In order to improve the functioning of the NGPC, regulations must be made to enable the NGPC to carry out its functions based on co-operative governance principles.
During the public hearings on the report of the Gambling Review Commission, it came out that gambling machines, software and equipment were being imported, notwithstanding the existing capacity for local manufacture. In line with the objectives of the Industrial Policy Action Plan 2, Ipap2, and government's priority of creating jobs, local manufacturing of these gaming tools must be encouraged and supported. This must also assist in combating the importation of illegal gambling machines and equipment.
Of great concern, though, is that the testing laboratories for the gambling machines, software and equipment are owned by private foreign companies and the SA Bureau of Standards is not involved in testing and verifying the gambling equipment. It is recommended that the capacity of the SABS to verify the test reports done by such testing laboratories be reinstated.
Online gambling is a relatively new and illegal form of gambling in South Africa, yet it is taking place. It is done through the Internet, mobile phones and the telephone. Online gamblers who have been surveyed internationally report that the advantages of gambling online are gambling at home, 24-hour availability and convenience, privacy and anonymity. Therein lie the dangers of unregulated on-line gambling. The challenges that result from online gambling are that it attracts under-age gambling, it is easier to spend more money and it is more addictive. Online gambling is also a health hazard as it is reported to cause disrupted sleep and disrupted eating patterns. Of even bigger concern is that online gambling is associated with criminal activities, such as money laundering and the financing of terrorist activities.
If online gambling is left illegal, we shall never know the extent to which it is taking place in our country in terms of scale, nor what the local and international market is. We will also not be able to detect illicit activities under the cover of online gambling.
The Portfolio Committee on Trade and Industry proposes that the legalisation of online gambling be a national government competence and provinces receive a share of revenue on a formula basis determined by National Treasury; that the gambling activities that are allowed online be restricted and specified; that a limited number of licences be issued by the NGB; and that the licensees be registered and compelled to establish physical offices and be prepared to have information regarding their activities readily available for scrutiny by the relevant authorities.
We must increase and sharpen our skills in cyberpolicing and in prosecuting cybercrimes. We submit that while the principal legislation on lotteries and gambling in general must be amended to address the identified challenges, a new and standalone piece of legislation is proposed for online gambling. [Applause.]