19 Sep 2024

Gambling Authority recently awarded the first ever betting and Limited Payout Machines (LPMs) licences in Botswana, marking a new chapter in the journey toward developing a dynamic and inclusive gambling industry.

The authority’s board chairperson, Mr Marvin Torto said at a media engagement  in Gaborone on Tuesday, that the licences were granted following publication of the Request for Applications (RFAs) for Bookmaker and Totalisator (Betting) licences on June 5, 2023.

Mr Torto said the licences were a crucial part of the authority’s strategy to diversify the gambling sector and create opportunities for Batswana to actively participate in and benefit from the value chain of the rapidly growing industry. 

In line with the Gambling Act of 2012, Mr Torto said, the entire licensing process was conducted with transparency and inclusivity.

“We opened the door for public participation, feedback, and engagement. Draft RFAs were published to gather public comments, and we held compulsory applicant conferences which attracted an impressive 240 representatives from 77 companies,” he said  adding that such level of engagement was testament to the importance and growth of the gambling sector in Botswana as well as the authority’s commitment to a fair and transparent process.

Mr Torto said that the authority received 16 applications for Betting and 16 for LPM licences which after investigation and evaluation process that included public inspections and public hearings, 10 companies were granted betting licences while six got LPM licences.

Notably, he said the aggregate shareholding by Batswana in all the 16 companies granted licences was 72 per cent He added that 10 out of the 16 companies were majority citizen-owned, with over 80 per cent in the hands of Batswana.

He reiterated that the citizen ownership was a clear demonstration of how the industry was poised to provide substantial economic benefits to the entire nation. Worth noting, Mr Torto said, a route operator (wholesale model) was a licensed entity responsible for installing, maintaining, and operating gambling machines such as LPMs, across various approved locations.

These operators manage multiple venues, ensuring that the machines are compliant with regulatory standards and are properly monitored, Mr Torto said. 

He further noted that an independent site operator was a licensed business that host gambling machines at their own premises, such as bars, restaurants or entertainment centers but did not manage or own the machines themselves.

Instead, he said they collaborated with route operators to provide them with their venue and ensure adherence to all legal and operational requirements. Mr Torto said the awarded licences would result in the establishment of over 200 gambling sites across the country, and Batswana should endeavor to approach the companies awarded the licences for opportunities to benefit from the route or wholesale model.

“These sites will largely be citizen-owned, with a substantial share of the revenue share of 40 per cent accruing to Batswana. These establishments will operate within various local entertainment venues, such as bars, restaurants, guest houses and lodges, thus embedding economic opportunities directly into the local communities,” he said.

Equally important, he said the licensed companies had committed to creating 2 017 direct and meaningful jobs for Batswana, with a special focus on women, youth, and people with disabilities.

In addition to employment, he said the companies would source majority of goods and services from local suppliers, and invest in various corporate social investment initiatives.

Initiatives will focus on critical areas such as infrastructure development, sports, healthcare, and educational programmes, ensuring that the positive impact of the licences extend far beyond the gambling industry itself, Mr Torto said. 

He encouraged Batswana to seize opportunities presented by the growing gambling industry, by providing suitable venues for hosting gambling machines.

With the recent issuance of licenses for LPMs, Mr Torto said there was a significant demand for secure and compliant venues across the country, urging  Batswana to prepare and take advantage of such opportunities.

Mr Torto said public education campaign on responsible gambling dubbed the Motshameko-O-Phepa had made a significant impact, reaching over 100 villages. Ends