1. REGULATING THE NATIONAL LOTTERY Mrs. TCC Mampane Commissioner: NLC 25 November 2015

2. Outline 1. Regulatory Principles 2.Role of the Board 3.The Lottery Model 4. How the National Lottery is Regulated 5. Protecting the Monopoly of the National Lottery

3. 5 Principles of Good Regulation o UK National Lotteries Commission [2009] “The 5 Principles of Good Regulation”: o Proportionality - Only intervene when necessary o Accountability - Public scrutiny o Consistency - Rules and standards + fair implementation o Transparency - Open, simple and user-friendly regulation o Targeting - Focused on the problem, with little side effects

4. Role of the Board Lotteries Act No. 57 of 1997, as amended 1. Ensure that the National Lottery and Sports pool are conducted with all due propriety 2.Protect the interests of every Lottery Participant 3.Maximum revenue generation for good causes while striving for long-term financial success of the Operator

5. Lottery Models Private Operator with a Licence Agreement Government Lottery with Management Contract Government Lotteries Private Lottery

6. How the National Lottery is Regulated  The National Lottery is the only source of funding for NLC operations  Protect the monopoly of the National Lottery  Striking a balance between revenue maximization for good causes and preventing excessive play  Distribute an average of R1.5 Billion p.a. with a demand for funds of over R40 Billion

7. Protecting the Monopoly of the National Lottery  National Lottery AND Sports pool Licences issued to one entity in South Africa  Lottery Operator needs:  A flexible relationship with the Regulator with clearly defined roles  A high degree of control to introduce new games, new channels and proven industry practices  Protection against competitors

8. Protecting the Monopoly of the National Lottery  Illegal lotteries – Regulate or Enforce  Unlawful competitions  Criminal prosecution Lack of integrity of the National Lottery will influence lottery players’ attitude

9. In Conclusion … The Lottery Operator and Regulator must collaborate in their response to the country’s lottery needs A partnership approach is absolutely essential to ensure proper lottery functionality and true protection of the mandated monopoly

10. THANK YOU