Gaming industry remains stagnant
Six years after the Gambling Authority was established to monitor and regulate the country’s gaming industry, the sector remains at infancy stage and is yet to issue several licenses.
The developments, spearheaded under the Gambling Authority Acting Chief Executive Officer, Emolemo Peter Kesitilwe comes after the Authority was granted approval to issue national lottery, casino, betting and bingo licenses.
Though Kesitilwe is optimistic the approved licenses will prop up the country’s gaming industry, only nine licensed casinos currently exist across the country, punctuated with illegal betting machines. And the Authority believes that there is still room for casino activity in Gaborone, Maun, Palapye and Kasane. Request for application will be issued out before the end of the financial year, 31st March 2023.
However, to fight the rampant illegal betting machines, Kesitilwe believes government should allow Bingo and Limited Payout Machines ( LPMs) in the urban centres.
“In order to allow for new business and entrepreneurs to enter the market, LPM’s and Bingo licences should create as much diversity as possible,” said Kesitilwe.
The LPM are slot machines that only play low denomination and pay low denomination and largely seen more as entertainment than gambling due to the inherent low betting and low winnings.
Gambling Authority believes that government should allow for licence of LPM’s in cities and towns.
“We suggest the Minister allows the whole country to be designed and to allow the Gambling Authority to receive applications and licence entities in a fair and equitable manner, whilst ensuring that we have regard to the penetration of gambling across the country,” said Kesitilwe.
With the anticipated growth of the country’s gaming industry still in the pipeline, Kesitilwe said new licenses for casino, betting, bingo and LPM has potential to create massive job opportunities with indirect job benefits for supplies, retail sector and SMMEs.
Meanwhile, Kesitilwe believes the local economy is ready for a national lottery, citing that there is a history of private lotteries and raffles that have been supported by the public.
“The participation of people in SMS lotteries is also evidence that a lottery would be supported,” he said.
The Authority believes that a lottery will also contribute immensely to government coffers and corporate social responsibility. Forecast by the Authority indicates a net sales will gradually rise from just above 200 million to over half a billion in ten years.
Prior to April 2016, the gambling industry was regulated under the Casino and Lotteries and Betting Acts.
Under the new Act, Gambling Authority is charged with regulating and controlling the development of gambling establishments, defining areas in which gambling establishments may be established and operated with the approval of the Minister and receiving, considering and deciding on applications for licences, to verify information contained in or submitted therein and to issue, refuse, suspend or revoke licences.
In addition, the authority also receives, considers and decides on applications for the transfer of licences, ensuring that sums of money as may be due by licensees are duly paid and accounted for; and that licensees maintain gambling establishments in respect of which they are licensed to the standards set out in the Act, thereby ensuring safe and fair gambling throughout Botswana.
We suggest the Minister allows the whole country to be designed and to allow the Gambling Authority to receive applications and licence entities in a fair and equitable manner, whilst ensuring that we have regard to the penetration of gambling across the country