Limpopo Gambling Board Final

The licensing of LPM sites and the opening of Bookmaker sites contributed to the creation of employment; however, the number of employees in the gambling industry in Limpopo Province decreased by 18.40%, from 3858 employees to 3148, due to site closures, downsizing and employee turnover. The Limpopo Gambling Board was delisted as a Supervisory Body following the amendment of the FICA; however, the Financial Intelligence Centre committed to enter into a new Memorandum of Understanding with the LGB for the purpose of collaborating on FICA Inspections, FICA awareness campaigns, registration of licensees and monitoring issues of beneficial ownership. On 24 February 2023, the Financial Action Task Force, after the mutual evaluation conducted in 2019, placed South Africa on the grey list because the country did not have sufficient mechanisms in place to monitor and combat money laundering and terrorism financing activities. This was despite the country having implemented some measures by the end of December 2022 by promulgating the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act and the Protection of Constitutional Democracy Against Terrorism and Related Activities Amendment Act. The focus areas for the Entity to assist the FIC to get the country off the FATF grey list related to: a) the improvement of risk-based supervision of licensees and applying effective, proportionate, and effective sanctions for non-compliance with FICA; and b) the assurance that market entry requirements addressed Beneficial Ownership concerns raised by the FATF and the application of sanctions for breaches of violations to Beneficiary Ownership obligations by legal persons. As the Entity continued to regulate and monitor Licensees, it was apparent that most Licensees were committed to maintaining a good compliance culture in line with the relevant legislation, licence conditions and internal control procedures. The Entity takes this opportunity to appreciate the efforts of the Licensees and looks forward to achieving a fully compliant licensed gambling industry in the province. The additional mandate of the Entity is to investigate and combat illegal gambling activities through its Law Enforcement Business Unit. The Entity conducted this through collaboration with the SAPS, NPA and other Government Departments. In addition to the investigation of illegal gambling activities, the Entity conducted crime awareness campaigns with the entire community of Limpopo in line with the principles of community policing as a required policing model in South Africa. The Entity investigated 274 illegal gambling cases during the year, as compared to a total of 59 cases that were investigated during the previous 2021/22 Financial Year. A total of 143 illegal gambling operators were arrested during the investigations that were conducted as compared with 25 arrests that were effected the previous year. There was a 568% improvement in the number of arrests that were effected which signified an improvement in the interventions in dealing with illegal gambling. Admission of guilt fines to the amount of R99 100 were paid within various police stations around Limpopo Province. Investigations also resulted in the confiscation of 477 illegal gambling machines in the form of Chinese Roulettes from various spaza shops and taverns throughout the province and the confiscated exhibits were forfeited to LGB. The Entity destroyed 382 illegal gambling machines as compared to 57 illegal machines that were destroyed during the previous year. The remaining 94

LIMPOPO GAMBLING BOARD

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