‘Illegal gambling a thorn in the flesh of Lim’s economy’
Illegal gambling is a thorn in the flesh in the economy of the province.
This was the sentiment of the
MEC for Economic Development, Tourism and Environmental
Affairs, Rodgers Monama during a media briefing last week, that preceded the destruction of illegal gambling machines which were confiscated during law enforcement raids conducted by the Limpopo Gambling Board in collaboration with the police over the past five months.
The raids resulted in the confiscation of 71 machines in Capricorn, 95 in Sekhukhune, 82 in Mopani, 49 in Waterberg and 29 in Vhembe.
Four persons were arrested in Capricorn, two in Waterberg and 18 in Mopani.
In the period 2023/24, a total of
771 machines were confiscated which is a drastic increase from the 477 confiscated the previous year.
All the confiscated machines within the recent raid were found within spaza shops operated by foreign nationals and these illegal gambling machines are distributed throughout the province by unknown suppliers.
Mokgase Gregory Makoko, the CEO of the Limpopo Gambling Board, remarked that their core mandate is to regulate gambling in the province by making sure that everyone running a gambling business has a licence to do so.
“We also have a mandate to combat illegal gambling together with law enforcement and various stakeholders.
“One of our roles is to ensure that our gambling licences contribute to the provincial fiscus and socioeconomic development. Illegal gambling does not contribute in terms of tax revenue and levies. We are losing a lot of money as a province and as a country,” he said.
Monama shared that R9m is set aside annually to combat illegal gambling, and that the scourge deprives the province of economic benefits.
It is difficult to calculate how much the province is losing in terms of revenue, as it’s difficult to know what the illegal operators generate from their operations. “Unfortunately, we can’t quantify the amount but it’s millions of rands. The number of illegal gambling sites are far more than the licensed ones. You can imagine the magnitude of the problem and it needs a collective effort in terms of dealing with the problem,” the MEC said.
“We are also working together with the Financial Intelligence Centre (FIC) because as much as we appreciate technology, it has debilitating effects in terms of people involving themselves in those types of activities.
“It’s hard to detect cyber-crime and we are trying to perfect the system,” he remarked about illegal online gambling.
A challenge that comes with the arrests of suspects in connection with illegal gambling is the R500 fine, which is a mere slap on the wrist as many of the offenders can easily afford this.
Monama added that there’s a need for engagement with the courts and the NPA for harsher consequences.
There are also programmes in place targeted at consumer education, to create awareness about illegal gambling.