The UK government is mulling a review of the regulations on fixed odds betting terminals commonly found in pubs and betting shops, in order to reduce the risk of problem gambling developing.

1. How Gambling Benefits The Economy
2. Gambling And Economy
3. How Does The Economy Work In America
4. How The Economy Affects Business
5. Gambling Effects On Economy
6. How Does Affect Us

Based on a report from the UK Department for Digital, Culture, Media and Sport, this would see the maximum stake gamblers can bet on the machines reduced from £300 a minute to between £2 and £50.

Legalized gambling increases employment opportunities and, proponents argue, gives schools much-needed funds. But it also dramatically increases crime, bankruptcies, and addiction.

Given that the Gambling Commission, the industry regulator, found 43% of people who use the machines are either problem or at-risk gamblers, some such as opposition Labour MP Tom Watson, have described this as “a squandered opportunity”. Critics believe the proposals don’t go far enough to protect people from fixed odds betting terminals, sometimes described as “the crack cocaine of gambling” due to their addictive nature.

Harmful gambling can have crippling financial and social effects on the gambler, their friends and family. In the first national study of the social impact of harmful gambling in Ireland, we examined how it affected recovering gamblers, their families and friends. We also heard stories from counsellors and those who provide services to help gamblers. Talking to people from all walks of life, from different age groups and different economic backgrounds, we found that a common theme was the devastating social effects gambling had on people’s lives.

In particular, we learned that gamblers were often exposed to gambling at an early age, for example by collecting betting proceeds for a family member, or watching adults place bets. This then led them to participate in gambling before the legal age of 18.

Gamblers reported gambling in secret, isolating themselves from family and friends to feed their addiction. As relationships deteriorated, the gambler’s behaviour would only be discovered when they were no longer able to maintain a double life, such as failing to intercept unpaid bills that had been part of trying to maintain a facade of normality. The availability of technologies, such as smartphones, means that it’s possible to conceal a secret gambling habit for years, before financial and emotional crises reach breaking point.

For young people, such technology exacerbates the potential harm of gambling. The participants in our studies frequently spoke of their concern for young people and their risk of addiction due to the availability of gambling apps and websites easily accessible from their smartphones. And while there is supposedly agreement not to offer fixed odds betting terminals in Ireland, some gamblers reported that they had got themselves into trouble using them.

Gambling as a public health issue

The social harms that stem from addictive gambling are not only for the gambler. For example, the wives of gamblers in our study reported how they could sense there was a problem, but believed they were struggling with marital issues, rather than the fallout from gambling addiction. Parents and children of gamblers reported that they could no longer trust the gambler, that they could no longer leave money unattended, and that the gambler had become someone they did not recognise or understand.

In Ireland, the legislation around regulating gambling is outdated. The regulations that might mitigate harms for the individual and for society have not been introduced, and – with support from the Irish Research Council and Ireland’s Department of Social Protection and Department of Justice and Equality – our research sought to provide the evidence base to help draw up the necessary social policies.

The government indicated its intention to move forward with legislation in early 2017, and my research and its follow-up study should inform politicians how to address the social harms of gambling – the costs of which the Institute of Public Health in Ireland has estimated to be greater than government revenue from gambling taxes.

How Gambling Benefits The Economy

Listen to what gamblers say they need

The participants interviewed said there is a need for open discussion about gambling and the risk it can pose to individuals and their families. Gambling addiction carries with it significant social stigma, shame and isolation – talking openly about its effects can change how we approach this issue.

Interviewees suggested a variety of measures government could take, including regulations that would protect the most vulnerable to gambling addiction, and particularly in regulating how technology now enables secretive gambling. They also identified the need for support that would help prevent and address the harmful effects of gambling addiction.

While there are addiction treatment centres around the country which include services to address harmful gambling, there is little help for those affected by a partner’s or family member’s gambling. The RISE Foundation is a notable exception, providing treatment for the families of those affected by a variety of addictions. But it is based in Dublin only, and family members may no longer have the financial resources to access treatment and support there.

There is an urgent need for a unified, transparent approach to tackling gambling’s harms in Ireland – a national strategy that encompasses public and private sector organisations, similar to those that target alcohol and drug addiction. The UK has the Gambling Commission and NHS support and advice; Ireland has nothing comparable.

Despite the lack of progress from government on the issue there have been benefits to this research: uncovering the extent of gambling’s social harms has helped to get people talking about gambling. For example, in September 2017 the European United Left/Nordic Green Left European Parliamentary Group sponsored a one day conference in Dublin to direct the spotlight on the subject and emphasise the need for updated legislation.

Within the Republic, Problem Gambling Ireland recently opened its doors to lobby against the spread of harmful gambling and to provide referral services to those affected by gambling. These may seem like small steps, but it is small steps that lead the charge for change.

Gambling in South Africa has been heavily restricted since 1673, with South Africa's Gambling Act of 1965 officially banning all forms of gambling except betting on horse racing which existed as a sporting activity.

In the late 1970s casinos started operating in the bantustans (the nominally independent areas called homelands) of Bophuthatswana, Ciskei, Transkei and Venda. Only native South Africans lived there and most citizens couldn't access those gaming establishments. By 1995 an estimated 2000 illegal casinos were believed to be operating within the country. In 1994, when the new democratic government came to power, all forms of gambling were legalised. In 1996 the National Gambling Act instituted a system of licensed casinos and a single national lottery. Horse racing was also proclaimed gambling activity.^[1]

The National Gambling Act of 1996 made provisions for the regulation of gambling activities and promotion of uniform norms and standards in relation to gambling throughout the country. It gave definitions to different gambling notions, described how the 40 gambling licenses should be distributed among the provinces and provided information on liability. It also established the National Gambling Board, an organisation responsible for the supervision and regulation of the gambling industry. This change in legislation saw the establishment of legal casinos, a national lottery and other forms of gaming.^[2]

In 2004, another National Gambling Act repealed the Act of 1996. And in 2008 The National Gambling Amendment Act was introduced.

• 2Types of gambling
• 3Online gambling

Gambling And Economy

Prevalence and value[edit]

According to the 2006 study the most popular forms of gambling in South Africa were the National Lottery (96.9% participation), slot machines (27.7% participation), scratchcards (22.7% participation), charity jackpot competitions (11.6% participation) and horse racing betting (11.5% participation). 8.3% of respondents said they have never gambled and a further 5.5% characterised themselves as occasional game players with no regular forms of gambling.^[3]

In the 2006/2007 financial year licensed gross gambling revenue as monitored by the National Gambling Board totalled R13.52 billion, from R11.4 billion the previous year. 86.2 percent of that revenue was derived in casinos.^[4] In the same period the Board reported a total of 455 raids on and closures of presumed illegal gambling operations.^[5]

South Africa’s gambling revenues are projected to rise to R30 billion in 2019, according to a new report. The South African gambling industry – including casinos, sports betting, the National Lottery, limited payout machines and bingo – achieved gross gambling revenue of R26.3bn in 2016.

How Does The Economy Work In America

Types of gambling[edit]

South African National Lottery[edit]

The South African National Lottery was established in 2000 and has been in continuous operation since, apart from a suspension between April 2007 and October 2007. In its last year of operation transaction values totalled R3.972 billion, with an average of five million transactions per week, making it the most popular form of gambling in South Africa. South Africa known as one of the largest countries participate in UK49s lottery draw operated by Ladbrokes Coral.

Gambling revenue from the National Lottery is projected to increase to R2.33 billion in 2019.^[6]

Casinos[edit]

Casinos operate in all metropolitan areas in South Africa. With the largest being the Rio Casino Resort, which is also the largest casino in Africa and the fifth-largest casino in the world.^{[citation needed]} Tsogo Sun Montecasino, also located in Johannesburg, is another of South Africa's largest casinos.

Horse racing[edit]

On-track betting on horse races was the only legal form of gambling in South African until 1996. Due to its complexity and the difficulty of attracting new players it did not effectively compete with the newly introduced National Lottery and casino games.^[7]

Betting on horse races is controlled by Saftote and operated by Gold Circle in KwaZulu-Natal and the Western Cape and by Phumelela in the remainder of the country.^[8]

Online gambling[edit]

Licensed gambling sites[edit]

Each of South Africa's nine provinces has a gambling and racing board. To offer online betting bookies must be licensed by one of these boards. Currently the Western Cape Gambling and Racing Board (WCGRB) is largest provider of online bookmaker licenses.^[9] South Africa residents can use these online betting sites legally. For bets involving horse racing 6% is deducted from winning to cover VAT. As of May 2012, no additional tax is charged to recreational bettors, and recreational gambling winnings are not considered income for income tax purposes.^[10]

Online gaming laws[edit]

The National Gambling Act 2004 prohibited both offering interactive gambling services and engaging in interactive games (games on the Internet).^[11] This rule applies to all online operators, licensed in any jurisdiction. It's however important to note interactive gambling relates specifically to games such as casino, poker and bingo. Online sports betting, online horse race betting and the business of bookmaking is lawful in South Africa, provided that the person conducting such business holds the necessary provincial bookmaker's licence(s), or is using a website with proper licence(s).

The National Gambling Amendment Act of 2008 that was published in July 2008 was meant to be an attempt to legalise interactive gambling in the country and make provisions for the regulation of this market. The Amendment Act was actively confronted by the interested parties (land-based gambling houses and anti-money laundering authorities). For this reason, the Act hasn't come into power yet.

How The Economy Affects Business

On 20 August 2010 even online gambling offered through servers located outside the country was banned in South Africa. This was the result of the North Gauteng High Court judgement on the jurisdiction of online gambling transactions in the country. Consequently, both offering gambling services online and gambling online became illegal. The only exceptions are province licensed horse racing and online sports betting. Casino sites, individuals, internet service providers and banks that process payments for online gamblers are subject to a fine of R 10 million or 10 years of imprisonment, or both. Mass media channels that transmit or facilitate advertisement of online gambling services (TV and radio, newspapers and magazines, outdoor advertising agencies) are also to be held liable.^[12]

The South African Department of Trade and Industry also suggested to consider penny auctions a type of online gambling and illegalise them. The National Gambling Amendment Act of 2008 may come into force after an appeal to a high court ruling against 'interactive gambling' is heard.^[13]

Gambling Effects On Economy

References[edit]

How Does Affect Us

1. ^Stephen P. Rule; Terezinha Da Silva; Chris Sibanyoni (2000). The Social Impact of Gambling in South Africa. HSRC Press. p. 8. ISBN0-7969-1971-2.
2. ^National Gambling Act, 1996 [No. 33 of 1996] – G 17307
3. ^'Problem Gambling Prevalence Study 2006'(PDF). National Responsible Gambling Programme. Archived from the original(PDF) on 9 October 2006. Retrieved 22 September 2008.
4. ^'National gambling statistics for the financial year ending 31 March 2007'. National Gambling Board. Archived from the original on 7 October 2008. Retrieved 22 September 2008.
5. ^'Illegal Gambling statistics for the financial year ending 31 March 2006'. National Gambling Board. Archived from the original on 6 August 2007. Retrieved 22 September 2008.
6. ^'How much is the South African gambling market worth?'. www.bettinggods.com. Retrieved 6 January 2018.
7. ^'Speech by Thibedi Majake (CEO of the National Gambling Board) at the 2006 national convention of Racing South Africa'. Racing South Africa. Retrieved 22 September 2008.^{[dead link]}
8. ^'Sport: Horse racing in South Africa'. SouthAfrica.info. Archived from the original on 16 September 2008. Retrieved 22 September 2008.
9. ^WCGRB Licensed Betting Sites
10. ^Legal South Africa Betting Sites
11. ^'Online Gambling Remains Unlawful in South Africa'. Archived from the original on 26 April 2012. Retrieved 2 December 2011.
12. ^Online Gambling Banned in Africa
13. ^Online Gambling in SA: Is It Legal?

External links[edit]