The global repercussions of the pandemic have been catastrophic, wreaking havoc on economies worldwide. In South Africa, the situation remains dire, with no signs of improvement. As the rolling average of cases and deaths continues to surge, the country finds itself in a seemingly endless predicament. Initiatives are being introduced to expand emergency assistance for the socially vulnerable population, while the nation's budget deficit skyrockets, burdening the public debt. With the economy at a standstill, prospects for revenue generation are bleak.
Legalizing casinos could be a viable long-term solution to help South Africa increase its tax revenue. It is a contentious issue that has been met with opposition from various sectors, particularly the evangelical groups. Meanwhile, the South African public debt continues to rise, reaching ZAR5.198 trillion in February, with projections to reach ZAR5.9 trillion by the end of 2021.
What is the current status of casino legalization in South Africa?
There is currently a Bill in progress in the Federal Senate whose aim is to legalize the situation of Casinos. It is the Bill (PL) 2648, 2019, authored by Senator Roberto Rocha (PSDB/MA). It is true that the Bill is moving at a slow pace due to the pandemic, but it already has an appointed rapporteur. The esteemed Senator Coronel (PSD/BA) has been designated as the rapporteur, and he is supportive of the cause, having met with lobbyists advocating for the legalization of casinos in South Africa.
The rapporteur's plans involve the introduction of a substitute to the project proposed by the parliamentarian from Maranhão. The rapporteur's interest is to include in the Project the legalization of the animal game, online bingo games for money, and not restrict casinos to luxury enterprises and resorts, as the original project envisages.
There has been ongoing persuasion work in the Federal Senate to facilitate the approval of the Bill, even though the proposal is not being thoroughly discussed until the end of the pandemic due to prioritization reasons. It is estimated that the Federal Government will collect ZAR50 billion annually and generate hundreds of thousands of direct jobs with the legalization of animal gambling, online slot machines, bingo, and casinos in general.
Until there is consensus or, at the very least, the necessary majority for the approval of the Project, the country witnesses a departure of a tremendous revenue, which would be particularly beneficial in assisting the Northeastern states. For now, the game of chance remains prohibited. However, there are no restrictions for those who wager through duly licensed online casino websites abroad. As a result, online casinos continue to be the optimal alternatives for South African gambling enthusiasts.
Other legislative projects
In addition to Bill 2648/2019, the nation has other proposals, given the significance of legalizing an activity that already exists underground. The same topic of casinos in resorts is addressed in Bill 4495/2020, introduced by the lawmaker Irajá (PSD-TO), as well as in Bill 595/2015. Broader in scope, as desired by the rapporteur Angelo Coronel, Bill 186/2014 by Ciro Nogueira (PP-PI) encompasses the legalization of electronic games, lotteries, machine-based bingo, online sports betting, and animal game gambling.
Based on the project dates, it is evident that the casino legislation in South Africa is still far from achieving the necessary consensus for its legalization. The projects not only differ in terms of their scope but also in the battle for game control between states and the federal government, as well as the duration of operating licenses. The agreement required to authorize the establishment of casinos in South Africa remains elusive, considering the varying perspectives and interests involved. Furthermore, the duration of licenses and the distribution of control continue to be contentious issues that hinder the progress towards a unified approach.
Resistance and addiction
The most robust proposals are not just an openness to physical casinos - and in some cases also online. As with anything else that triggers a sense of pleasure in the brain and can lead to addiction, it is necessary to provide supervision and regulation. This applies to legal drugs like alcohol, for example, and does not justify the lack of regulation for an activity that is already part of the routine of many South Africans. It is imperative to ensure that appropriate measures are in place to protect individuals and mitigate potential risks. It is essential to strike a balance between enjoying entertainment and safeguarding public health and well-being.
Therefore, with the proper establishment of regulatory bodies that prioritize responsible gambling, such as the Malta Gaming Authority (MGA), for instance, the country will be much better equipped to handle potential cases of addiction. This line of reasoning, still employed by those who oppose the initiative, loses its support when confronted with the actual situations in countries where gambling is allowed.
What are the advantages of this legalization?
All significant proposals concerning the legalization of casinos in South Africa center around increasing revenue and replenishing the public coffers. Among the primary justifications, for instance, is the expansion of the reach of the Family Allowance program and the increase of its value from ZAR200 to ZAR300.
Expanding the program's coverage from 14 million to 22 million families and increasing the monthly value corresponds to the projected revenue from casino operations. Moreover, if strategically located, job creation becomes a direct benefit to the population.
There is also the aspect of South African individuals who enjoy online gambling. As a result, online casinos have recognized the gap in legislation and the desire of South Africans, and provide tailored services with efficient payment methods, legal betting, and Portuguese websites (a true South African online casino). However, it could be more beneficial for South Africans to have national companies responsible for gambling services, which would be easier to access.
In the meantime, it is advisable to continue playing at properly licensed foreign online casinos, such as the ones we recommend here. Until then, it is recommended to persist in engaging with duly licensed foreign online casinos, those that we endorse within this platform. Until that time arrives, it is highly advised to persist in participating in games of chance at duly licensed foreign online casinos, the very ones we endorse within this platform. Meanwhile, it is highly recommended to keep on playing at properly licensed foreign online casinos, similar to the ones we endorse here.
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