THE NEGATIVE EFFECTS OF ILLEGAL GAMBLING ON LICENSED FORMS OF GAMING PRESENTED BY ADVOCATE THEMBA THE 12 TH GRAF CONFERENCE MöVENPICK HOTEL, ACCRA, GHANA 12 July 2016

THE NEGATIVE EFFECTS OF ILLEGAL GAMBLING ON LICENSED FORMS OF GAMING ABOUT CASA CASA is a voluntary association which represents the interests of licensed casino operators in SA. 36 of the 38 operational casinos in SA. As at March 2015, our members had invested in excess of R40 billion in infrastructure leading to the development of world class entertainment destinations e.g. Sun City Resort, Sandton ICC & Cape Town ICC. In excess of direct jobs, many of which give employment to people with no previous work experience. Excludes indirect jobs. In the FY 2014/15, members contributed R134 million in CSI. Annually. In the FY 2014/15 alone, members contributed R5.7 billion to the fiscus in tax revenue. Provincial Gambling Taxes/Levies (R1.8 billion), VAT (R1.9 billion), Corporate Taxes (R1.1 billion) & Other Taxes (rates etc.)(R0.9 million). Government had an effective 37% share (almost 40%) of the ‘value-added’ to the economy by the casino sector of R15.2 billion in the FY2014/15 and as such it is the largest de facto stakeholder in the casino industry. Members co-founded the internationally recognised responsible gambling programme (“NRGP”). Funds approximately 80% of it budget of more than R25 million.

THE NEGATIVE EFFECTS OF ILLEGAL GAMBLING ON LICENSED FORMS OF GAMING THE COST It discourages and parasite on legal investment initiatives A definite consideration for new or further capital investments A hindrance to the socio-economic benefits that the licensed gambling industry provides: Contribution to the fiscus (tax revenues) CSI contributions Sustainable and decent employment opportunities Recent research findings internationally indicate that it is a major contributor to problem gambling Its facilitators do not adhere to responsible gambling practices No contribution to the funding of responsible gambling programmes It tarnishes the image of the licensed gambling industry Employees are taught and encouraged to cheat the public/players Minors are permitted to gamble No player/customer protection e.g. no integrity of the games, no recourse for disputes No adherence to labour legislation or any legislation Often used as conduits for other illegal activities – Drug & Human trafficking, ML, TF

THE NEGATIVE EFFECTS OF ILLEGAL GAMBLING ON LICENSED FORMS OF GAMING QUESTIONS / COMMENTS