KwaZulu-Natal Gaming and Betting Board
PERFORMANCE IS A KEY MEASURE OF SUCCESS.
RUNNING A COMPANY IN THE PRESENT ENVIRONMENT CAN BE QUITE CHALLENGING YET YOU HAVE MET HIGH ENTRY LEVEL FOR THE TOP PERFORMING COMPANIES PUBLICATION. TELL US WHY YOU HAVE ACHIEVED SUCH POSITIVE RESULTS?
It has been through the hard work and commitment of the organisations’ staff that we could realise the results that were achieved. The KwaZulu-Natal Gaming and Betting Act 8 of 2010 (herein after referred to as “the Act”) came into effect on 1 April 2011 and sets out the role and mandate for the Provincial Gambling Regulator.
The KwaZulu-Natal Gaming and Betting Board took on the challenge of leading a newly-merged entity and upon appointment in 2012, the Board implemented a turn-around strategy which contributed to the current levels of performance and financial results. The KwaZulu-Natal Gaming and Betting Board contributed R403 924-million to the Provincial fiscus during 2012/2013 financial year.
The organisation included in its priorities the rollout of socio-economic development projects, and the contribution by its licensees to the upliftment of previously-disadvantaged communities. The combined expenditure on CSI projects by casinos and route operators was R8 239 887.02 for the financial year. Another contributor to the results was the Board’s role in regulating a growing and maturing gambling industry (Casino, Limited Pay-out Machines and Bingo). Initiatives took place within the entity to assist in enhancing regulatory oversight, including managing of non-compliance by the industry. The Board views its role as an enabler in terms of Provincial Development Plans therefore policies and procedures employed by this public entity must have alignment to Provincial Government’s policy frameworks.
The public entity has excelled in terms ofproviding for its mandate, as evidenced through he achievements mentioned below:
• Increase in the regulation of industry through setting rules and adjudicating upon non-compliance cases investigated by its Monitoring and Compliance Division and prosecutedby its Legal department;
• Overseeing the rolling out of new gaming initiatives in peri-urban and previously-marginalised areas to stimulate socio-economic development, tourism and job creation;
• Substantially increase its revenue collection for the Province;
• Implementation of a transformation agenda which supports Black Economic Empowerment, amongst these is the rollout of Type A LPM sites to previously-disadvantaged groups in order to facilitate the growth of the SMME sector; and
• Encouragement of job creation and skills development within the sector.
DEFINE STRATEGIES ADOPTED BY THE MEMBERS OF THE BOARD WHICH HAVE ASSISTED IN ACHIEVING THE KWAZULU-NATAL’S GAMING AND BETTING BOARD’S GOALS?
Strategic leadership employed by the Board and the Office of the Chief Executive Officer has allowed for the organisation to achieve its planned programmes. Performance is a key measure of success. The entity monitors its performance in line with the National Programme for performance as issued by National Treasury. Proper financial administrative and financial management controls are in place as the public entity is regulated by the Public Finance Management Act 29 of 1999 and the Treasury Regulations.
In addition, performance targets have been set for each sub-programme and functional plans developed, so performance is constantly monitored. The organisation has embarked upon a project targeting the improvement of business processes so that it may continue to regulate a maturing and technologically-progressive industry and support developments within the sector. In addition, a risk-based approach was considered when reviewing the Board rules which set minimum standards of compliance for the industry.
WHAT IS THE VIEW OF THE KWAZULU-NATAL GAMING AND BETTING BOARD ON TRANSFORMATION IN THE GAMING AND BETTING SECTOR?
As this is one of its key priorities, the Board focused its efforts on ensuring commitments to transformation are made as part of the conditions attached to licences which are issued by the Board. These are in line with B-BBEE. In addition, the Board has put in place processes to facilitate the monitoring of its licensees meeting these transformation and corporate social investment commitments.
WHAT IMPACT IS THE STABLILISING OF THE GLOBAL MARKETS HAVING ON THE GAMING AND BETTING
INDUSTRY IN THE COUNTRY?
The South African gaming market is well-regulated in respect of land-based casinos and other legal gambling sectors. Currently, internet gaming is not legal in any of the jurisdictions in South Africa. Revenue is however, being lost in foreign exchange as the country cannot yet benefit from the taxes derived from this form of internet-based gambling. The Board is currently involved with the relevant national forums wherein the proposed position.
WHAT IS THE KWAZULU-NATAL GAMING AND BETTING BOARD’S APPROACH TO RESPONSIBLE GAMBLING?
All gambling and betting operators are required to adhere to the National Gambling Act when it comes to responsible gambling. The Responsible Gambling programme is aimed at minimising the negative impact of gambling within society. Certain licensees have also adopted an internal self-exclusion programme where punters can exclude themselves from the licensed premises for a period of time. The Board has recently finalised its gaming rules and has included a provincial self-exclusion process.The Board undertakes periodic research into the implications of legalised gambling in the province.
DESCRIBE THE STANCE ADOPTED BY THE
KWAZULU-NATAL GAMING AND BETTING BOARD
IN RELATION TO CSI?
The pillars of the National and Provincial development plans include job creation and poverty alleviation. The Board seeks to align the objectives of CSI initiatives to both National and Provincial development priorities. There are five casinos, four route operators and one Bingo operator in the Province which are required in terms of the Board resolutions and the Act, to contribute towards community development through CSI. The areas of contribution extend to health and welfare, education, community upliftment projects, sports, and recreation.
DESCRIBE THE BENEFITS OF EMPLOYING CSI INTHE SECTOR?
An amount of R6-million was committed by Sibaya Casino to the Lungisisa Indlela Village (LIV) project in Durban (Amaoti informal settlement) as a major CSI project. R5.8-million has been contributed towards building a school.
Suncoast Casino has identified the Chesterville Education Project as a major CSI project. Further to that, Suncoast Casino contributed R1.5-million towards the Jacob Zuma Trust Fund. Blackrock Casino has committed to contribute an amount of R2 040-million as to fund a Gambling Social Impact Study by the Board. Job creation is the ultimate stimulus for socio-economic development in the Province. As such, the Gaming and Betting industry in the Province provides employment for a total of 3073 permanent employees. Tsogo Sun has announced a major expansion in Durban, where the intention is to further contribute to job creation, tourism, and CSI.