Mr Fred Owusu Director of Finance La Palm Casino Introduction Industry Definition Regulatory Environment Lottery Regulation Casinos Gaming Machines Amusement Machines Sports Betting and Other Regulation ID: 556852
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Slide1
Overview of the Regulation of Gambling in Ghana
Mr. Fred
Owusu
Director of Finance
La Palm CasinoSlide2
Introduction
Industry Definition
Regulatory Environment
Lottery Regulation
Casinos, Gaming Machines, Amusement Machines, Sports Betting and Other Regulation
Observations:
Lapse – The Gaming Act, 2016
Licensing Model
Absence of Legislative Instrument (LI)
Surveillance System
Employee License
Behaviour Management
Suggestions:
Vendor/Suppliers
Internet Gaming and Mobile Gaming
Training Institution
ConclusionSlide3
Introduction
The
gambling industry has expended across Ghana over the past few years as a result of Government policy to attract gaming tourist and increase tax earnings
.
This policy is indeed in the right direction since the gambling industry bring with it economic benefits to its investors, operators, patrons, employees, vendors and the country
.
This presentation will attempt to explain what gambling is about, highlight its regulatory environment and make some suggestions. Slide4
Industry Definition
Gambling in general term is the betting of money or something of value on an event with an uncertain outcome with the primary aim of winning
additional
money or something of value.
The
outcome of that event may be immediate as in a single roll of dice or longer time as in sports contest or even entire sports season.
What is interesting is that this process call gambling can be identified in almost all the activities a human being undertakes
.
That is to say expectation makes every individual takes action and the result of the action may or may not match that expectation.
The
action to be taken to achieving the expectation requires commitment of resources be it time, money, energy or what have you. When the result matches the expectation there is an excitement otherwise unhappiness.
Gambling is therefore an aspect of human simple behavior that has been translated into a distinct, unique and regulated behavior called game of chance.
A
Game of chance is a package that offers consideration (bets), chance (win or loss) and prize (excitement) and requires minimum skills to participate.
Because it is derived from a human behavior, it can negatively affect an individual who participates and is unable to control his/her level of participation.
Games of Chance generally can be defined to include lotteries, casinos, gaming machines, amusement machines, sports betting, bingo and others.
Having
attempted the definition of gambling, let us now look at how it has been regulated in
Ghana.Slide5
Regulatory Environment
Ghana has over the years known and developed gambling in two (2) many categories:
lottery
one branch and all other games of chance as another branch.Slide6
Lottery Regulation
In 1960, the Lotto and Betting Act 94 was passed into law to start lottery in Ghana with the aim of raising revenue to support the development of the country. Over fifty years or so lotto was operated and managed by Department of National Lotteries with the legal monopoly in the organization of lotteries in Ghana. In 2006, National Lotto Act 722 was passed to establish National Lotto Authority to take over from a public servant institution into a body that regulate, supervise, conduct and manage National Lotto.
It is worth mentioning that in between time private lotto operators came into being but the passage of National Lotto Act 722, the National Lotto Authority in 2007 took over the machines and equipment used by private lotto operators in conducting lottery business since the law made their activity illegal.
The law maintained the legal monopoly in the organization of lotteries in Ghana and introduced private participation by licensed Lotto Marketing companies to basically buy and sell lotto coupons for commission.
The regulation of this branch of gambling is being conducted and regulated by the same body. There is no history or record to suggest that the arrangement has been harmful to the gambling industry but we can all agree that competition serves the society better.Slide7
Casinos, Gaming Machines, Amusement Machines, Sports Betting and Other Regulation
The other games of chance, on the other hand, had been regulated under Lotteries and Betting Act 1960 (Act 31); The Football Pools Authority Act 1961 (Act78); The Gambling Machines Decree, 1973 (
NRCD
174; and Casino Licensing Decree, 1975 (
NRCD
320) with an oversight responsibility from the Ministry of Interior.
Gaming Act, 2006, ACT 721 was passed and gazette in December, 2006 to bring various laws into a single one to strengthen the gambling industry.
Following the passage of The Gaming Act, 2006 a Gaming Commission under the Ministry of Interior was established to regulate, control, monitor and supervise the operations of games of chance in the country and more important serve as an advisory body to Government and the public on matters pertaining to games of chance.
It is important to note that the law explicitly excluded lottery in its definition of games of chance. This is believed to be a matter following tradition and give the needed attention to the other games of chance if the entire gambling industry were to be developed to achieve its full potentials, in terms of tourist attraction, tax revenues, return on investment and employments.
Preceding the Gaming Act, 2006, operators and patrons were more or less self regulated. The Gaming Act has brought a sense of relief to the industry players because being regulated properly was going to accomplish the public policy objective of preventing money laundering, cheating, embezzlement and other unsavory activities that may hamper the growth of the industry.Slide8
OBSERVATIONS
Lapse - The Gaming Act, 2006 still did not capture some aspects of the gambling industry besides lottery which stands on its own. For example there is no direct provision on online betting and sports betting. It may be said that it was not anticipated at the time the law was made. In the current era of technological advancement, the gambling industry has become very dynamic. It is therefore paramount to have a legal frame work that could be amended in due course as and when new trends emerge.
Licensing Model – The Gaming Act, 2006 provides for open wide licensing model whereby there is no limit as to the number of operators. The ultimate objective of any regulatory system is to ensure compliance. Even though the gambling industry has been with us for a long time we can still say that it is very young in terms of growth and development. Competition is health in any industry but we can all agree that too many competitors who are not properly regulated can be distractive to its own industry. Until the regulatory system becomes very robust to contain un limited number of operators the restrictive model should be considered. So far we can count 20 casinos, 10 route operators and 15 sports betting and still counting.
Mapping could also help in locating gambling facilities to promote health competition and ensure the survival of all operators. It should be recognized that gambling is not an essential commodity and so its patrons in terms of numbers are somehow limited. Any additional facility comes in to share the same numbers and that affect the potential revenues of operators.
Slide9
OBSERVATIONS
Absence
of Legislative Instrument (LI) – this is the law needed to give flesh to the Gaming Act, 2006, Act 72. In recent past Stakeholders have had the opportunity to make contribution to the content of the draft and anticipate that it will be fined toned and come into effect in the nearest future. Its importance need not to be over emphasized at this forum since we all know the extent it will help both the operators and the regulator in playing their respective roles in the gambling industry. It will give the specific do and don’ts and in the event of violation the enforcement process and the applicable sanctions. It will also help to avoid the ambiguities sometimes encountered by the regulator in resolving matters between operators and patrons.
Surveillance System - The Gaming Act, 2006 in its present form and framework did not include some set of minimal requirement for surveillance systems for a gaming facility. An internal monitoring system backed by surveillance equipment is definitely a plus for the supervision of the operations in the gambling industry. A mandatory requirement in this regard will bring the operations to high standards and compliance.
Employee License- The Gaming Act, 2006 is silent on employee license. It could have been requires that a person who want to work in a gambling house may have to obtain a license from the regulator. The regulator therefore gets to opportunity to investigate a applicant and issues a license as a proof of good character, honesty and integrity. This could help to keep the gambling industry from organized crime.
Behavior Management – As indicated earlier in this presentation, gambling is human behavior related. It is therefore important that a system
of support is established through the regulator in collaboration with operators to facilitate individuals who may be affected negatively by gambling. Slide10
SUGGESTIONS
It is very
important that the legislators make laws to cover following areas in the gambling industry in the nearest future to empower the regulator to perform effectively.
Vendor/Suppliers - Ghana is not yet a supplier of gaming equipment and accessories. It is however necessary to put in place a legal framework to meet the situation ahead of time.
Internet gaming and mobile gaming - these products have already found themselves in the gaming market. The future may even also see locally developed gambling software.
Training Institution – The gambling industry has come to stay and already given profession to those who have joined. It will be recommendable to see in the nearest future the establishment of some institution to conduct professional training for the industry players.Slide11
CONCLUSION
The gambling industry looks promising and can develop its full potentials if the regulatory frame work improves to support the industry players. The gambling industry is a branch of the tourism and entertainment and therefore policy makers should be guided in that direction. With the exception of lottery, it is fully financed by the private sector and should there be supported with friendly taxation policies and possibly support it with tourism development fund.