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The 'negative socio-economic effects' associated with gambling are of paramount importance to the new online gambling legislation recently approved by Parliament. Research figures suggest, however, that problem gambling is not a supremely South African problem. Survey statusAccording to a recent study carried out by the National Responsible Gambling Programme (NRGP) the percentage of respondents illustrating signs of problem gambling has actually dropped from 6.8% to 4.8% in the last three years. Reassuring trendsAccording to Dr Roger Meyer, Medical Director of the NRGB, the number of people seeking help for problem gambling has remained stable despite a surge in South African online gambling destinations in recent years. It is his opinion that in South Africa "the pool of problem gamblers is constant irrespective of the availability of gambling services." American worriesThis situation is in stark contrast to the US where the issue of problem gambling amongst teens and young adults is becoming an increasingly worrying phenomenon. According to a study published this month by Buffalo University's Research Institute on Addictions, an estimated 750,000 American youths can be classified as problem gamblers. Situational hazardsThe study, carried out from 2005 - 2007, also found that gambling activity increased along with life changes such as leaving school, starting work, moving out of home and getting married. Furthermore, female gambling rates were virtually non-existence during adolescence but rose to 3% amongst women, as opposed to the male rates that remained constant with age. So the government should take note of the American example and prepare themselves for the populational pitfalls of problem gambling. It may well be the case, however, that South Africa and the US are simply worlds apart.
Legislation set to regulate South Africa's online gambling industry was last month approved by Parliament. The National Gambling Amendment Bill will become law following imminent approval by the President. Problem gamblingThe law intends to deal with the negative factors associated with the gambling industry catering for problem gambling, player protection, licensing, taxation and advertising. The bill states that the internet gambling industry is currently 'plagued by crime'. The government has stated that it is vulnerable to money laundering, terrorism financing and 'compromises the country's reputation as a responsible global citizen'. Safety ProvisionsUnder the bill's proposals, all South African players would need to be registered with a licensed interactive gambling provider and submit an affidavit to prove that they are over 18 years old. The new law also includes provisions for an electronic monitoring system to help root out potentially addictive behavior and restrict credit extensions to players. Big businessIf offline gambling figures are anything to go by, South African online gambling is set to become big business. According to the National gambling Board, the organisation that will be responsible for enforcing the new legislation, offline gambling revenues increased from 6.2 billion to 13.5 billion Rand from 2001 - 2007. Opening the floodgatesScores of online casinos and gaming sites have recently introduced Rand gaming anticipation of the new law and many more providers are set to follow suit. These developments are in stark contrast to the situation in the US where the ban on online gambling has resulted in many gaming sites being hit with heavy fines. So the online gambling industry awaits the next installment in the South African legal drama, as a powerful new force is poised to enter the international gaming world.
Professional Respect While his business rivals were often unhappy with the way Cloud ran his online gambling operations, there was no doubt that he was also held in great respect. Online gambling competitor Brian Bailey said that even though the two didn't see eye to eye in terms of running a business, he recognized him as a family man and sent his condolences to the family. Cloud's Legacy Real Time Gaming, Cloud's flagship operation, tried to obtain a public listing on the London Stock Exchange, but the deal fell through and no public explanation for the failure was ever released. In spite of this and other failed enterprises, Cloud's business properties were valued around 150 million USD at the time of his death. Unhappy Punters Cloud left behind many unhappy patrons who backed his entrepreneurial spirit with their hard earned cash. A number of his initial attempts at establishing an online gambling presence in the South African market fell flat on their face, and punters who placed their bets were never paid their winnings. Another unsavory practice was his practice of locking clients out of his online casinos. These players were subsequently banned from playing on any other Cloud casino website, the reason never being disclosed. Vacuum Cloud's death has left a huge void in the South African online gambling scene, and it's unclear in these early days who will move in to claim his market share. His business will probably continue, but without Cloud at the helm, it's hard to see whether it will succeed without his personality and business flair. Were you a Cloud fan, or were you one of the punters owed money by this South African gambling magnate?
In response to the online gambling legislation floating around in the South African parliament, a flurry of top online casinos are now opening their doors to Rand gambling. From the exotic shores of Amber Coast, to the bubble gum cheeriness of Joyland casino, many of these new entrants are quality sites offering a spectacular array of online gaming options. But what else do they have in common? If we click past the grandiose casino lobbies and dig a little deeper into their software roots we can detect a recurring theme: the vast majority of these shiny new South African sites are powered by the online software giant, Playtech. From classic games like roulette and blackjack to mind-boggling progressive jackpots, Playtech provides the winning formula for a dazzling array of online games. And the Israeli firm is going from strength to strength. The company, listed on the London Stock Exchange, has just announced a 14.4 per cent growth in their first quarter results, equating to almost 20 million pounds in revenues. These figures are bringing Playtech close to becoming one of the world's leading providers of online casino and poker software. Fuelling this success was Playtech's launch of its iPoker network which has started to gain pace with PartyGaming - the current market leader in online gaming. But it hasn't all been plain sailing. The 2006 Unlawful Internet Gaming Enforcement Act passed in the US nearly knocked the wind out of Playtech's sails. The law effectively banned online gambling in the US and resulted in a drop in Playtech's share price by a catastrophic 40%. The software giant soon bounced back though and South African gamers will be glad they did as they now have access to some of the whizziest online casinos on the net.
A bill legalising and regulating online gambling in South Africa has, at last, been signed by the President. The legislation, however, will not be implemented 'until a date chosen by the President.' Player provisions The bill was initially approved by Parliament on May 9 2008 and includes provisions for player protection, underage and problem gamblers. It also includes restrictions on advertising and marketing, stringent licensing and regulatory controls, as well as anti-money laundering precautions. Gambling study The National Gambling Amendment Bill followed an international study of online gambling, carried out by the South African National Gambling Board. The research found that there is a strong need for licensed and regulated online gambling within South Africa. Legal benefits So while the United States government continues to allow illegal online gambling sites to flourish, the rest of the world is slowly coming round to the benefits of a legalised and regulated internet gaming industry.
Reports say that $265,000 was paid by Sun International casino magnate, Sol Kerzner, to former Transkei homeland prime minister, George Matanzima, for exclusive gambling rights in the then Transkei homeland. This resulted in 103 families of the Umgungundlovu community being removed to make way for development of the luxurious Wild Coast Sun near Port Edward. Sun International has raked in huge profits from their modest investment but all around the Wild Coast Sun casino, people live in abject poverty with very few prospects of improving their livelihoods. "Very little or nothing has been done to improve their lot and neither have they gained by turning over their land," said their representative in a public hearing into whether or not the casino license should be renewed. The current license expires in August next year. The attorney for King Sigcau, said his client did not "in general object to the renewal of the license," but wanted the Gambling Board to apply strict conditions to ensure profits were used to make reparations, not only to those unlawfully dispossessed, but also to the broader communities. Representing the land claimants, the attorney said that removing the folk was unlawful. The Gambling Board gave Sigcau and the Umgungundlovu claimants 14 days to make further submissions, after which Sun International will be given 14 days to respond. Wild Coast Sun casino management has warned that as many 500 permanent and 700 casual jobs are at stake should the gambling license not be renewed.
In Wales in the 10th century, the king declared that the punishment for killing a greyhound was the same as that for killing a person - death. In the days of the Egyptians, greyhounds were valued by the pharaohs for their grace, beauty and mild temperament. Now in the 21st century greyhounds are prized for only one thing -speed. Historically, greyhounds are the most revered species of dog. Eliminating greyhound racing and the cruel practices that surround the sport will ensure that these beautiful dogs live out their lives in dignity, just as the ancient Egyptians envisioned. But it will mean eliminating an entire industry. In South Africa, a country where greyhound racing is popular but illegal, the Department of Trade and Industry is about to investigate the possible legalisation of greyhound racing: "we will, of course, include aspects such as animal welfare, social, economic and political issues," the organisation has stated. Racing is illegal in South Africa, Greyhound racing was banned in South Africa years ago because gambling was regarded as immoral by the church. This was strange as other forms of animal racing, i.e. horse racing, pigeon racing and even ostrich racing are all perfectly legal. But now that other forms of gambling have been legalised in South Africa, the greyhound racing issue has re-surfaced. Animal welfare and protection groups support the ban on Greyhound racing. A research team will present workshops to gather public opinion. The University of the Free State Faculty of Law, under the supervision of Prof Elizabeth Snyman-Van Deventer, has been appointed to oversee the process. According to The National Society for the Prevention of Cruelty against Animals (NSPCA), the legalisation of dog racing will result in suffering, unspeakable living conditions and often untimely and brutal death for thousands of greyhounds.
Cape Town's premiere gambling establishment is the Grand West Casino, part of Sun International. In addition to the many games and entertainments offered, GrandWest features slot machines which are linked to progressive jackpots, including the R1 million Dream Machine. Like many casino around the world Grand West advertises on billboards. Now a consumer has lodged a complaint about the wording on a Grand West billboard. The ad depicts a man smoking a cigar and holding playing cards, four kings, on either side of him with the words, "Four King Fantastic " splashed across the billboard. The objector claims that the words are offensive, because an Afrikaans-speaker would read the message as "F***ing Fantastic ". But the Advertising Standards Authority (ASA) has dismissed the complaint against the billboard on the M5 highway in Cape Town. They say that it is possible that people may see the joke in the wording when read in Afrikaans, but the message that holding four kings, or "four of a kind " is quite clear and that's what counts. Moreover, says ASA, there are no vulgar words in the advertisement which is, after all, for a casino where poker is played. The ad is intended to attract people to come and gamble at the casino Lastly, the ad is written in English. Anyone who wants to read it in another language is free to do so. If it comes out ‘funny', well that's just fine.
Rapid Growth In just over ten years, 100,000 new jobs and more than R15 billion have been ploughed into the South African economy. The benefactor: the local casino industry. Such rapid expansion will continue with three new casinos set to open up across the nation. Casino Association of South Africa (CASA) chairman, Mr. Jabu Mabuza stated that new resort developments at Golden Valley, Emperors Palace, Suncoast, Carnival City and Montecasino have bolstered the tourism sector. He announced that in only two years, through corporate social responsibility initiatives, the sector has invested roughly R70 million domestically. The issues Problem gambling, given the widespread poverty in South Africa, is taken care of by the National Responsible Gambling Programme (NRGP). This successful endeavor has seen incidents of problem gambling decline, through intensive educational initiatives. Affirmative action is a hot political potato in South Africa. With millions of impoverished people, transformation is necessary. Ownership and management of the country's tourism and leisure assets is increasing. Black South Africans are reaping the rewards of AA policy. On this note, casinos are helping to develop local communities. With R4 billion in casino tax revenues, the government has poured funding into reconstruction and development. The industry's estimated turnover for 2007 was R14 billion. Casa and regulation 33 of the nation's 34 casinos are represented by Casa. The gambling industry provides more than tax revenue; they provide diverse entertainment to South Africans and foreigners alike. The SA casino industry is highly regulated. Defaulting by casinos may lead to revocation of their gambling licenses. As for online gambling, the National Gambling Amendment Act will provide opportunity for applications for online gambling licenses in the near future. Foreign gambling companies currently target SA as a lucrative market, but the industry is still shy of all-out regulation.
Radio Botswana, in southern Africa, recently ran a phone-in about gambling. Callers by and large were expressing disillusionment with gamblers' total disregard for their essential responsibilities. Gamblers have been accused of squandering hard-earned cash on slot machines and tables when necessities such as food, education, housing and healthcare are being neglected. As in any unrestrained activity, excess is negative. The difficulties are highlighted in Botswana - a prosperous African state, where there are pockets of poverty scattered amongst the small population. Casinos in Africa have a mystique, an allure that many people find too hard to resist. And so the dangers of irresponsible gambling are prevalent and their instances are rife. Tales of the bizarre People have run away from their families for fear of facing them after squandering hard-earned cash; others have committed suicide as their hopes for repairing the damage done seem improbable. Examples abound, but this all points to a commonality: responsible gambling is in desperate need and in short supply. People tell of being banned from casinos, but then being allowed to gamble once again after the bans expire. The problem is in the ease of money loss. What would typically take Botswana person weeks or even months to earn can be lost in a matter of hours or less. These severe losses bring on suicidal thoughts or worse yet, the deed itself. Regulations required Responsible gambling in southern Africa requires a concerted public effort. The government and the casinos need to work with social workers and counselors to inform the public of the real dangers inherent in excessive, unrestrained gambling. Until such time as people are aware of the dangers of property loss, income loss and excessive debt, irresponsible gambling will always be at the forefront of many families' minds.