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SUN INTERNATIONAL LAUNCHES THE MERITS OF REGULATION This article was published in The Independent, 24 November 2006 GOLDEN VALLEY CASINO Yesterday’s international gathering at Ascot jurisdictions, is almost impossible to police. limited. They knew that online gambling was racecourse to discuss the regulation of This is not just a problem with respect to illegal in the US, and that enforcement was a gambling websites, and last month’s surprise gambling. Despite some well-publicised possibility. But the lure of the massive US decision by the US legislature to ban banks successes, authorities around the world are Sun International’s R151 million casino “By providing major new tourism and leisure market was too great to resist. Their from processing payments from such sites, still finding it hard to locate the shut down sites development in Worcester, the fifth and industry infrastructure in a rural area like directors gambled – and lost. represent two very different responses to the selling child pornography. As soon as one is final casino license granted in the Western the Breede River Valley, the complex will boom in online gambling. Of the two, the shut down, another springs up. Often they But the point remains that attempting to ban Cape, opened its doors for business on draw visitors and new spending, creating approach taking shape at Ascot is by far the are registered in a country with no specific this activity is unwise. The approach outlined Wednesday, 22 November. jobs and opportunities for local businesses more sensible. yesterday by the Culture Secretary, Tessa laws targeting online paedophilia, slowing DECEMBER 2006 I ISSUE SIX and suppliers.” Jowell, for a system of internationally There are serious doubts about whether the the process of prosecuting those responsible. The Golden Valley Casino is the largest enforceable rules for online betting sites is far Locals have already felt the impact of new US law – passed in an atmosphere of There is also a very different kind of problem investment in tourism ever made in more attractive. This would give the the casino with the 316 new jobs that have moral hysteria – will be effective. Americans with British patients perfectly legally Worcester and is expected to have a authorities more leverage to shut down more been created. Of these, 126 are connected will still have easy access to gambling sites purchasing medicines on US sites that would significant and positive economic impact on grossly irresponsible sites, such as those that directly to the casino, and 190 relate registered abroad. Some will simply only be available on prescription over here. FROM THE CE’s DESK the Breede River Valley region. encourage children to gamble. A system of to concessionaires, such as the restaurant circumvent the restrictions by setting up What this shows is that, to be effective, any regulation could also compel sites to inform INTERNET GAMBLING: “The Issue” for 2007? The 4000sqm site sits on the confluence of and bars. offshore bank accounts. Indeed, it is likely regulation of the internet has to be by global customers of how much money they had lost. the N1, between Cape Town and that all this law will succeed in doing is agreement. No single country will have It can be safely anticipated that the dominant That is not to say, however, that remote driving America’s 4-million internet None of this will be possible in a world where Johannesburg, the Wine Route and the Wherever possible, companies from the much success acting alone. Of course, the South African gambling debate in 2007 will gambling is without risk to those who may be gamblers underground. online gambling sites are identified as an Garden Route. region were hired during the construction US has a right to attempt to enforce its anti- probably revolve around developments in the vulnerable to developing gambling problems, enemy to be hounded out of business – and process. Going forward, a preferential The problem is that the internet, by virtue of gambling laws. And sympathy for those field of internet gambling. In late 2005, five as certain factors associated with the online gamblers are treated like criminals. Development of an 80-room hotel on the site procurement policy will also be followed in its constantly changing nature and the ability British-based gambling companies that have years after commissioning its policy study, the development of problem gambling are is expected to begin early in 2007. relation to future business and staffing of websites to flit between different national been hit hard by the US ruling must be © 2006 Independent News and Media Limited National Gambling Board submitted a report particularly relevant to internet gambling. policies to maximise economic opportunities to Parliament recommending that policy should For example, gambling over the internet is Speaking today at the opening, Golden for residents of the region. have three primary goals: Citizen protection, available 24/7, a factor which could lead to an Valley Casino GM, Felicia Roman, said: ALEX ABERCROMBIE AND GM FELICIA ROMAN national reputation protection and the creation increase in problem gambling. Similarly, online The Golden Valley Casino has a BEE of a thriving local industry. casinos allow continuous play. Young people shareholding of 60%. Of this percentage, shareholding will come the 3.5% which is to are particularly vulnerable, because their Grand Parade Investments holds 38%, be allocated to previously disadvantaged It recommended legalisation which would familiarity with the internet may lead to an early Stripe 7 Investments 8% and Business employees through the Sun International provide for player-protection, the prevention of onset of playing, particularly when free demos Venture Investments 10%. Importantly, the Employee Share Trust. underage gambling, player ID, accessibility to on gambling sites allow them to learn the games operators, game rules, player self-limitation, community-based Breede River Valley earlier than would otherwise be the case. Gross Gaming Revenue. Obviously, at present A corporate social investment committee will credit-balance remissions and funding for the Community Trust owns 4%, with the specific there are no tax revenues coming from this sector. aim of empowering local people in the be established during the first year of National Responsible Gambling Programme. Thankfully, the NGB report recognised the operation of the Worcester Casino. As with We have argued that the main emphasis in Breede River Valley. Thankfully, South Africa has been spared reality that a number of South Africans already other properties within the Sun International South Africa should be the achievement of the the short-sighted approach of the United States, participate in various forms of interactive The casino’s operator, Sun International, group, 2% of profits after tax will be invested three internationally recognised objectives of all where the Unlawful Internet Gambling gaming, in spite of this being technically illegal good gambling regulation, namely: holds the balance of 40%, and from its in local NGOs. Enforcement Act, passed in Congress on under the current Act. Furthermore, with increasing accessibility of technology, WINELANDS MAYOR CLARENCE JOHNSON 30 September 2006, outlaws most forms of •To keep crime out; internet gambling, making it illegal for banks, mainstream marketing activities by these •To ensure fairness to customers; credit card companies and online payment enterprises and the easing of exchange control •To protect minors and other vulnerable systems to process payments to online regulations, the report had no doubt that this persons. gambling companies. activity will become more prevalent. In this context the report’s sensible goal was to provide We believe the main issues that need to be Season’s Greetings The legislation, bizarrely, does nothing to protect local players with an opportunity to engage in addressed in the legislation, which will American consumers who choose to enjoy interactive gaming legally and safely, presumably be presented to Parliament in Internet poker and other games. It is arguable preferably on South African-licensed sites. 2007, should recognise the following: from all at CASA that the immediate effect may be to drive the industry further underground as gambling sites CASA has adopted the position that the •Taxation levels would have to be set to devise new methods for getting money from, and main benefit of legalising and regulating ensure that South African sites can compete to, a market where players have shown a resilient remote gambling in South Africa is that it will globally. It should be kept in mind that demand for this type of entertainment. enable the Government to crack down on the certain highly successful sites are situated proliferation of remote gambling opportunities in tax havens or low-tax jurisdictions. This will prove to be a classic case of unintended increasingly offered (and advertised) to consequences. In the guise of protecting •CASA believes that if remote gambling were South Africans without any suitable safeguards vulnerable Americans – minors who want to legalised in South Africa, there would be being put in place to protect consumers, significant revenues for Government. At gamble and adults who can’t control their especially the young and vulnerable. present there are no tax revenues coming gambling – Congress has actually heightened from South Africans who gamble on remote the risk to these groups. It has driven away the CASA also believes that if remote gambling were sites, or from cyber-tourists who play at operators who followed the most socially legalised in South Africa, there would be remote sites operating out of South Africa. responsible practices. It has also increased the significant revenues for government since possibility of online gambling being used for South African-licensed companies would add • All South African remote gambling sites money laundering, because it has outlawed the their remote earnings to their land-based must conform to a code of practice laid FROM THE DESK CE’s most easily tracked methods of payment.

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