ANNUAL REPORTS

It is with pleasure that I present the Western Cape Gambling and Racing Board’s annual report for the 2023/2024 reporting period. The WCGRB was incorporated with the promulgation of the Western Cape Gambling and Racing Act, Act 4 of 1996. In terms of Schedule 3C of the PFMA, the WCGRB is a provincial public entity.

The WCGRB’s prime mandate, as legislated, is to regulate the gambling industry in the Western Cape. Its ancillary mandate includes contributing to the economy of the Western Cape in an innovative and socially responsible manner.

The gambling industry has experienced significant growth in gross gambling revenue during the 31 March 2024 financial year. For the 31 March 2024 financial year, the Western Cape Gambling and Racing Board has collected gambling taxes and levies in the amount of R1,5 billion.

The regulation of gambling is mainly achieved through the licensing of suitable, fit-for-purpose persons and entities to conduct gambling operations in the Province and to ensure that the gambling industry complies with national and provincial gambling legislation. Through the licensing process, the Board unlocks economic opportunities while it gives effect to economic transformation.

The Board, as Regulator and licensing authority, is legally mandated to enforce the principles of B-BBEE in the industry it regulates.

In addition to the B-BBEE objectives towards transformation, licence holders made various commitments towards Corporate Social Investment in the different regions. The WCGRB continues to comply with the judgement on B-BBEE (Tsogo Sun Caledon (Pty) Ltd and Others v Western Cape Gambling and Racing Board and Another (Case no 89/2021) [2022] ZASCA 102 (24 June 2022) and has developed a policy for the Western Cape Gambling industry which is being rolled out to the gambling industry.

The WCGRB is pleased to report that the industry contributed R30,7 million towards CSI programmes for the reporting period.

The legislated number of Board Members is seven non-executive members. As a collective, the seven members are the WCGRB’s Accounting Authority. The quorum for a Board meeting is five members. During the year under review, the WCGRB had seven appointed members and accordingly was fully constituted.

The Ministry currently employs the practice of appointing Board members for a term of four years. This results in continuity and provides Board Members with the time to become proficient in their functions at the WCGRB.

The WGRB’s personnel structure has remained constant for at least the last 15 years. In that same time, the gambling industry has evolved and grown exponentially. This expansion is currently taxing the WCGRB’s resources to optimally achieve its functions and meet the expectations of licence holders.

The WCGRB appointed a service provider to assess the WCGRB’s structure and the resources needed to effectively service its mandate. This exercise has been completed and approved by the WCGRB Board, but the WCGRB would need the financial resources to fund the implementation of the recommendations.

The WCGRB does not have the authority to increase its revenue stream without the approval of the relevant Minister as all financially affected decisions are subject to ministerial budget approval. The WCGRB’s revenue streams are dictated by legislation which the WCGRB has no authority to amend and consequently becomes dependent on the Western Cape Government to amend legislation.

In a recent WCPT public entity review, it was found that the WCGRB’s remuneration for senior staff were amongst the lowest across provincial public entities. In addition, compared to the other South African Gambling Regulatory Boards, the remuneration structure is lower than most of them. This places the WCGRB at a disadvantage and risks losing its key employees to other entities.

The WCGRB has taken possession of its newly acquired office accommodation at 24 Fairway Close and is currently in the process of acquiring a suitably qualified project manager to manage the process for the WCGRB for the refurbishment and fit-out of its building. Notwithstanding the challenges, the WCGRB has delivered on its mandate.

The WCGRB has achieved a clean audit outcome and achieved 74% of its performance indicators.

Medium Term Goals

The process for rolling out type B LPMs is well underway and the rollout should commence by the third quarter of the 2024/25 fiscal year. In addition, the WCGRB will be reviewing and planning its roll-out of type C and type D LPMs as well as Bingo. Not only would this have a marginal effect on the WCGRB’s revenue stream as well as taxes for the WCG Fiscus, but also give heed to the request by the industry for these legislated offerings to be made available.

In all of this, the WCGRB will pay extreme attention to the protection of society from the over-stimulation of gambling, a fair and viable gambling industry in the Western Cape Province, economic empowerment of the historically disadvantaged and the promotion of economic growth, development and employment.

The enhancement of responsible gambling measures in the Western Cape gambling industry is receiving focused attention by the WCGRB with research being conducted in this regard as well as policies and plans having been developed and being implemented throughout the industry in a phased approach.

During the course of the 2024/5 fiscal year, the WCGRB will develop its Strategic Plan for the period 2025 - 2030.

Acknowledgments

I hereby acknowledge and thank the Provincial Minister Mireille Wenger for her invaluable support and understanding of the WCGRB, the WCPT, the SCOF, and the PAC for their support and guidance, fellow Board members, the WCGRB Audit and Risk Committee for their oversight and direction in the achievement of the mandate of the Board and the WCGRB executive and employees for the efficient execution of their duties notwithstanding the complexities and impediments brought about by inadequate resources. Their efforts are recognised and gratefully appreciated.

Mr C Bassuday

Chairperson of the Board