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Eastern Cape Business 2016 edition

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A unique guide to business and investment in the Eastern Cape. The 2016 edition of Eastern Cape Business is the ninth issue of this highly successful publication that, since its launch in 2006, has established itself as the premier business and investment guide to the Eastern Cape Province. The Eastern Cape enjoys an abundance of natural and human resources, as well as established industrial infrastructure that drives the economy of the province. This includes three ports, covered extensively in a series of features and interviews in this issue, and two industrial development zones which are home to a wide range of manufacturers and exporters. The 2016 edition includes contributions from the Eastern Cape Development Corporation (ECDC), Mercedes-Benz South Africa, the regional head of Nedbank in the province, as well as an extensive interview with Reuben Zwane, the CEO of the Eastern Cape Gambling & Betting Board and the featured Eastern Cape Businessman of the Year. New for the 2016 edition is a comprehensive 10-page map guide to the province sponsored by Caltex Eastern Cape Marketer. To complement the extensive local, national and international distribution of the print edition of the magazine (15 000 copies), the full content can also be viewed online at www.easterncapebusiness.co.za. Updated information on the Eastern Cape is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.

INTERVIEW online

INTERVIEW online gambling. Currently internet gambling is outlawed, but the legislation provides that we could in fact license interactive gambling. So long as this aspect of gambling is not being licensed then we are currently losing a lot of money in taxes. After all, people like the internet and they are not about to stop going online to gamble. In my opinion, the correct way to deal with the popularity of internet gambling is to regulate the industry. However, in regulating or licensing internet gambling there is also a fear that it may reduce the revenue for investors that have already committed their money to casinos if people started to gamble increasingly from home and spending less time and money in a casino. An additional concern would be the potential loss of jobs and casino income. Would the Eastern Cape be able to serve an international gambling market? Theoretically we most certainly would be able to earn foreign revenue from online gambling. However, because internet gambling is currently illegal in South Africa, the industry continues to lose out on the possibility of drawing in this revenue. In global terms there is no jurisdiction in place governing gambling over the internet, aside from general regulations that exist in terms of the actual bookmaking platform. PEOPLE WHO WOULD NOT OTHERWISE HAVE MONEY OR CAPITAL TO INVEST IN A CASINO CAN AT LEAST, IN A SMALL WAY, PARTAKE IN THE GAMBLING INDUSTRY Do you believe that internet gambling should be allowed? In my own personal view, and speaking with more than 14 years of experience in the industry, I believe we should definitely be considering licensing online gambling. EASTERN CAPE BUSINESS 2016 18

INTERVIEW FOCUS How has the spread of bingo and LPMs helped to empower the local community? There has certainly been transformation within these two categories and we have succeeded in bringing previously disadvantaged individuals into the mainstream economy through our Request for Proposals (RFPs). For instance, we’ve stipulated that in order for an individual to be granted a license their company must have at least 40% of local black ownership and that their ownership should include effective management control. Operators licensed for 1 000 limited payout machines need to ensure that the individual bars and restaurants where they place those machines also require a certain level of black ownership, so this is proving to be a really effective way of starting to transform the industry. In this way, people who would not otherwise have capital to invest in a casino can at least partake in the gambling industry, even if only in a small way. Is there good coaching groundwork in place to assist SMMEs and self-employed individuals working in the industry? We certainly do place a large emphasis on training and, as a result, if you are bringing in partners that were not involved in such structured business before then there must be a structured business training program for them, so we will assist by monitoring their progress for the duration of their license. If an operator has a 15-year license they must provide a training plan for their staff as well as for their directors in order to ensure that they gain an effective understanding of how to operate at a director level, in addition to gaining an understanding of the responsibilities of a director. This training therefore becomes not just about empowering them in respect of where they are in their careers, but also ensuring they have the skills that will enable to to venture out into other businesses as well. I believe this is so critical in order to bring about effective and sustainable change in the Eastern Cape. Are there any other interesting industry developments in the province? We do our best to facilitate the operations of licensees and the industry in general. For instance, you can see THE ECGBB LOOKS AT PROBLEM GAMBLING FROM A RESEARCH PERSPECTIVE After findings and recommendations from a research study on the Prevalence of Gambling amongst Civil Servants commissioned by the Eastern Cape Gambling and Betting Board (ECGBB) in 2013/14, the ECGBB hosted a research seminar on 8 October 2015 in East London, at the Regent hotel, to share their report with various stakeholders. This study was conducted during the 2013/14 financial year and involved a sample of 13 provincial departments across the Eastern Cape Province. This was after an assumption that government employees were or are a “growing breed” within the gambling sector. This notion was based on the fact that government employees make a significant portion of the workforce in the province. Meaning they may be freely accessing the gambling sites to spend more time, either gambling or enjoying the space as gambling is a sub-sector of tourism and entertainment. According to Statistic findings from Statistics SA 2012, 80% of the workforce in the province is comprised of public servants. This means government employees have a disposable income for entertainment as well as gambling and as such they could potentially be vulnerable to excessive and irresponsible gambling behaviour. This further anchored the ECGBB’s assumption. The Prevalence of Gambling amongst Civil Servants findings portray some fundamental challenges that the ECGBB and the Provincial Government Administration have to address. “In working towards the recommendations of this study this seminar will pave way for the recommendations to be made. So that the ECGBB can ensure that its mandate not only ends with ensuring compliance to the rules and regulations, but to ensure that the public is aware of issues underlying problem gambling,” said Luvuyo Tshoko, Manager: Strategic Management Services at the ECGBB. 19 EASTERN CAPE BUSINESS 2016

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