Gambling operators in KwaZulu-Natal are still struggling with the ongoing gambling litigation. The Gambling and Betting Board members in KwaZulu-Natal are particularly concerned regarding the drop in revenue collection while litigation has been going on for some time.
The KZN Gambling and Betting Board met with the Finance Portfolio Committee, where it explained that it expected its revenue collection to continue to decrease. An expected reduction in revenue collection has been predicted to reach an amount of approximately R5 million.
Gambling Litigation Depleting Board's Finances
The situation has been in process since February. In February, the Finance MEC Belinda Scott went to the Pietermaritzburg high court and applied to overturn a number of gambling licenses that had already been granted to bingo hall operators.
The operators had applied for and received the licenses in good faith, and found themselves in the middle of gambling litigation that has continued for months. The Gambling and Betting Board has noted that with the lengthy litigation, its financial resources are being depleted as the legal expenses pile up.
Peter Miller, a member of the board, said that it is felt that lawyers had been "ripping off the board," helping to drain the board of their much needed financial resources. Miller further noted that he did not want to go into any of the details of the already complicated case when the Finance MEC, Belinda Scott was not there. The board itself did not initiate the litigation, which originated in the Finance Department. A new board was created in August.
To add to the stresses surrounding the litigation, the Finance MEC has recently fired nine members of the board. These board members were said to have granted licenses after having met secretly. In addition to this, the licensing and registration unit had not managed to meet its targets.
Bingo Hall Closed in Mall
In October, Galaxy Bingo, which was operating in the Southcoast Mall, was closed. The bingo hall had to retrench 67 staff members. At this time it is unclear as to whether these jobs will become available again.
In February this year, the People's Forum Against EBTs joined forces with the MEC for Finance, Belinda Scott, along with Premier Senzo Mchunu, in order to work towards overturning the licenses of those bingo halls in KwaZulu-Natal, with a special focus on those that were located in shopping malls.