Western Cape Nineteenth Gambling and Racing Amendment Act Repeal Bill: consideration of public comments & finalisation

Meeting report

The Chairperson welcomed all the attendees and commenced the meeting. Apologies were noted.

Consideration of Public Submissions: Western Cape Nineteenth Gambling and Racing Amendment Act Repeal Bill

Mr A Van Der Westhuizen (DA) proposed that the Bill be supported and recommended to the House by the Committee.

Ms N Nkondlo (ANC) asked the Department to indicate its take on the industry not making any input on the structural changes it was supposed to complete for the repeal. Why was the cost of the litigation not included in the Bill as indicated in the email response from the high court in 2020 and was this litigation viewed as part of the reason why there was supposed to be a repeal in the current Bill? She noted the importance of being transparent with how taxpayer money is used and asked if the industry is interested in the changes the repeal is trying to enable.

Mr I Sileku (DA) welcomed the comments of the National Gambling Board and the processes the Committee undertook asking for public input on the Repeal Bill. He noted that the process was straightforward and clear and he is in favour of the comments.

The Chairperson asked what engagements took place with the industry before the discussions with the Committee and noted that the limited input, despite the mass amounts of advertising and reaching out to the public, points to consensus in the industry.

Mr Malcom Booysen, Senior Manager: Fiscal Policy, Provincial Treasury, said that the Provincial Treasury sent the draft of the Repeal Bill to the industry requesting comments by 13 January and received comments that were not objecting to the Bill. He added that the bookmakers were the third biggest contributors to gambling taxes and they have surpassed both the casino and the Limited Payout Machines (LPM) sub-sectors since Covid-19. The annual report of the gambling board indicates that there is an increase in the number of bookmakers compared to the previous years.

Ms Shirley Robinson, Chief Director: Public Policy Service, Provincial Treasury, said that the National Gambling Board (NGB) stated that it welcomes the comprehensive policy review of the gambling and racing environment in the Western Cape with a renewed assessment of the economic aspects of this environment. This was required due to the structural change that happened during the COVID period and the provincial treasury has undertaken robust economic assessments, and legal and tax legal opinion with a view to unravel the legislation from the Green Paper to a White Paper process. The breakdown of the costs was sent to the Committee on page two of the response sent. The extension notice for comments costs R22 182.30, publishing the Draft Bill for public comment costed R3 807.18 and the officials employed in the Department of the Premier and Provincial Treasury assisted with processing these costs.

Ms Assuf Miller, Office of the Premier, said that the litigation costs were not clearly requested to be a part of the report and the industry was aware of the proceedings, following the request for comment in December 2022. The Act was the subject of litigation and the Department considered all relevant matters as per the memorandum of objects, considering the litigation. 

Follow Up Comments

Ms Nkondlo said that it was interesting that the litigation is said to be relevant to the repeal, whereas in previous meetings, it was said that the repeal is not as result of the litigation. She noted that this issue cannot be swept under the carpet because it could cause legal action from the industry. She noted that in as much as the end goal is important, the process of getting to it is equally important and it should be according to the regulations, with integrity. She declared that she and the ANC reserve their right through section 90 to not place their opinion in the meeting and will raise it in the House.

Mr Van der Westhuizen said that the matter at hand is about whether the Committee supports the Repeal Bill or not, and that he has not heard anyone oppose the support they should give toward it, even from Ms Nkondlo. Others matters are not part of the agenda.

Mr Van der Westhuizen moved to adopt the Bill and Mr  Sileku seconded the motion. They both were in favour of the motion of desirability.

Formal Consideration: : Western Cape Nineteenth Gambling and Racing Amendment Act Repeal Bill

Clause 1: Supported by the Committee

Clause 2: Supported by the Committee

The Entire Bill: Supported by the Committee

The Chairperson said that after consulting with the Procedural Officers, they have indicated that the abstinence of a party or Member from voting will not be considered as a view on the matter at hand.

Consideration and adoption of the Draft Committee Report on the Western Cape Nineteenth Gambling and Racing Amendment Act Repeal Bill

The draft Committee Report was then considered and adopted.

The Chairperson then thanked all the Members, officials and attendees for their attendance and participation in the meeting.

Meeting was adjourned.