GAMING REGULATORS AFRICA FORUM 14th ANNUAL CONFERENCE GABORONE BOTSWANA Sustainable Gaming – Saving the sector from itself Presented by: Master Maliro Malawi Gaming Board

Sustainability Definitions Able to be maintained at a certain level or rate or Able to upheld or defended Source: en.oxforddictionaries.com Able to continue over a period of time or Causing little or no damage to the environment and thereafter able to continue for a long time. Source: dictionary.Cambridge.org

Sustainable Gaming Benefits derived from gaming operations that are maintained or upheld for as long as they are needed. The benefits are in form of: Financial returns Employment Revenue generation Entertainment and Service provision Tourism and or social development

Competing forces in gambling operations There are competitive forces operating in the industry whereby each stakeholder would like to maximise their benefits. These can be categorised into two: Economic – these are financial in nature and can be quantifiable, such as monetary returns, employment etc, Social – the are not easily quantifiable and include such things as public opinion about gambling, welfare concerns and charitable causes.

Main Gambling Stakeholders OPERATORS Concerned with financial returns REGULATORS/ GOVERNMENTS Interested in employment for citizens, revenues, taxes, social economic development and security PLAYERS/GENERAL PUBLIC Interested in entertainment, financial return and Corporate social investment SUPPLIERS AND SERVICE PROVIDERS Interested in Financial returns EMPLOYEES Concerned with job security and fair remuneration

HOW CAN WE SUSTAIN THE INDUSTRY? RESPONSIBILITY Responsibility cuts across all stakeholders. Each one is expected to play their part to ensure that benefits are upheld for future generations. Governments should avoid overtaxing the industry . We know of cases where investors pulled out of the country because business was no longer viable due to high taxes. Governments should be flexible in adapting to change. Technology is moving fast. Innovation should be encouraged. Regulators should avoid issuing too many licences. New licences should be market driven. There is a case where a Regulator is trying to reduce the number of licences in the industry to bring sanity.

Responsibility Regulators should eradicate illegal operations to create fair competitions. Illegal operators do not pay taxes. Investors should operate credible equipment to develop confidence and create repeat players for continued business. Operator and Regulators should maintain a cordial relationship. No cat and mouse games. Revenues should be declared in full. Operators should invest in the community to enhance acceptability and demonstrate that not all is bad about the game. Remember the need to clean the image of gambling. Operators should support local businesses.

Responsibility Casino staff should help players from becoming compulsive gamblers. Players should avoid borrowing to finance gambling. As they say players should know when to stop. It is their own responsibility to protect themselves. Players should understand the mechanisms of the game. Gambling is based on chance. All in all players should treat gambling as entertainment and not a business.

Other long term measures The industry produces enormous benefits to stakeholders, as such prohibition is out of the question. The following may be used to help sustain the benefits: Public education. Gambling issues should be introduced at a young age such that as people grow they are able to make informed choices. Decision making about the industry should be guided by research Encourage policy of localisation of investment for the benefit of the local economy. Cooperation with second level stakeholders such as Revenue Authorities, Police, Immigration, the Central Bank should be encouraged. These stakeholders will assist with issues of taxes, compliance/illegal operations and externalisations of winnings/dividends.

In conclusion There is need to strike a balance between economic and social orientation for gambling to be sustainable in the long run. Each stakeholder should know their responsibilities. There is need to shift from viewing gambling as a vice to viewing it as an opportunity to be exploited. Treat other stakeholders with due respect as this is a win win business. Policy makers and operators have to weigh economic, social and moral considerations in deciding whether and how to legalise and operate different forms of gambling.

Thank you