NGB ANNUAL PERFORMANCE PLAN FY2021/24 - DTI
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National Gambling Board NGB ANNUAL PERFORMANCE PLAN FY2021/24
National Gambling Board
Annual Performance Plan 2021-2024 FY
Acronyms and Abbreviations
AA – Accounting Authority
AI – Accountable Institutions
APP – Annual Performance Plan
B-BBEE – Broad-Based Black Economic Empowerment
CCO – Chief Compliance Officer
CEO – Chief Executive Officer
CFO – Chief Financial Officer
COTII – Council for Trade and Industry Institutions
DPP – Department of Public Prosecution
EA – Executive Authority
EBT – Electronic Bingo Terminal
FATF – Financial Action Task Force
FIC – Financial Intelligence Centre
FICA – Financial Intelligence Centre Act
FPP – Fraud Prevention Plan
FY – Financial Year
GDP – Gross Domestic Product
GGR – Gross Gambling Revenue
GRC – Gambling Review Commission
HOD – Head of Department
ICT – Information Communications Technology
IG – Interactive Gambling
LPMs – Limited Payout Machines
MoU – Memorandum of Understanding
MTEF – Medium-Term Expenditure Framework
MTSF – Medium-Term Strategic Framework
NCEMS – National Central Electronic Monitoring System
NDP – National Development Plan
NGA – National Gambling Act
NGB – National Gambling Board
NGPC – National Gambling Policy Council
NGR – National Gambling Regulator
NGRF – National Gambling Regulators Foundation
NPA – National Prosecuting Authority
NRGP – National Responsible Gambling Programme
NT – National Treasury
PFMA – Public Financial Management Act
PLAs – Provincial Licensing Authorities
SAPS – South African Police Services
SARGF – South African Responsible Gambling Foundation
SCM – Supply Chain Management
SDS – Service Delivery Standards
SONA – State of Nation Address
the dtic – The Department of Trade, Industry and Competition
YoY – Year-on-Year
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National Gambling Board
Annual Performance Plan 2021-2024 FY
CONTENTS
Acronyms and Abbreviations ...................................................................................................2
1. ORGANOGRAM ..............................................................................................................5
EXECUTIVE AUTHORITY STATEMENT ................................................................................6
ACCOUNTING AUTHORITY STATEMENT ............................................................................8
OFFICIAL SIGN-OFF .............................................................................................................10
PART A: THE NATIONAL GAMBLING BOARD MANDATE................................................11
STRATEGIC OVERVIEW ......................................................................................................11
2. LEGISLATIVE AND POLICY MANDATES ....................................................................11
2.1. Constitutional mandate ..................................................................................................11
2.2. Legislative and Policy Mandates ...................................................................................11
2.3. Other mandates .............................................................................................................12
2.4. Policy mandates ............................................................................................................12
3. INSTITUTIONAL POLICIES AND STRATEGIES OVER THE FIVE YEAR PLANNING
PERIOD .........................................................................................................................12
4. ALIGNMENT WITH the dtic APP ...................................................................................13
5. RELEVANT COURT RULINGS .....................................................................................13
PART B: THE NGB STRATEGIC FOCUS ............................................................................14
6. OUR VISION, MISSION AND VALUES .........................................................................14
7. SITUATIONAL ANALYSIS .............................................................................................14
7.1. External environmental analysis ....................................................................................16
7.2. Internal Environmental analysis .....................................................................................18
7.3. Description of NGB strategic planning process .............................................................18
7.4. SWOT analysis ..............................................................................................................23
7.5. TOWS analysis ..............................................................................................................24
PART C: MEASURING THE NGB PERFORMANCE ............................................................26
8. INSTITUTIONAL PROGRAMME PERFORMANCE INFORMATION ............................26
8.1. Financial Plan ................................................................................................................26
8.2. Expenditure Trends .......................................................................................................26
8.3. Asset and liability management .....................................................................................26
8.4. Cash flow projections.....................................................................................................26
8.5. Capital expenditure programmes ...................................................................................27
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National Gambling Board
Annual Performance Plan 2021-2024 FY
8.6. Dividend policies ............................................................................................................27
PART D: PROGRAMME PERFORMANCE ..........................................................................28
9. PROGRAMME 1: GAMING CONTROL AND RESEARCH ...........................................28
10. GCRD TECHNICAL INDICATOR DESCRIPTION .........................................................36
10.1. Technical Indicator Description (TID): Gambling Sector Performance...........................37
10.2. Technical Indicator Description (TID): Economic Analysis and Research conducted on
the impact of Gambling ..................................................................................................38
10.3. Technical Indicator Description (TID): Section 65 Advice ..............................................39
10.4. Technical Indicator Description (TID): Technical Analysis on Gaming Control and
Regulation .....................................................................................................................40
10.5. Technical Indicator Description (TID): Percentage uptime on Functional National
Registers .......................................................................................................................41
10.6. Technical Indicator Description (TID): Percentage uptime of National Central Electronic
System (NCEMS) ..........................................................................................................42
10.7. Technical Indicator Description (TID): Economic Transformation in the mainstream
gambling industry...........................................................................................................43
11. PROGRAMME 2: CORPORATE AND STAKEHOLDER ENGAGEMENT .....................44
12. CSED TECHNICAL INDICATOR DESCRIPTION .........................................................48
12.1. Technical Indicator Description (TIDs): Number of Broad-Based Public Educational
interventions about the risks of and Socio-Economic Impact of gambling .....................48
13. THE DTIC’S JOINT KEY PERFORMANCE INDICATORS ............................................50
PART E: LINKS TO OTHER PLANS ....................................................................................58
14. ASSET MANAGEMENT PLAN ......................................................................................58
15. INFORMATION TECHNOLOGY Plan ...........................................................................58
16. FRAUD PREVENTION PLAN ........................................................................................58
17. MATERIALITY AND SIGNIFICANCE FRAMEWORK....................................................58
18. RISK REGISTER ...........................................................................................................58
19. SERVICE DELIVERY STANDARDS .............................................................................58
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Annual Performance Plan 2021-2024 FY
1. ORGANOGRAMNational Gambling Board
Annual Performance Plan 2021-2024 FY
EXECUTIVE AUTHORITY STATEMENT
This Annual Performance Plan (APP) of the National Gambling Board (NGB) has been prepared
by the management for consideration by the Executive Authority and tabling in Parliament. The
Annual Performance Plans (APP) of public entities identify the outputs, output indicators and
targets that an entity aims to achieve in the new financial year. The Executive Authority is
responsible to ensure the APP is aligned with the Strategic Plan, the institution’s mandate and
government’s priorities and to provide direction on the development and implementation of
strategic priorities and policies.
The Covid-19 pandemic changed the landscape within which DTIC-entities operate and they are
therefore expected to adjust their operations to address the new environment and new priorities.
There is an urgent need to boost levels of economic growth and economic recovery, support
transformation and build a capable state.
In particular, the APP for the 2021/22 financial year will need to reflect the policy priorities set out
in Budget Vote statements tabled in Parliament during this Administration and those that arise
from:
• The Economic Recovery and Reconstruction Plan tabled in Parliament in October 2020 by
President Ramaphosa.
• The priorities set out in the 2021 State of the Nation Address
• The new performance compacts between members of the Executive and the Presidency signed
in November 2020; and the
• New District Development Model as an integration of development efforts at local level.
This APP is tabled and updates to the Plan – when these are effected – will be tabled in Parliament
in due course, taking account of the above.
As the practical means to ensure alignment between APPs and policy priorities, the Annual
Performance Plan for the DTIC itself has sets out the requirement to ensure integration between
the work of the department and all public entities that report to it. Seven new Joint-Indicators (J-
KPIs) have been developed for the DTIC that contain the major policy priorities and these are
expected to be included in the work of the NGB, with progress against these to be reported to the
Ministry on a quarterly basis.
Entities will be expected to show how, within their legal mandate, they have contributed to the
achievement of the outcomes for the following seven Joint Indicators (details of which are
contained in more detail in the APP of the department itself):
• Joint Indicator 1: Integrated Support to Drive Industrialisation
• Joint Indicator 2: Contribution to the development of an AfCFTA Export Plan
• Joint Indicator 3: Investment Facilitation and Growth
• Joint Indicator 4: Development Model and Spatial Equity
• Joint Indicator 5: Actions to Promote Transformation
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Annual Performance Plan 2021-2024 FY
• Joint Indicator 6: The Green Economy and Greening the Economy
• Joint Indicator 7: Strengthening and Building a Capable State
In this way, the combined efforts of all public entities will begin to be aligned to the national
priorities in a more explicit manner. The Joint-Indicators cover, among others, the work of sector
masterplans, initiatives to boost levels of investment and localisation in the economy, expanding
trade within the continent, enabling better local economic development, supporting the growth of
new industries (in the green economy and through beneficiation) and building a capable state. In
respect of Joint-Indicator 7 for example, all public entities will be required to review their
procedures, timeframes for delivery, forms to be filled in and public communication of services to
simplify these, make processes expeditious where possible, remove unnecessary red-tape where
these exist and make it easier for users to access services.
This APP is therefore not about many new objectives but rather on a new way of implementation,
with the focus on integration, to enhance the development impact of the work. I therefore endorse
the work to align the APP of the NGB with the national priorities and accordingly table the APP for
the NGB in accordance with the request by the Speaker.
EBRAHIM PATEL
MINISTER OF TRADE, INDUSTRY AND COMPETITION
31 March 2021
Date: ………………………….
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ACCOUNTING AUTHORITY STATEMENT
The vision of the NGB is to position South Africa as the pre-eminent jurisdiction with an exemplary
and effectively regulated gambling industry. To achieve this, the organisation is tasked with priority
delivery areas within the context of the FY2021-2026 Strategic Plan for the NGB, but most
importantly taking into account broader economic strategies for the South African economy as
enshrined in the National Development Plan (NDP) Five- Year Implementation Plan and the
Monitoring Framework for the NDP Five-Year Implementation Plan. In addition to this, the recent
global COVID-19 pandemic, which has shaken the world over and resulted in a response by the
South African government by way of an Economic Reconstruction and Recovery Plan, requires
the organisation to design its APP in a way that entails building a sustainable, resilient and
inclusive economy.
The previous financial year (FY2020/21) presented the organisation with many challenges in
trying to deal with the shock of the COVID-19 pandemic and navigating through the effects it
presented for the gambling industry. For the first time in history, the gambling industry gross
gambling revenues plummeted by close to 100%, leaving the industry on its knees and threatened
by gambling establishment closures and consequently job losses. However, notwithstanding the
difficult environment, the NGB was still able to achieve its objectives of ensuring that it monitored
market share and market conduct in the gambling industry, conducted economic analysis and
research on the impact of gambling, provided authoritative advice policy, statutory matters and
legislative reform in the gambling industry, conducted technical analysis on gaming control and
regulation, maintained functional national registers and an operational National Central Electronic
Monitoring System, monitored economic transformation opportunities for HDIs in the mainstream
gambling industry and better informed and educated stakeholders. Specifically, the NGB in liaison
with the Provincial Licensing Authorities submitted proposal on the future regulation of gambling,
as well as an economic recovery strategy for the gambling industry in response to the global
pandemic effects on the industry.
Moving forward, in FY2021/22, the NGB continues on its quest to enhance broad based public
education, effectively monitor socio-economic patterns of gambling activity within the republic,
ensure uniformity of legislation in the gambling industry, account for and identified all legal
gambling machines, devices and owners, licensed juristic and natural persons and excluded
persons and promote economic transformation and increased participation of HDIs in the
mainstream gambling industry. This will be done with a strategic focus of responding to emerging
risks in a way that continues to balance consumer choice and enjoyment against the risks
associated with gambling and the wider potential economic and social impacts.
The NGB endeavours to align its plan with the South African Economic Reconstruction and
Recovery Plan by ensuring the successful implementation of the Plan through complementing its
key enablers as well as instituting structural reforms to support the Plan. The NGB will target its
resources more effectively to meet the regulatory challenges of a changing industry coming out
of the pandemic while at the same time holding the industry to account for the responsible conduct
of gambling.
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Annual Performance Plan 2021-2024 FY
This APP reflects the NGB’s commitment to effectively address all the strategic issues in the
gambling industry for its sustainability with stakeholders, both in the public and private sectors to
contribute towards job creation, the objectives of the NDP and other government developmental
initiatives.
______________________
Ms Caroline Kongwa
Accounting Authority
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Annual Performance Plan 2021-2024 FY
OFFICIAL SIGN-OFF
It is hereby certified that this Annual Performance Plan:
Was developed by the management of the NGB under the guidance of Ms Caroline
Kongwa in her capacity as the Administrator and Accounting Authority of the NGB
Takes into account all relevant policies, legislation and other mandates for which the NGB
is responsible
Accurately reflects the outcomes and outputs which the NGB will endeavour to achieve
over the period 2021 - 2024.
__________________________
Ms Bawinile Ngcobo
Acting Chief Compliance Officer
_____________________________
Ms. Poppy Kweyama
Chief Operations Officer
_____________________________
Ms Kaveshka Mackerduth
Chief Financial Officer
___________________________
Ms. Caroline Kongwa
Accounting Authority
Approved by:
___________________________
Mr Ebrahim Patel
Minister of Trade, Industry and Competition
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Annual Performance Plan 2021-2024 FY
PART A: THE NATIONAL GAMBLING BOARD MANDATE
STRATEGIC OVERVIEW 2.2. Legislative and Policy Mandates
The NGB is established in terms of the The NGB is established in terms of the NGA.
National Gambling Act, 2004 (Act 7 of 2004) The NGB is established as a Schedule 3A
(“the NGA”) under the Executive Authority Public Entity in terms of the Public Finance
(EA) of the Minister for Trade, Industry and Management Act (PFMA), 1999 (Act 1 of
Competition, to enable Department of Trade, 1999). The mandate of the NGB is set out in
Industry and Competition (the dtic) to sections 33 and 34, read with sections 32, 21
achieve its objectives and ultimately its and 65 of the NGA, and these are:
mandate. The NGB’s mandate is to promote
Oversight of gambling in the Republic of
gambling activities in a legal, safe and crime-
South Africa by:
free environment and protect punters from
Evaluating the issuing of national
the over-stimulation of the latent need to
licences by the PLAs
gamble.
Evaluating the compliance
monitoring of licensees by PLAs
Conducting oversight evaluation of
2. LEGISLATIVE AND POLICY
the performance of PLAs so as to
MANDATES
ensure that the national norms and
2.1. Constitutional mandate standards established by the NGA
are applied uniformly and
In the Republic, the government is consistently throughout the Republic
constituted as national, provincial and local Assisting PLAs to ensure that the
spheres of government which are distinctive, unlicensed gambling activities are
interdependent and interrelated. The detected
Constitution of the Republic of South Africa,
1996, Schedule 4, Part A sets out gambling Monitoring of market conduct and market
as a concurrent legislative competence and share
lists casinos, racing, gambling and wagering
(excluding lotteries and sports pools) as Monitoring socio-economic patterns of
functional areas for both national and gambling activity and research and
provincial government. Section 146 of the identify patterns of the socio-economic
Constitution applies to a conflict between impact of gambling and addictive or
national legislation and provincial legislation compulsive gambling
falling within a functional area listed in
Schedule 4. Establishing and maintaining a national
registry of every gambling machine or
All spheres of government must observe and gambling device manufactured within or
adhere to the principles of co-operative imported into the Republic, as well as
government and intergovernmental relations maintaining all other legislator
and must conduct their activities within the prescribed registers
said principles.
Investigating the circumstances of any
gambling activity that relates to unlawful
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winnings that the NGB has held in trust, amongst others, matters of national policy
and either deliver the winnings to the and legislative changes relating to gambling.
person who won them if not found to be
illegal winnings or apply to the High 3. INSTITUTIONAL POLICIES AND
Court for an order to declare the STRATEGIES OVER THE FIVE
winnings forfeited to the state if the YEAR PLANNING PERIOD
gambling activity was found to be illegal
There are various Government policies and
Advising and providing plans which continue to inform the NGB’s
recommendations to the NGPC on, strategic direction and implementation of its
amongst others, matters of national mandate in order to achieve its intended
policy and legislative changes relating outcomes. The NGB has aligned its strategy
to gambling with the following:
2.3. Other mandates The National Development Plan
(NDP), 2030
The implementation of the of the NGB’s The Medium Term Strategic
mandate is also indirectly governed by the Framework 2019-2024
following legislation: The National Gambling Policy, 2016
The South African Economic
Constitution of the Republic of South Reconstruction and Recovery Plan,
Africa, 1996 Public Finance 2020
Management Act (PFMA), 1999 (Act 1
of 1999) In his State of the Nation Address on 11
The Prevention of Organised Crime Act February 2021, his Excellency the President
(POCA), 1998 (Act 121 of 1998) of the Republic of South Africa focused
The Financial Intelligence Centre Act strongly on the Economic Reconstruction
(FICA), 2001 (Act 38 of 2001) and Recovery Plan, laying out four (4)
Broad-Based Black Economic priority interventions to be focused on,
Empowerment Act (B-BBEE), 2003 (Act namely:
53 of 2003)
Consumer Protection Act (CPA), 2008 A massive rollout of infrastructure
(Act 68 of 2008) throughout the country
Competition Act, 1998 (Act 89 of 1998) A massive increase in local
Intergovernmental Relations production
Framework Act (IGRFA), 2005 (Act 13 An employment stimulus to create
of 2005) jobs and support livelihoods
The rapid expansion of our energy
2.4. Policy mandates generation capacity
The strategic outcomes and interventions
The NGA is premised on the National
laid out by the NGB for FY2021-2026 were
Gambling Policy, 2016 through which the
specifically set to complement this plan.
outcome of the key performance of the NGB
manifests by the effect and quality of its
advice and recommendation to the NGPC on,
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4. ALIGNMENT WITH the dtic
APP
Joint Indicator 2: Contribution to the
development of an AfCFTA Export
The National Gambling Board will also Plan;
support the Economic Reconstruction and Joint Indicator 3: Investment
Recovery Plan, 2020, and the seven new Facilitation and Growth;
joint indicators which are the implementation Joint Indicator 4: Development Model
plans aligned to the NDP. and Spatial Equity;
The National Gambling Board objectives are Joint Indicator 5: Actions to Promote
set out in the National Gambling Act, 2004. Transformation;
As a regulatory body it can determine the Joint Indicator 6: The Green Economy
outcomes of these objectives by aligning its and Greening the Economy; and
regulatory mandate to meet the objectives of Joint Indicator 7: Strengthening and
the NDP and the dtic. The seven new joint Building a Capable State.
indicators are:
Joint Indicator 1: Integrated Support to The performance progress with
Drive Industrialisation; regards to all seven new joint
indicators will be reported quarterly to
the Dtic.
5. RELEVANT COURT RULINGS
There are no relevant court rulings that have
a significant, ongoing impact on operations or
service delivery obligations.
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Annual Performance Plan 2021-2024 FY
PART B: THE NGB STRATEGIC FOCUS
6. OUR VISION, MISSION AND VALUES
7. SITUATIONAL ANALYSIS
The gambling industry continues to grow, the highest growth being in the betting sector
with revenue reaching over R32 billion in followed by the bingo and then Limited
FY2019/20. Positive growth in gross Payout Machines (LPMs) sector. The taxes
gambling revenue (GGR) between or levies collected from the industry as a
FY2018/19 and FY2019/20 was witnessed in source of revenue for the government
all modes of gambling except casinos, with amounted to R3.2 billion in FY2019/20, an
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Annual Performance Plan 2021-2024 FY
increase from the previous financial year. The currently monitors the LPM sector through a
casino sector continues to dominate the technologically driven National Central
market space generating the greater Electronic Monitoring System (NCEMS)
proportion of gambling revenue. However, ensuring that gambling revenues are
this share in the total market has been accurately captured and allocated to the
declining over the years as there was an relevant stakeholders.
upward surge in revenue generated in other
modes of gambling i.e. betting on horse From a political perspective, the NGB has
racing and sport, LPMs and bingo. been involved in continuous deliberations on
the National Gambling Amendment Bill,
The end of FY2019/20 was marred by the 2018. The purpose of the bill is to provide for
entrance of a global pandemic (COVID-19) the reconfiguration of the NGB to become the
that left the international community, the National Gambling Regulator (NGR) led by a
domestic economy and the gambling industry Chief Executive Officer (CEO) without a
in economic turmoil, as countries instituted board structure; the automatic forfeiture of
stringent measures to contain the spread of unlawful winnings to the NGR; the extension
the virus. Pandemics like the Coronavirus are of the NCEMS to other modes of gambling;
known to cause economic damage through and the enhancement of the powers of the
multiple channels, including short-term fiscal national inspectorate to curb illegal gambling
shocks and longer-term negative shocks to activities; amongst others.
economic growth. The gambling industry in
South Africa was not spared by the impact of The economic imperative to promote
declaring a national state of disaster that was economic inclusion by enhancing economic
announced in South Africa at the end of participation of historically disadvantaged
March 2020. This negatively impacted and individuals continues to be an opportunity for
threatened the destination model to gambling the NGB to leverage its internal strategic
in South Africa, as people were unable to factors. The NGB researches key gambling
access three of the modes of gambling issues to inform the legislative and policy
namely, casinos, limited payout machines environment.
(LPMs), and bingo, while bookmakers were Economic and social challenges are key
also affected negatively by the cancellation of focus areas to be addressed by the NGB and
numerous sporting events that they depend the gambling industry. The current
on for the outcome of betting contingencies regulations attempt to address the economic
such as sports and horse racing, and their challenges; however, work still needs to be
betting shops were also closed. done to ensure the proper application of
these regulations.
The gambling environment is continuously
changing due to new technology with a host Enhanced regulation from an enforcement
of new products coming into the market. This perspective is required to enable mass
presents a challenge for a gambling monitoring of online traffic to identify
regulator, as the NGB, and requires the gambling-related activities and gambling by
regulator to be innovative and agile in minors, as well as prohibiting the offering of
achieving its objectives. To support improved illegal online gambling services to the South
industrial performance, dynamism and African public. Improved provisions in the
competitiveness of local companies, the NGB legislation will enable enforcement officers to
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Annual Performance Plan 2021-2024 FY
gather and consolidate intelligence about inform the implementation of the entity's
illegal gambling and to eventually blacklist strategy:
illegal operators. a) To position the NGB strategically and
advocate delivery in accordance with
As part of its efforts, NGB considers a need national gambling legislation
to strengthen relations with both the PLAs b) Substantive review of the NGA
and all stakeholders including the law c) Economic analysis of gambling in RSA
enforcement agencies. Through collaborative d) Foster harmonisation and uniformity in
efforts, appropriate dispute resolution the gambling industry
mechanisms and the identification of illegal e) Gaming control and regulation
operators, an action plan to curb illegal f) Position the NGB as a pre-eminent
gambling and focused awareness national regulator
programmes can be designed to avoid inter- g) National repository for gambling-related
governmental disputes, overwhelming information
illegality in the gambling industry and h) Engaging in opportunities which create
promotion of responsible gambling platforms for the benefit of the country
respectively. with reference to gambling law
enforcement
The development of national enforcement i) Enhance national enforcement
strategies by multi-disciplinary law capabilities to lead banning and
enforcement agencies and continuous suppression of illegal gambling in the
collaboration is key to ensuring that detected South Africa
illegal gambling activities receive the j) Leveraging from the mandates of other
necessary attention. law enforcement agencies to advance
gambling law enforcement.
The NGB will increase its efforts to provide k) Create an enabling environment that
education in terms of the risks and the socio- fosters foreign direct investment in this
economic impact of gambling and to educate industry
the public in the reporting of illegal gambling l) Determine the size and shape of the
activities. The NGB will also increase its industry as reflected in the monitoring of
efforts to ensure the prosecution of operators market conduct and market share and
who are found to be offering illegal gambling reporting on gambling sector performance
activities and the forfeiture of unlawful by the NGB
winnings to the State. It is a priority that there m) Facilitate and monitor the transformation
is the successful prosecution of illegal of the industry in line with the B-BBEE Act
operators and that the public is informed and Codes of Good Practice
about the consequences of participation in n) Informing and educating the public and
illegal gambling activities. stakeholders about the socio-economic
impact and risks of gambling
7.1. External environmental analysis o) Increased monitoring capacity of all legal
modes of gambling through extending
The NGB regularly scans the gambling NCEMS
environment to identify opportunities to p) Conceptualisation on the best
execute the NGB’s mandate. The following approaches to the regulation of betting
key priorities have been identified which q) Regulate technologically advanced forms
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Annual Performance Plan 2021-2024 FY
of gambling together to strengthen the capacity to prohibit
r) Promulgation of regulations for excluded and combat illegal gambling.
persons
s) Provision of alternative dispute resolution It is a priority that there is successful
mechanisms to punters prosecution of illegal operators and the public
t) Increase of revenue base towards is informed about the consequences of
becoming a self-sustaining entity participation in illegal gambling activities. The
u) Conduct research on the socio-economic aim is to provide education in terms of the
patterns and consequences of gambling risks and socio-economic impact of
v) Conceptualisation of cost-effective gambling. In addition to educate the public on
resolution of unlawful winnings their role to assist the NGB in the
w) Legislative reforms in order to effectively identification and reporting of illegal gambling
regulate gambling. activities.
The NGB has developed a strategy that is The legal industry is affected by the
outcome-focused, taking into account mushrooming of illegal gambling which
gambling regulation expertise, leadership creates direct unregulated competition and
and regulatory certainty. The NGB has this scenario is of huge concern to regulators.
created a social dialogue with various For example illegal gambling operators who
stakeholders in the gambling industry locally, offer illegal online gambling to South Africans
on the African continent and internationally. do it in such a way that participation is
The rationale for the creation of such a broad perceived as legal. They provide step by step
forum is for conversations on gambling instructions to deposit money in Rand
issues amongst all stakeholders and currency and advertise their business by
specifically regulators to enhance the NGB’s referring to South Africans who won huge
capability to regulate the South African amounts of money thus encourage (potential)
gambling industry. gamblers to participate. In some instances,
they publish the NGB logo and that of the
The NGB considers a need to strengthen South African Responsible Gambling
relations with both the PLAs and all Foundation, which gives a false impression
stakeholders including the law enforcement that unregulated online gambling is legal in
agencies. Through collaborated efforts, South Africa.
appropriate dispute resolution mechanisms
and identification of illegal operators, an In event Illegal gambling operators are not
action plan to curb illegal gambling and pursued they are able to use their gambling
focused awareness programmes can be offerings to mislead the public, and where
designed to avoid inter-governmental there is a lack of knowledge regarding
disputes, overwhelming illegality in the licensed and unlicensed forms of gambling by
gambling industry and promotion of a punter the resultant effect would be
responsible gambling respectively. participation in illegal gambling.
Bilateral and multilateral agreements to Lack of uniform and effective national policy
permit enforcement across the South African implementation of the licensing regime
borders would require regulators to work (licensing forms of gambling, which are not
envisaged from a national perspective),
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Annual Performance Plan 2021-2024 FY
remains a challenge and is an ongoing Create a learning and development
debate. Gambling-related crimes are still not organisational culture
regarded as a high priority offence by South Strategic talent acquisition and retention
African law enforcement agencies, thus for organisational effectiveness
creating a challenge to manage the problem. Overhaul the organisational reward
Increased collaboration with the South strategy
African Justice System and joints monitoring An integrated information management
and implementation of the national system
enforcement strategies by multi-disciplinary Legislative compliance and diversity
law enforcement agencies is key to ensuring
that detected illegal gambling activities are The NGB is required to comply with the
alleviated. prescripts of the B-BBBE Act, 2003. As such,
an assessment was conducted by a B-BBEE
South African financial institutions are verification agency against the requirements
frequently utilised as mediums of exchange contained in the B-BBBE generic scorecard
between an online gambler and illegal online applicable to government enterprises. The
operator’s. Although banks play a huge role NGB was rated with a B-BBEE compliance
in detecting unlawful winnings, the scope of Level 8 status i.e. a non-compliant entity.
financial transactions that they deal with is Notwithstanding this, the NGB will continue to
extensive hence it becomes a challenge for implement measures to improve its
banks to report financial transactions that compliance level and adhere to the letter and
specifically relate to winnings which emanate spirit of the B-BBEE Act, 2003.
from illegal gambling.
ICT systems and processes are in place
7.2. Internal Environmental analysis within the NGB. The ICT infrastructure
adequate and is positioned to enable the
The NGB, as the implementing agent of the organisation to perform its functions
dtic, is dependent on a financial grant from effectively and efficiently thus ensuring that
the dtic. However, the NGB raises additional the NGB is able delivering on its mandate.
revenue to deliver on all key performance
areas as per the NGB’s mandate. 7.3. Description of NGB strategic planning
process
The NGB has distinguished itself, based on
effective systems, processes, resources and The NGB is committed to an ongoing,
organisational culture, as an efficient, inclusive process of strategy development,
effective and well-recognised gambling planning, alignment and review. As an
regulator that maximises its potential for the important part of this process, the NGB
benefit of stakeholders, staff and engages with its key stakeholders and
management. The following strategic human obtains structured inputs into its planning and
capital pillars have been identified for the next review process.
five (5) years in order to ensure that human
capital issues are effectively addressed: In developing the strategic plan, the NGB has
Create a high-performance taken into account the NDP as the
organisational culture, recognising overarching program that guides
teamwork and spirit Government priorities of the current
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Annual Performance Plan 2021-2024 FY
administration as well as the current MTSF corporate strategy. The different programs of
2019-2024. This is captured in the link the NGB are underpinned by a budget that is
between the NGB objectives, MTSF 2019- based on the ability of the NGB to receive
2024 and the objectives and vision of the grant funding from the dtic, as well as the
NDP. entity being in a position to generate its
revenue over the outer lying years in the
Secondly, the priorities of the dtic were taken MTEF period. The overall financial plan takes
into account, to ensure that there is alignment into account the asset management plan to
between the NGB objectives and the dtic ensure the NGB has adequate levels of
priority areas. In thus implementing its capital and liquidity to meet the regulatory
Strategic Plan, the NGB will work towards and operational requirements on a
fulfilling the industry policy objectives as sustainable basis.
directed by the Minister of Trade, Industry
and Competition. A situational analysis was Political
conducted to identify and evaluate the
existing internal and external elements or The strategic plan for FY2021-26 aligns with
environment that may impact on the NGB’s the vision of the administration that came into
ability to achieve its strategic objectives. A effect in 2019. The regulation of the gambling
SWOT analysis which is an assessment of industry is influenced by policy, and new
the NGBs strengths, weaknesses, policy changes, such as possibly legalising
opportunities and threats as well as PESTEL online gambling, or a review of the concurrent
which assesses the external elements or legislative competency model, would logically
environment relating to political, economic, impact how gambling is regulated in the
social, technology, environment, and legal country.
were used to understand the NGB’s
capabilities, customers, and business The National Gambling Policy, 2016
environment. TOWS (threats, opportunities, necessitated the amendment of the NGA.
weaknesses, strengths) analysis was also The National Gambling Amendment Bill of
used as a guiding tool to identify the extent to 2018, if passed, will provide an opportunity to
which the NGB’s strengths and weaknesses bring about necessary amendments to the
are relevant to or capable of dealing with the NGA, to address existing challenges and to
changes taking place in the gambling introduce new approaches to enforcement
environment. The TOWS is the methodology against illegal gambling and better regulation
used to derive the NGB’s outcomes. of legal gambling.
The overall risk appetite of the organisation Urgent attention should be given to the
has been revisited to take stock of the new prescribing of certain dates in terms of
challenges in the external environment, transitional provisions contained in the
changes in the regulatory framework, the Schedule to the National Gambling Act, 2004,
internal control environment and the degree matters about Excluded persons and
of oversight exercised by the NGB as a National Registers, Re-certification of
whole. Gambling machines and devices, Unlawful
winnings remitted to the NGB by persons
An updated risk register has been developed other than licensees in terms of section 16
as part of the risk assessment of the new and Form NGB2.
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Annual Performance Plan 2021-2024 FY
Certainty is required to urgently and government, and could also result in
expeditiously deal with disputes between the retrenchments in the industry. This scenario
NGB and PLAs regarding interpretation and can be further predicated upon international
implementation of the NGA ; implementation economies and trends, with the risk of the
of the B-BBEE Act, 2003; alignment of laws recession of the global economy. This would
and the underlying spirit of co-operative no doubt reduce investment in the gambling
governance. The existing challenges that industry.
hinder the effectiveness of the National
Gambling Policy Council (NGPC) continue to Domestically, a high unemployment rate is a
impede the NGB achieving its mandate. contributing factor to people choosing to
gamble, especially through illegal gambling
Economic offerings. Such punters are driven by the
desire to achieve economic freedom as a
The introduction and legalisation of gambling result of economic desperation. At the same
in terms of the NGA ensures that revenue is time, other punters may well be aware of the
generated for the country in a manner that legislation governing legal modes, but
fulfils the objects of the NGA. The economic continue to participate in illegal modes of
contribution that the industry makes to the gambling, commonly unregulated online
economy creates an enabling environment gambling, regardless of possessing the
that will further facilitate job creation. Indeed, knowledge that it is illegal. In most cases,
one of the economic benefits derived from the such punters are found to be the more
gambling industry in South Africa is its ability affluent group driven to participate in illegal
to generate revenue for the government, gambling mainly for entertainment and
which supports the administration of fiscal leisure purposes. Generally, a steady
policy in the form of government expenditure increase in disposable household income
towards economic development, could increase the propensity to gamble as
infrastructure improvement, building schools, discretionary income increases. This practice
and enhanced service delivery amongst is usually high during the festive season.
others. The gambling industry has enjoyed
year-on-year growth in Gross Gambling From an industry perspective, the NGB has
Revenue (GGR), which is a positive also been observing slow industry
contribution to GDP. Gambling revenues transformation regarding B-BBEE. While
reached R32 billion in FY2019/20. Taxes and licensed operators may be B-BBEE
levies derived from the industry amounted to compliant due to such compliance being part
R3.2 billion growing from previous financial of licence application requirements, there is a
years, displaying the need for continued and distinction to be made between black
effective regulation of the industry and empowerment through control, and black
dialogue between stakeholders to lead to empowerment through equity.
economically sustainable gambling industry. Transformation in the form of equity transfer
remains a challenge. The gambling industry
However, slow economic growth and is also encouraged to provide opportunities to
recession due to the impact of the COVID-19 new entrants, particularly the historically
pandemic could see a reduction in gambling disadvantaged individuals, women and
revenue and tax collection, which would, in youth.
turn, erode revenue generation for
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Annual Performance Plan 2021-2024 FY
The gambling industry has also been of the industry for long periods of time as
transforming through a growing trend of countries fight the spread of disease may
mergers between operators, and this space result in punters seeking to partake in
needs to be monitored. On the one hand, unregulated gambling activities.
mergers may be positive to the industry as
the combining of skills, resources and access Another factor that can lead to over-
can create new opportunities and provide stimulation is the accessibility of gambling
longer-term stability. On the other hand, through mobile devices, and in particular, to
mergers between large role players can young people that favour the use of
create monopolies that would stifle existing technology rather than traditional methods of
smaller competitors and create barriers to gambling. As more young people gain access
entry for prospective entrants that may be the and are likely to use technology in various
very target of the transformation efforts of the ways in their lives, it is important for the NGB
government. However, there is regulatory to be vigilant of the growing population of a
uncertainty whether such mergers are anti- technologically literate generation and to
competitive or not, as no determination identify strategies that will guide and assist
regarding this issue has been made. The this group with the awareness of the dangers
NGB is of the view that this should be of gambling.
explored and resolved.
Research has identified that the profile of the
Social punter is changing – younger people (18-35
years) are engaging in gambling due to the
The NGB is required to coordinate and evolution of gambling offerings. The use of
ensure that society is protected against the mobile devices may further allow players to
over-stimulation of the latent need for bet on the outcome of various contingencies
gambling. This implies that as part of its simultaneously from the convenience of their
strategic plan, the NGB should monitor the location and may be encouraging new types
likely impact and negative effects of gambling of players and new styles of play. For
on the community to ensure that there is example, the developers of games have
increased awareness and education. identified that millennials find games of
chance unappealing, and prefer games that
Persistent poverty and inequality contribute incorporate the element of skill, and have
to gambling being perceived as an income- adapted their offerings to target this market
generating activity as opposed to a segment.
recreational activity, leading to more punters
becoming involved in illegal gambling. Advertising of gambling is also a factor, as it
Compulsive and addictive gambling is a huge is not illegal to advertise, and licensed
social problem, as it affects not only the operators also sponsor events and TV
individual that is addicted, but also their shows, which are aimed at having a wider
families and society. reach into society to draw more punters to
their offerings. This is also supported by the
One social factor the is the impact of influence of social media platforms.
gambling to the public health of citizens
further global pandemics which subsequently The NGB will continue to monitor the
lead to nationwide lockdowns and shutdowns negative effects of gambling and has planned
Page 21 of 59National Gambling Board
Annual Performance Plan 2021-2024 FY
to increase its efforts to raise public devices and gamblification. The use of mobile
awareness and provide targeted education devices to partake in gambling will be a
interventions. This will include the use of growing challenge to gambling regulators.
technology such as social media to counter The ease of access to gambling products as
the risks of ignorance and misinformation and a result of mobile devices can potentially lead
advocate responsible gambling. to over-stimulation and problem gambling.
Technology At the same time, the constant arrival of
inventions and innovation, such as virtual
Technology has always played a role in the sports and Electronic Bingo Terminals
development of gambling practices and (EBTs) will place a strain on the effectiveness
continues to provide new market of existing regulations, which may be
opportunities and simultaneously challenges deficient as such technology did not exist at
for regulators. Specifically technological the time that such regulations were
advancement has a bearing on social developed.
interaction and communication (social
networking), where new technologies skirt As gambling becomes diverse and embraces
the gambling regulatory aspects. new technologies, it raises the question of
whether the existing regulatory framework is
The fourth industrial revolution (known as agile and able to withstand the disruption that
4IR) is already upon us, and the regulatory technology presents. The NGB has to
environment is impacted by rapidly changing consider whether it is necessary to develop a
technology. New products and offerings are legal framework to regulate gambling
continuously developed through technology. products and services as opposed to the
We are already in a world of artificial existing legal framework remaining
intelligence, virtual reality and “the Internet of technologically neutral.
Things” (IoT), and the rate of change is itself
increasing. Faster Internet Connectivity (5G) The NGB will continue to monitor the impact
was also anticipated to be rolled out in South of technology through conducting research to
Africa by 2020, and this will make NGB build a knowledge base for advice to its
systems such as NCEMs and the national stakeholders.
registers more easily accessible, accelerate
the collection of data and improve the Environment
efficiency of business processes. The result
will be that through technology, the NGB will Although technological advancements
be able to fulfil its mandate more efficiently. enable more gambling services to be offered
This also creates opportunities for new online, the South African regulatory model
research to be conducted. favours the destination approach, as this
requires some effort to gain entry to licensed
However, new ways of offering and gambling premises. These brick-and-mortar
accessing gambling as a result of establishments are now under threat as a
technological advancement affect both result of the impact of technology, and this
regulation and enforcement. It opens the door has had an impact on their profitability.
to increased illegal gambling such as online
gambling by minors due to access on mobile
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Annual Performance Plan 2021-2024 FY
The imposition of smoking bans through the This authority to evaluate the issuance of
enactment of legislation is expected to further national licences and compliance monitoring
erode the profits of such operators, as they of licensees by PLAs, by conducting
have to either invest in costly infrastructure oversight over PLAs for compliance with the
development to be able to cater for both NGA and provincial legislation is a key
smoking and non-smoking areas or accept strength of the NGB.
the risk of patrons that want to smoke The NGB has the authority and ability to
abandoning them and thus forfeiting revenue. monitor Gambling Sector Performance and
analyse trends in market share and market
The NGB will monitor this risk through its conduct and access international gambling
oversight of compliance by operators, as well information. This information is vital for the
as through constant analysis of gambling government to be constantly aware of the
sector performance reports. status of the industry, and to be able to make
informed projections for future planning of
Legal governmental priorities. It is also critical for
the assessment of the state and progress of
The law regarding the legalised modes of transformation in the industry.
gambling is clear. However, the application of
the NGA has identified various challenges. Gambling is a legal activity in South Africa. To
There is also a need to address the ensure that the public is made aware of the
misalignment between the application of risks and socio-economic impact of
national and provincial legislation. Currently, gambling, as well as what is legal and what is
there is an expectation that all provincial not, the NGB can conduct broad-based public
legislation is drafted to ensure alignment with education and awareness campaigns, both
the NGA. However, it is within the nature of on its own and in collaboration with external
legislation that while there may be agreement stakeholders.
on what law states, there can often be
disagreement on how to interpret what the The NGB is able to maximise its success
law says. As a result, this can lead to through relationships with key stakeholders,
inconsistency in the application of gambling and in various instances, the NGB has
laws, in the absence of clear norms and entered into Memoranda of Understanding,
standards to ensure uniformity in approach which enable the NGB to collaborate with
from province to province. other entities on matters of common interest.
7.4. SWOT analysis The NGB is the only entity in the country that
has a legal mandate to establish and
Strengths maintain National Registers, including the
NCEMS, which is a revenue generator.
The NGB is empowered by the NGA to carry
out its mandate. The NGA is the national Weaknesses
legislation governing the regulation of the
gambling industry, and it dictates how Despite the existence of empowering
licensing is to be conducted by provinces. legislation, the NGA has limitations that
Provincial legislation thus exists only to hinder the conducting of enforcement
support the NGA, but cannot conflict with it. activities.
Page 23 of 59National Gambling Board
Annual Performance Plan 2021-2024 FY
The NGB has also identified that while it does Threats
provide broad-based public education and
awareness campaigns, these do not reach a There is a lack of uniformity in the
sufficient percentage of the intended target implementation of the NGA by PLAs due to
market, and the consequence of this is that concurrent legislative competence, which
the mandate of the NGB is not communicated brings about anomalies.
effectively to the public.
Due to delays in amending the national
Opportunities regulatory framework, lacunae in the law are
being exploited due to regulatory uncertainty,
The NGB has also identified various i.e. betting on the outcomes of lotteries.
opportunities. If the NGB can develop,
implement and enforce national gambling Combating illegal gambling is also a
industry norms and standards, this would challenge for the NGB due to the
bring about much-needed uniformity in the mushrooming of illegal gambling activities
application of applicable legislative prescripts across the country. A further challenge is the
and would ensure the implementation of lack of prosecution of illegal gambling
industry-related best practice. operators due to illegal gambling not having
been viewed as a high priority crime by law
Repositioning of the NGB and a substantive enforcement agencies.
review of the NGA would enable the
conceptualisation of better approaches to the 7.5. TOWS analysis
regulation of betting and more cost-effective
resolution of unlawful winnings. This also The NGB can combine its strengths with its
provides an opportunity for the establishment opportunities in various ways. Through its
of an ad-hoc National Gambling Tribunal to relationships with PLAs, it seeks to
speedily resolve complaints that may arise implement compliance measures for PLAs to
between the punters and gambling operators. achieve effective regulation.
The NGB is also able to leverage the In execution of its mandate, the NGB will
legislative authority of other regulators and leverage off the legislative authority of
collaborate on matters of common interest to stakeholders through collaborative initiatives
maximise achievement of the objectives of to embark on broad-based public education
the NGB. and awareness campaigns in provinces. The
NGB plans to improve its monitoring
There is also the opportunity for the NGB to capability by extending NCEMS to other
embrace rapid changes in technology to modes of gambling.
better regulate technologically advanced
forms of gambling. Technology can also be The NGB plans to advise the NGPC about
used by the NGB through the extension of developments in the gambling industry which
NCEMS to all legal modes of gambling, may inform legislative and policy
thereby increasing its monitoring capability, development. The NGB will monitor
improved regulation and government Gambling Sector Performance and
accountability for taxes and levies collected. undertake national and international
benchmarks with other jurisdictions to inform
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