 2010 has ushered in a new era of prosperity for the KwaZulu-Natal gambling industry, which should enable the industry to step up its own efforts in bringing about socio-economic development, both through revenue generation and directly, through its own projects, to the benefit of the people of the province.

The industry is now regulated in a manner which allows its expansion, while any harm brought about through its growth, is minimized. The new Gaming and Betting Board Members have taken over the functions and powers of the newly established Gaming and Betting Board.

History

The new KwaZulu-Natal Gaming and Betting Act, No. 08 of 2010 was promulgated and came into effect on 1 April 2011, simultaneously with the KwaZulu-Natal Gaming and Betting Tax Act, No. 09 of 2010. Many in this room will be aware that this province has been attempting to update its gambling legislation for a long time.

The first Bill to be named the "KwaZulu-Natal Gaming and Betting Bill" was finalized in 2007. Before the KwaZulu-Natal Gaming and Betting Bill, 2007 came about, however, a Bill entitled the "KwaZulu-Natal Racing and Betting Bill" was considered by the KZN Legislature for many years.

A draft KwaZulu-Natal Racing and Betting Bill was placed before Cabinet late in 2001, was approved in principle, and was published (by the Office of the Premier) for public comment on 8 November 2001, eventually receiving Cabinet approval in May 2003. Both the KwaZulu-Natal Racing and Betting Bill and an earlier version of the KwaZulu-Natal Gaming and Betting Bill have previously lapsed, because the KwaZulu-Natal Legislature could not pass them before the relevant term of government ended.

Quite frankly, we have taken far too long to get to this point. We must learn from the experiences undergone in the formulation of the piece of legislation before us. In future, we must be far more responsive to changes occurring in the gambling industry which require legislative adjustments.

Transformation

Quite frequently during the processing of the new Act, the special emphasis on transformation of the horse racing and betting industry in KwaZulu-Natal has been questioned. The belief is that somehow, transformation in other sectors of the gambling industry will be neglected. It is therefore important to place an emphasis on the fact that the entire gambling industry i.e. casino, limited payout machines, bingo and the horse racing and betting industry should be transformed.

One of the hurdles in the path of transforming the horse racing industry, is that the Board only licenses racecourses, totalisators and bookmakers, while the industry is comprised also of, inter alia, horse owners, horse trainers, horse breeders, jockeys, veterinarians, grooms, work riders and ordinary club members of racing clubs.

The board therefore cannot directly exercise its powers derived from licensing, over the entire horseracing industry. Other, more creative means must be devised. Priorities must be set. Mechanisms such as "transformation charters" must be explored. These factors explain the special emphasis on transformationof the horseracing and betting industry, in the legislation.

The length that it took to appoint new board members

The last board members were officially appointed in 2003. Their term expired in 2006, however we could not appoint new Board members as we were busy attempting to update the gambling legislation. This was the first expiry term of the Board that was never filled.

These board members continued to be in office due to the provision of the old KZN Gambling Act, 1996 which dictated that they would continue to be in office until the new Board members were appointed. This term further expired for the second time in 2009 and for the third time in 2011.

We can therefore conclude that it has taken 9-10 years to appoint the new Board members. This is the same time that it took us to repeal and replace the Regulation of Racing and Betting Ordinance, 1957 and the KZN Gambling Act, 1996.

The processing of this new Gaming and Betting Act has gone through two terms of government / the KZN Legislature i.e. pre-2004 and pre-2009.

Continuity

We have catered for continuity by retaining two Old Board Members.

Category

The new Act provides for the appointment of a Board that consists of persons who cumulatively have appropriate knowledge or experience in legal matters, gambling, community, tourism and more, as contemplated and listed in the Act and which we have strongly adhered to.

Frequency of Board meetings

The frequency of meetings of the Board will be guided by the recommendations of the King Report on Corporate Governance.

Appointed Board members

The appointed Board members are as follows:

  • Ms. SN Ngubane (Chairperson)
  • Mrs. PD MfusiDeputy Chairperson
  • Mr. AH Trikamjee (Member)
  • Dr. TI Nzimakwe (Member)
  • Ms. TP Mapipa Ndlovu (Member)
  • Proffesor I Konyn (Member)
  • Mr. PZ Dlamini (Member)
  • Mr. H Oosthuizen (Member)

The KwaZulu-Natal Gaming and Betting Regulations

Good progress has been made towards the finalisation of the KwaZulu-Natal Gaming and Betting Regulations, 2012 which have been legally certified and approved.

Province

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