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Interactive gambling excites little response

By Leon Engelbrecht, ITWeb senior writer
Johannesburg, 23 Mar 2007

The response to a call for public submissions on interactive gambling has been somewhat 'underwhelming', says the Department of Trade and Industry (DTI).

Brian Muthwa, the department's director for legislative drafting, says only about 20 submissions were received. Although some were quite bulky, they were not always focused on the subject at hand, he notes.

"Some submissions elaborated on issues that are not relevant," Muthwa says, such as the morality of gambling and its status as a "vice".

On the issue of gambling as a vice, the National Gambling Board previously said it is better to regulate than to ban, as regulation allowed the state to set parameters, while prohibition merely drove the activity underground where more social harm would be done.

The DTI called for public comment on interactive gambling late last year, with submissions closing on 12 February.

None of the online casinos, such as Silver Sands and Piggs Peak, provided input. An association representing licensed, real (as opposed to "virtual") casinos did make a submission, as did several companies that may be toying with the idea of entering the market. Among them was MultiChoice, the pay television company.

"These submissions were generally receptive, but want some 'tightening up'," Muthwa says. "They contain a lot of technical comments on definitions and exclusions."

The casinos asked for a level playing field and were especially concerned that virtual casinos not enjoy a tax advantage.

Muthwa says the way forward includes considering all the submissions and engaging some of the parties to clarify issues. The Gambling Amendment Bill would then be amended, submitted to the State Law Advisor for certification and then presented to Parliament. The department also has to consult with the provinces, as land-based gambling is a provincial competency.

The lawmaker, meanwhile, plans to hold a series of public hearings of its own on the social impact of gambling. This follows some concern from legislators on the impact of gambling and the expected effect of e-gambling. This would be the correct forum for concerns about vice and morality.

Related stories:
E-gambling regulation a step closer
Piggs Peak appeals ruling

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