Stigma holds back gambling industry - Gambling Authority
The Gambling Authority has blamed the stigma attached to gambling in Botswana for the low turnout by Small, Medium and Micro Enterprise (SMMES) in showing interest of participating in the application that paves way for the issuances of Limited Payout Machines (LPMs) licenses. LPMs are gambling machines outside of a casino in respect of the playing of which the stakes and prizes are limited. The Authority has invited prospective applicants to purchase a Request for Application (RFA) document which act as guidance to be used to provide information on the process and information required from applicants to be assessed for the award to the successful operators.
The Gambling Authority has raised concerns that ahead of the closing date next week Friday, only a limited number of SMMEs, whom the expression is primarily targeting, have shown interests. According to the Authority’s Chief of Staff, Morutshi Kemorwale, there is one major reason why SMMEs, such as bar and restaurants owners are not coming to purchase the RFA. “There is too much stigma that is associated with Gambling in Botswana.
This has been confirmed by previous studies. What is disappointing is the fact that, Batswana are shunning an industry, which globally has transformed lives, both socially and economically,” Kemorwale has told Botswana Guardian, giving an example of South Africa next door. He explained the RFA document has been created in such a way that, 'it will be seamless' for the local SMMEs who wants to actively take part in the gambling sector. “We thought it will be easy for them to participate, but the numbers tell us otherwise,” said Moruntshi, adding what is exacerbating the problem more, is lack of knowledge of the gambling industry as a whole by majority of citizens.
LPMs are gambling machines outside of a casino in respect of the playing of which the stakes and prizes are limited. All things being equal, the Authority will approve the operation of 1900 LPMs across the country. Gambling Authority, has put a spirited campaign to educate locals on the sector. On the ground, citizens have different understandings “People out there, think those who gamble are addicts and irresponsible. This is not factual, since anyone out there even those who are not gambling can become addicts and irresponsible.
It is how gambling has been perceived over the years, which is now creating problems for the industry to flourish and benefit all,” he said. The Gambling Authority spokesman said, what is needed now than ever before, is mind set change, as recently reiterated by President Mokgweetsi Masisi “I think, we, as locals, need to change our attitude towards gambling as an industry. People must just do away with the many myths associated with gambling and allow us as an Authority to deal with any problems associated with gambling,“ he pointed out as a matter of fact. The Gambling Authority continues to run a national campaign (Motshameko o phepa) aimed at de-stigmatising gambling. By educating the nation about Responsible gambling, community members will learn to differentiate problem gambling from the actual activity of gambling.
Moruntshi urged individuals and business to treat gambling, 'like any other business option', which comes with revenue and profits. By not moving fast towards showing interest in participating in the LPMs, locals are losing on the ‘gravy train’. Domestically, the gambling industry is worth over P200 million annually. “We had thought that SMMEs will come forth in big numbers to register and (if successful) become operators. This can then enable them to gain the necessary skills and technical capacity that will come in handy when the move to bigger gambling activities such as lotto, betting or bingo,” he stated. Globally, the sector is worth billions of Pula, and growing at a much faster rate than most sectors of the economy.
According to fresh research, the global gambling market reached a value of nearly $449.04 billion in 2022. It is expected to grow from $449.04 billion in 2022 to $ 765.89 billion in 2027 at a compound annual growth rate (CAGR) of 11.3%. “Even during economic recessions and challenges, the sector always shows growth. You can bank on this sector,” said Moruntshi. All things being equally, the structure of the LPM sub sector will be in such a way that, there will be the Gambling Establishment Route Operator, who will be 2 in number. Gambling Establishment Route Operator means a holder of a Gambling Establishment licence entitled to operate a prescribed number of Gambling Establishments within areas designated in terms of the Licensing and Location Plan. There will also be the site operator, which means a person who had entered into a Route Business Network agreement with a Gambling Establishment Route Operator.