National Gambling Bill: NCOP amendments; National Lotteries Board Chairperson; appointment; Annual Committee Report

Meeting report

TRADE AND INDUSTRY PORTFOLIO COMMITTEE
26 November 2003
NATIONAL GAMBLING BILL: NCOP AMENDMENTS; APPOINTMENT OF NATIONAL LOTTERIES BOARD CHAIRPERSON: INTERVIEWS AND FINALISATION; COMMITTEE ANNUAL REPORT

Chairperson:

Dr R Davies

Documents handed out:
Select Committee Amendments to National Gambling Bill:

B48C-2003
B48D-2003
[email protected])
Lotteries Act [No. 57 of 1997]
Lotteries Amendment Act [No. 10 of 2000]

SUMMARY
The meeting was convened to interview potential candidates for the position of Chairperson of the National Lotteries Board. The Committee decided to reappoint Mr Foster as Chairperson. It was decided that the Committee would recommend that Mr Negota fill the vacancy on the National Lotteries Board.

The Committee agreed to the adoption of its Annual Report without amendments.

The Committee were briefed on NCOP amendments to the National Gambling Bill.

MINUTES
Recommendation for Chairperson of National Lotteries Board
Dr Davies noted that according to the Lotteries Act, the Chairperson of the Board has to be a person who has applicable knowledge and the Chairman has to be appointed after the candidates for the position have been considered by the NCOP and the National Assembly.

Ms Astrid Ludin (DTI Deputy Director-General: Consumer & Corporate Regulation Division) explained that the call for applications for the position had been placed in the Sunday Times, the Sowetan and the Government Gazette. Short-listing was not necessary as there were only three applicants. The Department had therefore forwarded the three names to the Committee to be interviewed.

The three candidates were asked to withdraw from the room.

Mr Lockey (ANC) asked if the Chairperson or the entire Board was being replaced.

Ms Ludin explained that the Chairperson and the Board were both being replaced but the Board members will be recommended for reappointment following a distinct process from the appointment of the Chairperson. She noted that the Department views the position of the Chairperson as a full-time executive position.

Dr Davies asked if there were any particular desirable qualities for the position.

Ms Ludin replied that the Lotteries Act is fairly broad and the role of the Chairperson is to advise the Minister and to administer funds.

Interview of Mr Foster
Dr Davies welcomed Mr Foster and asked him how he sees the role of Chairperson, what his vision for the Board is and what qualities he feels are necessary to be Chairperson.

Mr Foster said that it is necessary that the Chairperson be honest and a person of integrity. His reputation as a trade unionist and his present tenure as the Chairperson of the Board bear testimony to his honesty and integrity.

Mr Lockey asked whether the Board supported the proposal of the introduction of a daily lottery.

Mr Foster said the Board did support the proposal as a means whereby the Board could raise the necessary funds to reach its target. Unfortunately, public opinion did not support the proposal as it was perceived to promote excessive gambling.

Mr Lockey mentioned that according to a study, 27,2 percent of unemployed people participate in the lottery which he said they cannot afford to do. Mr Lockey asked for Mr Foster's response as to the way in which the lottery is advertised as the advertising is often in poor taste and it creates a false perception that the way to riches is by gambling.

Mr Foster replied that the Board agrees the advertising is unacceptable and it has been in year-long negotiations to have the advertising company come up with fresh proposals. Mr Foster said that as the company has not been able to come up with a fresh approach, three companies are making presentations for the account next week.

Ms Moloi (ANC) asked which areas Mr Foster had identified as weaknesses in the current functioning of the Board.

Mr Foster said there are problems with the legislation. He provided the example that a natural person is precluded from applying for funding from the lottery. Only a lawfully constituted juristic person that is able to produce annual financial statements may receive funding. The legislation should be amended to allow a deserving natural person to claim funding. Also there have been problems in the administration of distributing agencies. He provided the example of a distribution agency which was unable to obtain a quorum at its meeting thereby preventing it from conducting its business.

Ms September (ANC) expressed her relief that the advertising campaign would be changed and asked Mr Foster to provide a motivating factor for his reappointment.

Mr Foster said that the work that has been done thus far by the Board has been without fault. He said the Committee should rather be asking what the Board has done not to deserve reappointment.

Prof Turok (ANC) said that many people have been unsatisfied with regard to the allocation of funds and the process whereby persons apply for funds. He asked what more could be done to educate people about the application process.

Additionally, Prof Turok (ANC) said he felt he should mention to Mr Foster that if he is re-elected, the Committee would be paying close attention to the way in which the Board monitors the impact of gambling on communities.

Mr Foster clarified that the Board is responsible for the policy direction. It is the role of the Minister to direct policy. The Board is primarily involved with the safeguarding of the funds after the approval of the necessary documentation.

Mr Foster mentioned that the recent appointment of a media liaison officer would serve to address any complaints as to the allocation of funds and she would assist in educating the public on how to access funds. Despite the appointment, Mr Foster said the Board remains restricted by the legislation when determining who can access funds.

Mr Lockey said that surely Mr Foster should realise that Parliament would be sympathetic to any proposed changes to the legislation if he initiated them.

Dr Davies pointed out that an amendment Bill had been proposed in 2000 and that the Committee should give Mr Foster the opportunity to mention his role in this amendment Bill.

Mr Foster replied that the Board had proposed the amendment Bill two years ago and that it was up to the Department to see that the amendments were effected. He said that perhaps the Department should respond to Mr Lockey's statement.

Interview of Mr Negota
Dr Davies asked Mr Negota what qualities made him suitable for the role as Chairperson, what is view of the role of Chairperson and the vision he has for the Board.

Mr Negota replied that it is the role of the Board to advise the Minister and to pursue policy to ensure it is on the right course. It is also important for the Board to educate communities as to the boundaries of morality. His strength lies in his experience. He said he envisions promoting the lottery overseas but that any vision would not be realistic until he has the opportunity to experience the office of the Chairperson.

Ms Ntuli (ANC) asked how Mr Negota proposes reaching small, rural organisations that do not qualify for funding.

Mr Negota proposed the appointment of community organisers who could go out and identify these organisations and who could suggest ways in which they could access funds.

Dr Davies asked whether Mr Negota viewed the position as a full time position and if so, how quickly Mr Negota could give up his current position.

In reply to Mr Negota asking if it is currently a full time position, Dr Davies replied that it is.

Mr Negota said he perceives the role to be advisory and as such he could allocate two or three days per week to the office. In his experience if a chairperson works for more than three days per week his role clashes with the role of the director.

Ms Hajaig (ANC) said that there is excessive gambling especially amongst indigents yet it is these indigent communities who struggle to access its funds. She therefore asked Mr Negota how he would remedy this situation.

Mr Negota said he would like to see lottery funding going towards combating these social ills. The Board needs to come up with guidelines and the manner in which these guidelines can be implemented to address excessive gambling. Further, the Board needs to promote education and awareness and he foresaw the involvement of social workers in this scheme.

Prof Turok (ANC) asked Mr Negota which quality, given his impressive list of qualities, accurately typifies that which he has to offer the position. Further, did he foresee any potential conflict of interests given his current business involvements.

Mr Negota said that he had resigned from Group Five because of a potential conflict of interests. His other positions have come to an end and his academic pursuits are merely for interest's sake therefore he did not see the threat of a potential conflict of interests.

Ms Moloi asked Mr Negota why he is passionate about the Board.

Mr Negota replied that he likes to solve problems and he would like to bring communities closer to the funds.

Mr Lockey said that the problem with the lottery is that it is a tax on the poor and that there is clearly a problem with the way in which the lottery is marketed. He asked what he would do to market the lottery more responsibly and how he would go about simplifying the requirements for accessing funds.

Mr Negota said he would firstly examine whether the structure could be provincialised as he said decentralisation is the way to reach communities. He would also instigate an informal fact-finding process and he would attempt to enlist the assistance of community-based churches.

Interview of Dr Singh
Dr Davies asked what qualities he could bring to the position, how he perceived the role of the Chairperson and what his vision is for the Board.

Dr Singh said he perceives the Board as the provider of the system's checks and balances. The Board must meet its social obligations and it should be accountable and transparent. He possessed the necessary integrity and impartiality and that, despite his career as a medical doctor, he is also involved in business. It was necessary for the Board to meet its social obligations in the future.

Ms Hajaig asked whether Dr Singh intended resigning from his position as a medical practitioner and how he intended combating the social ills associated to gambling.

Dr Singh replied his contract with the KwaZulu Natal government expired at the end of the year and therefore he said he would be available for appointment from then onwards.

Dr Singh said that the social ills associated with gambling could be addressed through the proper structures. He proposed therapy, support groups and the establishment of committees.

Deliberation of candidates
The Committee did not support the appointment of Dr Singh.

Dr Davies said the Committee should bear it in mind that the position as Chairperson is a full time position and that Mr Negota did not perceive the position as being full time.

Mr Lockey proposed supporting Mr Foster as Chairperson while recommending to the Minister that Mr Negota be appointed as a member of the Board.

Ms Ludin said there is scope for this appointment as there is one Board member not available for reappointment. The legislation requires the appointment of a person with a legal background and Mr Negota is such a person.

Ms Hajaig supported Mr Lockey's suggestion.

Dr Davies therefore proposed recommending that Mr Foster be appointed as Chairperson and that he would write a letter to the Minister recommending the appointment of Mr Negota to the Board. The Committee agreed.

Annual Report of the Committee
The Committee agreed to adopt the Report.

NCOP's amendments to the National Gambling Bill
The Chair noted that the Bill is a Section 76 Bill and as such the options to amend it at this stage are limited.

Dr Davies called upon Ms Ludin to present the proposed amendments to the Committee.

Ms Ludin said a number of the amendments had been proposed by the Department in response to the recommendations from the industry while the other amendments have been proposed by the Department and the Provinces.

Clause 1
Ms Ludin said the amendments to the definitions of 'family member' and 'spouse' were consequential. "Spouse or partner" had been redefined as partner was interpreted to mean a business partner and not a same-sex life partner as was intended. Retaining the present definition would result in the exclusion of a person from the Board if his or her marital partner had an interest in a license while a person with a same-sex life partner who had an interest in a license would not be excluded from appointment to the Board and this would result in discrimination on the basis of marital status.

Ms Ludin said the change of definition to 'interactive game' was to remove from the definition the inclusion of games linked via the internet that can be accessed only in licensed premises as these games should remain under the control of the licensed operators.

Ms Ludin said the change to the definition of 'this Act' was to take account of the fact that there is only one schedule.

The Committee indicated that they were satisfied with this clause.

Clause 5
Ms Ludin said the amendment to Clause 5 was of a technical nature to rectify the circular reasoning present in its wording.

The Committee indicated that they were satisfied with this clause.

Clause 9
Ms Ludin said as per the suggestion from the Committee, the words "store and transport" were included in this Clause but the inclusion of these words created a difficulty in Clause 23(4) where the regulation of transport is specifically excluded. She said the amendment inserted the words "except to the extent contemplated in Clause 23(4)" to remove the conflict.

Mr Lockey asked if this Bill would override Provincial Legislation.

Ms Ludin said this Bill would add to Provincial legislation and that any conflict between the legislation would be dealt with in terms of the Constitution.

In point 2, Ms Ludin said the exemption was included so as not to propose unnecessarily onerous conditions on what needs to be licensed.

Dr Davies pointed out that a loophole now exists under this formulation. He would have preferred the Minister to be empowered to make regulations only pertaining to ancillary gambling articles such as roulette balls for example - as this was the spirit in which the objection to Clause 9 was raised. It was never the intention to empower the Minister to make regulations as to gambling devices and machines.

Dr Davies said that he felt it was to close this loophole.

Dr Davies asked the Members if they are satisfied with the amendment. The Committee indicated that they were.

Clause 13
Ms Ludin said the prior position of "contrary to this Act" would make the extension of credit for gambling contrary to this Act unlawful. The intention was rather to make the extension of credit contrary to this Act unlawful and so the position of this phrase had to be changed.

The Committee indicated that they were satisfied with this clause.

Clause 14
Ms Ludin said Clause 14 was changed in response to comments received from the Provincial Licensing Authorities to reconstitute the clause into three subclauses. The time limitation restricting the withdrawal of one's self-exclusion from participating in gambling activities could prove to be unconstitutional. This is as there is no limit when including oneself on the list of excluded persons and there should not therefore be a limit on withdrawing oneself from the list.

Ms Hajaig (ANC) asked whether a person is then empowered to include oneself in the morning and then exclude oneself in the evening.

Ms Ludin said that technically this is now possible but Clause 14(3) said that the notice of exclusion only takes effect after twelve to twenty four hours and therefore the person wanting to be included would have this "cool-off" period.

Ms Ludin said in Clause 14(11)(b) the amendment was effected so as not to limit a casino's civil liability where an excluded person is allowed onto the floor.

The Committee indicated that they were satisfied with this clause.

Clause 15
Ms Ludin said the original clause had limited the right of a lawyer, for example, to promote legitimate gambling activity and that this could be unconstitutional, therefore the clause had been reorganised.

The Committee indicated that they were satisfied with this clause.

Clause 17
Ms Ludin said the Members of the Select Committee had felt that this clause should include a restriction as to where an Automatic Teller Machine could be located in a gambling facility. The clause was amended to incorporate this restriction.

The Committee indicated that they were satisfied with this clause.

Clauses 21, 22, 23, 25, 26
Ms Ludin said the amendments to these clauses were of a technical nature and that there is no substantive change to their meaning.

Mr Lockey asked if the amendment to Clause 26 (2)(d)(iii) now allowed there to be different maximum numbers of machines at different sites and whether these could exceed the maximum number of five machines per site proposed by the Committee.

Ms Ludin said the maximum could not exceed five machines per site. The effect of this amendment is merely to allow regulations to be made so that different sites could have different numbers of machines provided they do not in excess of five.

The Committee indicated that they were satisfied with this clause.

Clause 35
Ms Ludin said the inclusion of the word "prescribed" served to limit the information requirement in the application for licences.

Clause 50
Ms Ludin said this was an issue the Provincial licensing authorities felt strongly about. They felt the inclusion of "brother and sister" in the definition of family member created too wide a classification of persons disqualified from holding a licence as it is defined in the Bill. It was not possible to amend the definition of family member in the definitions of the Bill as it was only in this clause that family member is to be interpreted in this way.

Initially the Bill held that a person disqualified from participating in gambling activities should only be allowed to hold a five percent interest in a gambling licence. The provinces felt this was inappropriate and that a disqualified person should not be allowed to hold any interest in a gambling licence. This amendment gave effect to their suggestion.

The Committee were satisfied with Clauses 35 and 50.

Clause 53
Ms Ludin said the effect of this amendment is to enable the Provincial licensing authorities to also consider factors other than black economic empowerment and the socio-economic impact of awarding a licence when awarding a licence.

Clause 59
Ms Ludin said the changes to Clause 59 were consequential.

Clause 65
Ms Ludin said Clause 65 was changed to ensure there is consistent language usage throughout the Bill.

The Committee were satisfied with Clauses 53, 59 and 65.

Clause 67
Ms Ludin said the Select Committee made the point that a self-excluded person could add value to the National Gambling Board and that the only person who should be excluded from membership of this Board should be a person who has been excluded from participating in gambling activities by the court.

Clause 84
Ms Ludin said the amendment to this clause is linked to the amendment to Clause 14. The Select Committee had said that as a High Court may not be accessible to the vast majority of people as it is costly, the Magistrate's Courts should be given the jurisdiction to impose penalties for a breach of licensing conditions.

Clause 87
Ms Ludin said the Department felt the requirement that all regulations be published for 90 days in the Government Gazette was too lengthy and therefore this clause was amended to reduce the time of publication to 45 days.

The Schedule
Ms Ludin said that when the Bill went to the printers, Item 2.3 was deleted instead of the words "state interests". She said this amendment is therefore to insert item 2.3 and to delete the words "state interests."

The Committee agreed to Clauses 67, 84, 87 and the Schedule.

Dr Davies thanked Ms Ludin and said that the Committee would move into the formal stage of the adoption of the National Gambling Bill at 17:30 that afternoon.

The meeting was adjourned.

Appendix 1
National Gambling Bill
Proposed alterations to B48B-2003

Clause 1

1. Definition of "family member" should be revised to read as follows:

"family member" means a person's -
(a) spouse; or
(b) child, parent, brother or sister, whether such a relationship results from birth, marriage or adoption;

2. The following new definition should be inserted:

"spouse" means a person's -

(a) partner in a marriage;
(b) partner in a customary union according to indigenous law; or
(c) partner in a relationship in which the parties live together in a manner

resembling a marital partnership or customary union;


3. The definition of "interactive game" should be altered by adding the following words at the end of the clause:


"other than a game that can be accessed for play only in licensed premises, and only if the licensee of any such premises is authorised to make such a game available for play."


4. The definition of "this Act" should be revised to substitute "schedule" for "schedules".

Clause 5
5.1 The clause should be amended to read as follows:

5.(l) An activity is a gambling game if-(a) it meets the following criteria:
(i) it is played upon payment of any consideration, with the chance that the person playing the game might become entitled to, or receive a pay-out; and
(ii) the result might be determined by the skill of the player, the element of chance, or both; or
(b) it is a bet or wager in terms of 4(1) that is placed in a casino in
relation to an activity that meets the criteria in paragraph (a).

(2) Despite subsection (1), for all purposes of this Act, none of the following activities is a gambling game:
(a) A bet or wager in terms of4(l), other than a bet or wager contemplated in subsection (1)(b).
(b) a totalisator bet in terms of section 4(2); or
(c) an amusement game.


Clause 9
6. The section should be numbered subsection (1), and paragraph (a) should be amended to read as follows:

(a) import, manufacture, supply, sell, lease, make available, possess, store or alter a gambling machine or gambling device or transport or maintain such a device except to the extent contemplated in section 23(4), unless that person is authorized to do so in terms of this Act or applicable provincial law;

7. A new subsection (20 should be added to read as follows:

(2) The Minister, by regulation made in accordance with section 87, may prescribe categories of gambling machines or gambling devices that are exempt from the application of subsection (1).

Clause 10
8. Subsection (1) should be altered by the insertion of a comma between the words "activity" and "unless" in both paragraphs (a) and (b).

Clause 13
9. The clause should be amended to read as follows:

13. A person licensed to make any gambling activity available to the public must not extend credit contrary to this Act, in the name of the licensee or a third party, to any person for the purposes of gambling. contrary to this Act.


Clause 14

10. The section should be amended to read as follows:

Excluded persons

14. (1) A person who wishes to be prevented from engaging in any gambling activity may register as an excluded person by submitting a notice to that effect in the prescribed manner and form at any time.

(2) A person who registered as an excluded person in terms of subsection (1) may submit a notice in the prescribed manner and form to cancel that registration at any time.

(3) A notice filed in terms of subsection (I) or (2) takes effect on a date determined in accordance with the regulations.

(4) A person may apply to a court of competent jurisdiction for an order requiring the registration as an excluded person of
(a) a family member of the applicant;
(1)) a person on whom the applicant is economically dependent in whole or in part;
(c) a person for whom the applicant is economically responsible in whole or in part;
((I) a person who is subject to an order of a competent court holding that person to be mentally deranged; or
(e) any other person
(i) to whom the applicant has a duty of care; and
(ii) whose behaviour manifests symptoms of addictive or compulsive gambling.

(5) T{ in the circumstances of an application in terms of subsection (4), the court
considers it reasonable and just to prevent the person concerned from engaging in any gambling activity, the court may order the registration of that person as an excluded person.


(6) An excluded person affected by an order in terms of subsection (5) may apply to the court that made the order at any time to set aside the order, and the court may do so if, after considering the grounds for making the original order and any new evidence before it, the court is satisfied that it is no longer reasonable and just to prevent that person from engaging in any gambling activity.

(7) The board must
(a) establish and maintain a national register of excluded persons in the
prescribed manner and form; and
(h) make the information in the register continuously available to-
(i) each provincial licensing authority; and
(ii) every person who is licensed to make a gambling activity
available to the public.

(8) The board may not charge a fee for registering a person as an excluded person.

(7) The Minister, by regulation made in accordance with section 87, may prescribe
(a) forms, standards and procedures for the registration of persons on, and cancellation of registrants from, the register of excluded persons,
(b) fees for services in connection with the maintenance and access to the register of excluded persons, other than the registration of excluded persons; and
(c) standards to be employed by licencees in giving effect to subsections (9) and (10).

(9) A licensee, licensed employee, or person in control of licensed premises or a
gambling machine or gambling device, must not knowingly permit an excluded person to
(a) enter or remain in a designated area within those premises; (b) operate that gambling machine or gambling device;
(c) conduct or make available a restricted gambling activity, or an
activity licensed as social gambling, within those premises; or
(d) engage in social gambling or a restricted gambling activity within those premises.

(10) A person referred to in subsection (9)
(a) must take the prescribed measures to determine accurately whether or not a person is an excluded person, before permitting that person to do anything contemplated in subsection (9)(a) to (d); and

(b) is not liable under this Act or any other civil or criminal law for
admitting an excluded person provided the licencee has taken the prescribed measures.

(11) Every licensee authorised to make a gambling activity available to the public
must
(a) make available at all of its licensed premises
(i)the prescribed form to be used by a person wishing to
register as an excluded person in terms of subsection (1); and
(ii) a directory of local recognised counselling, treatment or education services addressing the problems of compulsive and addictive gambling; and
(b) prominently post a notice advertising the availability of those materials, in the prescribed manner and form, at every entry to those premises.

Clause 15

11. Subsection (l)(c) and (d) should be deleted.

12. Subsection (2) should be amended to read as follows:

(2) Any advertisement of a gambling device, a gambling activity, or licensed premises at which gambling activities are available -

(a) must include a statement, in the prescribed manner and form, warning against the dangers of addictive and compulsive gambling; and
(b) must not include any element that directly or indirectly promotes or encourages the removal of a person from the register of excluded persons.

13. The following should be inserted as a new subsection (3):

(3) A person must not advertise or promote any gambling or related activity as being available to the public free of charge or at a discounted rate contrary to this Act, as an inducement for gambling.

14. The current subsection (3) becomes (4).

Clause 17

15. Subsection (1) should be amended to read as follows:

17. (1) No person may place or operate a cash dispensing machine contrary to this Act at any prescribed location within or near premises at which gambling activities are available to be played. contrary to this Act.

Clause 19

16. Subsection (1) should be amended to read as follows:

17(1) Every gambling machine or gambling device must be registered in accordance with this Act unless it is of a category exempted in terms of subsection (3).


17. A new subsection (3) should be added to read as follows:

(3) The Minister, by regulation made in accordance with section 87, may exempt categories of gambling machines or gambling devices from the application of any or all of the provisions of this Act.

Clauses 20 - 25

18. Section 23(4) should be amended by deleting the words "possession of" from the second line.

19. In each of the following places, insert the words "machine or" immediately before the words "device":
s20(2), in the second line
s20(2)(b)
s20(2)(c)
s21(1)(b)
s21(1)(b)(I)
s21(1)(b)(ii)
s21(1)(c)
s21(1)(c)(ii), in both occurances
s22(1), in both occurances
s22(2), in the third line
s22(3), in both occurances
s22(4), in the third line
s23(1) in the last line
s23(2), in the last line
s23(3), in the second, and also in the last line
s23(4)(b)
s23(5)(b)
s23(6)(a)
s23(6)(b)
s23(6)(c)(iii)
s23(7)(c)(ii)
s25(1)(a)
s25(2) in all three occurances

Clause 26
20. Subsection (1) should be amended to read as follows:

26. (1) Cognisant of the potentially detrimental socio-economic impact of a proliferation of limited pay-out machines, the Minister must regulate the limited pay-out machine industry in accordance with this section.

21. A new subsection (2) should be inserted to read as follows:

(2)
The Minister, by regulation made in accordance with section 87, must.

(a) establish a program for the gradual introduction of limited pay-out
machines in the Republic, in clearly defined and delineated phases;
(b) establish a mechanism for ongoing socio-economic impact assessment of he use of limited pay-out machines in the Republic;
(c) establish criteria which, on the basis of the assessments contemplated in paragraph (b), must be satisfied before the commencement of each successive phase of the program to introduce limited pay-out machines in the Republic;
(d) prescribe a limit on the number of licensed limited pay-out
machines that may be introduced in each phase
(i) within the Republic;
(ii) within any particular province; and
(iii) at any one site, and may prescribe different site maximums applicable in different circumstances;
(e) after consulting the Board, determine the circumstances in which a site may be licensed, and for that purpose, may establish different categories of sites, and different requirements with respect to each such categorv; and

7
(f) prescribe a limit on the maximum -
(i) aggregate stake permitted to commence and complete a limited pay-out gambling game;
(ii) single pay-outs allowed from a limited pay-out machine; and
(iii) aggregate pay-out in respect of each game played.

22. A new subsection (3) should be inserted to read as follows:

(3) In addition to the requirements of subsection (2), the Minister, by regulation made in accordance with section 87, may prescribe minimum standards concerning applications for licences with regard to limited pay-out gambling machines, including -
(a) standard information to be required from applicants;
(b) minimum evaluation criteria to be applied by licensing authorities;
(c) evaluation procedures to be followed by licensing authorities;
(d) compliance standards for limited pay-out machines, including the maximum number of single game cycles over a particular period of time;
(e) the methods by which a prize won on a limited pay-out machine may be paid;
(f) any essential or defining elements of a limited pay-out gambling game;
(g) the procedures that constitute the start and end of a single game on ~ limited pay-out machine;
(h) the accounting standards that must be met, and accounting records that must be kept, by route operators, site operators and independent site operators;
(i) minimum information to be provided by licensees concerning the sourcing, distribution, movements, conversions and disposal of limited pay-out machines; or
measures to limit the potentially negative socio-economic consequences of access to gambling opportunities, including public notices at licensed premises.

23. The current subsection (2), (3) and (4) become (4), (5) and (6) respectively

24. The reference in subsection (6) (a) to "subsection (l)(a)(ii)" should be changed to read "subsection (2)(d)(ii)" and the reference in subsection (6)(b) to "subsection (l)(a)(iii)" should be changed to read "subsection (2)(d)(iii)".

Clause 29
25. The reference to "this section" should be changed to read "section 28".

Clause 35

26. Subsection (2) and (3) should each be amended by inserting the word "prescribed" immediately before the word "information".

Clause 45

27. The following should be inserted as a new subsection (1), and the current subsections (1) and (2) become (2) and (3) respectively.

(I) The Minister, by regulation made in accordance with section 87, and after considering the criteria set out in this section, may prescribe a maximum number of casino licences that may be granted in the Republic, and in each province.

28. In subsection (2), the reference to "section 87" should be changed to read "subsection (1)".

Clause 50
29. Subsection (1) (d), and subsection (4)(a) should both be amended by changing the words "family member" to read "family member, other than a brother or sister".

Clause 50 - 52

30. The word "any" should be substituted for the words "5% or more" in each of the following provisions:

s.50(2)
s.50(4)
s.59(3)
3 1. On page 27, the following should be deleted:

lines 51, 52, 53 and the following words of line 54:
"(3) If a person mentioned in subsection (2)".
32. Section 52(2), should be amended to read as follows:

"(2) If a person who is disqualified in terms of section 50(2) acquires a licence, or any of the total financial interest in a licensee, that person must, within a period of not more than three years, as determined by the licensing authority after considering the circumstances and the nature of the disqualification, dispose of that licence or all their financial interest in that licensee, as the case may be.

Clause 53
33. Subsection (1) (c) should become (l)(b).

34. Subsection (I)(b) should become (1)(c), and be amended to read as follows:

(c) may impose reasonable and justifiable conditions on the licence to the extent necessary to address the matters referred to in paragraphs (a) and (b).

35. Subsection (2)(b) should be amended to read as follows:

(b) may impose further or different reasonable and justifiable conditions on the licence to the extent necessary to address the matters referred to in subsection 1)
(a) and (b).

Clause 59
36. The words "or approval of that acquisition, as the case may be." should be added immediately after "licence" at the end of subsection (1).

37. The words "or approval of an acquisition, as the case may be," should be added immediately after "licence" in line 38.

38. The words "or acquisition" should be added immediately after the word "licence" in line 40.

Clause 65
39. Subsection (1) (d)(ii) should be amended to read as follows:

(ii) habitual and obsessive addictive or compulsive gambling;
40. Subsection (2) (d) should be deleted, and subsection (2) (e) through (g) should be renumbered subsection (2)(d) through (1), respectively.

41. Section 57 (3) (d) should be altered by the addition of the following words at the end of the subsection:

"and must make information from that register available on request to any provincial licensing authority."

Clause 67
42. In subsection (3)(b), add the following words to the end of the paragraph:

"by order of a court".

Clause 84
43. The clause should be replaced by the following:

'84. Despite anything to the contrary contained in any other law, a magistrates court has jurisdiction to -
(a) impose any penalty for an offence or breach of licence condition in terms of this Act: or
(b) make an order contemplated in section 14."

Clause 87
44. In subsection (1), the following words should be added to the beginning of paragraph (g):
"matters contemplated in section 13, 15 or 17, any other matters to be prescribed in terms of this Act, and"

45. In subsection (4)(a)(ii), the "45" should be substituted for the number "90".

Clause 88
46. The section heading should be amended to read "Repeal of Laws", and the table of contents should be amended accordingly.

Schedule Item 2
47. The following sub-item should be inserted as sub-item (3):

(3) In respect of a licence contemplated in sub-item (2) -

(a) regulations made in terms of section 87( 1)(f) do not apply until the third anniversary of the date on which such regulations are promulgated; and

(b) section 46 does not apply until the third anniversary of the effective date.

48. The sub-items (3), (4), (5) and (6) become sub-items (4), (5), (6) and (7) respectively.

Schedule Item 3
49. Item 3 should be deleted, and the remaining items become items 3 through 7, respectively.

Schedule Item 7
50. The reference

(a) in paragraph (a) to "subsections (1) to (4)" should be changed to read "subsections (1) to (6)"
(b) in paragraph (a) to "section 14(5)" should be changed to read "section 14(7)"
(c) in paragraph (b) to "subsections (8) to (11)" should be changed to read "subsections (9) to (11)".

50. The following new Item 8 should be inserted at the end of the Schedule:

Regulations
51. On the effective date, and for a period of 90 days after the effective date, the Minister may make any regulation contemplated in the Act without meeting the procedural requirements set out in section 87 or elsewhere in this Act, provided the Minister has published such proposed regulations in the Gazette for comment for at least 45 days

 

NCOP Select Committee's Amendments to the National Gambling Bill (see Appendix)
Committee Annual Report 2003 (e-mail