06 Mar 2022

Negotiations on issuance of the National Lottery license have been suspended, Parliament has heard.

Investment, trade and industry minister, Mr Mmusi Kgafela, explained in response to a parliamentary question recently that the suspension followed failure of negotiations with the preferred applicant, Growmine (Pty) Limited.

Minister Kgafela said that the Gambling Authority then terminated the negotiations and in their stead appointed Ithuba Botswana to commence negotiations with them.

He added that Growmine then lodged an appeal with the trade ministry as per Section 48 (1) of the Gambling Act.

“The appeal is currently on-going as the parties have made their submissions for determination of the matter.

Meanwhile, negotiations for the National Lottery Licence remain suspended whilst the appeal is being considered,” he said, adding issuance of the National Lottery Licence would be informed by the outcome of the appeal and conclusion of the negotiations.

He said all applicants to the National Lottery had citizen investors and were proactive with citizen participants, as suppliers and employees.

He said the two companies who were chosen as the preferred and reserve bidder both had citizen participation.

“Citizens of Botswana will benefit from shareholding, supply contracts, re-selling and employment. As players, Batswana stand a chance to win weekly prizes. The National Lottery Distribution Fund is a fund set up to fund charities, sport development and recreation and the arts and culture activities as established by the Gambling Act. These are all various means through which Batswana will benefit from the National Lottery.”

Further, Mr Kgafela indicated that the process for issuing licences required the Gambling Authority to advertise for the application of a particular licence type.

“The authority has started the process of issuing a betting licence(s) and an advert in this regard will be issued in the second quarter of 2022,” he said.

On the other hand, the minister explained that amusement machines were not classified as gambling machines and devices as prescribed in Part XIV of the Gambling Act.

“We have through the Gambling Authority, followed up on tips of illegal machines together with the Botswana Police, and in some instances confiscated the machines,” he added.
Parliament has also heard that subventions received from government since the Gambling Authority’s inception in 2014 amounted to P175  939 318.

Mr Kgafela added that the authority had over its life undertaken a total of four fact finding and benchmarking missions which included preparation for National Lottery and draft and issue request for applications.

“The Authority visited countries in SADC being Malawi, Mauritius and South Africa who were either in the process of licensing or operating a National Lottery. The purpose was to understand the processes undertaken and the operations in those countries and understand the pitfalls and challenges faced.”

Again, he said the authority also undertook a trip to Malta in 2019 to consider evaluating the economic benefits of online gaming and understand the regulatory nuances and what was needed to introduce online gaming.

He indicated that the costs incurred during the four trips amounted to P209 426.37 spent in Malawi in 2016/2017, P326 668.53 in Mauritius in 2016/2017, South Africa P17 675 in 2018/2019 and P14 576.18 in Malta in 2018/2019 undertaken as extension from and back to the United Kingdom.

Kanye North MP, Mr Thapelo Letsholo had asked him for  update on the country’s gaming industry, particularly delays in its licensing and how citizens would benefit in the lottery as business proprietors and as players.

The MP also wanted to know when sport betting licences would be issued, how much government had spent on the Gambling Authority since its establishment as well as the number of fact finding and benchmarking missions. Ends