Introducing the
Introducing the Mpumalanga Economic Regulator The Mpumalanga Economic Regulator (“MER”) is a newly established public entity, reporting to the Department of Economic Development and Tourism (“DEDT”) in Mpumalanga, charged with the mandate to provide for the regulation of the gambling and liquor industries in the Province and to provide for any other matters connected therewith. The entity was established on 16 October 2017, marking the beginning of a journey as a new provincial public entity, aiming to achieve a cohesive and streamlined approach to gambling and liquor regulation in the Mpumalanga Province. The establishment of the MER is a culmination of a merger between the Mpumalanga Gambling Board (“MGB”) and the Mpumalanga Liquor Authority (“MLA”). Our approach We balance robust industry supervision to prevent and minimise harm associated with the abuse of alcohol and social impacts associated with problem gambling. This facilitates a regulatory environment which enables a diverse and vibrant industry and recognises the social and economic benefits around responsible industry development. We have leveraged on the gambling and liquor regulation to develop holistic approaches to these issues through enhancements in licensing, compliance, education and administration. We take a risk-based and intelligence led approach to ensure our resources are applied where the risk is greatest and to minimise the burden on responsible industry. We engage with stakeholders to appreciate current and emerging issues, to influence policy dialogue and to encourage positive compliance behaviours and best practice within the industries.
We are committed to ethical principles of honesty, transparency, integrity, non-discrimination, respect for human dignity, professionalism and accountability. We are accountable to our stakeholders for ensuring that the entity’s business is conducted in accordance with the highest standards of corporate governance, as well as ethical and moral behaviours. SPECIAL FEATURE We continuously monitor and review the regulatory environment for opportunities to improve regulatory efficiencies and effective enforcement of applicable legislation, as well as minimising harm caused by problem gambling and the abuse of alcohol. There are fundamental reforms on both the gambling and liquor regulation underway. A snapshot of the regulatory environment in Mpumalanga • Since 1994, South Africans have begun to enjoy newfound freedom to participate in all social spheres, including the age-old recreational activity, gambling. By legalising this form of entertainment, government ensured a decrease in criminality and clandestine behaviour that existed prior to the legislation of the sector. • Mpumalanga was the first province to establish a gambling regulator in South Africa, post the legalisation of gambling in 1994; and the first to introduce the legalised gambling in South Africa, i.e. casinos and limited payout machines (“LPMs”). • The MER and predecessor entities introduced various economic growth projects in the gambling industry; 3 licensed casinos and the fourth casino license which is still being considered, 2 route operators linked to 213 site operators, 8 bingo operators, 4 independent site operator licences, 37 betting outlets and 1 totalisator operator linked to 27 branches/agencies. • The industry acts as a catalyst to create a thriving urban hub around it, which includes malls, hotels and recreation facilities. Jobs are created, new enterprises emerge, and inevitably, other investors are attracted to the region. This type of symbiotic development of infrastructure works hand in hand with the tourism sector, contributing to the influx of visitors to a region. Chief Executive Officer: Bheki Mlambo • In addition, industry operators are liable to pay levies and taxes, which contribute enormously to government’s social development commitments. The MER takes responsibility for ensuring that these finances are accurately tallied and collected. • On 01 April 2016, the MLA was de-linked from the DEDT, to become a stand-alone public entity, until the merger in October 2017. In terms of liquor licences, the entity and its predecessor entities has granted approximately 6000 liquor licences. • The entity is incredibly active in promoting the safe and responsible use of gambling and liquor as a form of entertainment. It’s no secret that gambling and liquor can become habit-forming and have the potential to affect not only families and their livelihoods, but the economy of a region negatively, which is something the MER takes very seriously. • It is the board’s mandate to adopt an honest and open policy when it comes to the potential negative side of these two industries, by educating people of all cultures and socio-economic backgrounds to gamble responsibly and drink responsibly.
