The Business Weekly & Review

New Gambling Authority boss under fire Industry demands to be refunded P55m in unused levies Boardroom brawl linked with fight for GA top post Hardly a month after he was appointed acting CEO of the Gambling Authority, Peter Kesitilwe already finds himself fending off attacks from industry players and members of his executive team in what is widely viewed as a fight for the Authority’s top position and the millions stacked in its responsible gaming account. The Business Weekly & Review has established that Kesitilwe is embroiled in a full blown war with some gaming industry licensees demanding to be reimbursed the millions that they have been charged over the years as responsible gaming levy. [ihc-hide-content ihc_mb_type="show" ihc_mb_who="1,2,3,4" ihc_mb_template="1" ] Industry players are adamant that they deserve to be reimbursed the money, purporting that the Gambling Authority has not been using it for intended purposes. Established by the Gambling Act of 2012 and mandated to regulate and control operations of gambling establishments in Botswana, the Authority is also responsible for ensuring that gambling activities of are carried out in a responsible and sustainable manner. This is in line with the Government of Botswana’s commitment to ensuring that gambling remains a safe and rewarding undertaking for players, consumers and the nation at large. The Business Weekly & Review can reveal that there is a letter written by the gambling industry operators (representative) to the Gambling Authority CEO demanding reimbursement of the 5 percent levies charged on their gross revenue that was intended to be used to rehabilitate addictive gamblers. Kesitilwe has confirmed that the Authority has received such a letter from the Gaming Association of Botswana. “We can confirm that the Authority and casino operators are in constant engagement on various matters, including implementation of the gambling law and performance on licence conditions,” he said in an interview. It is these millions that have reportedly pitted Kesitilwe against some members of his executive team and players in the gaming industry. A cold war erupted after the departure of former CEO, Thuli Johnson, when casino operators began to actively lobby for a specific key member of the executive team at the Gambling Authority to ascend to the top post. This was allegedly after promises were made to the effect that the millions in the responsible gaming levy account would be remitted to operators as the money had been lying idle for years. It is alleged that the particular top executive was promised generous kickbacks in return. However, according to insiders, the plan was scuttled when the Ministry of Trade and Industry announced Kesitilwe as acting CEO, hence the baring of teeth that he faces . The Gambling Authority is mandated by law to collect, from the industry on behalf of the Botswana Government, a gambling levy at the rate of 10 percent and a further 5 percent which the Authority is to use for the sustenance of a responsible gambling programme. The responsible gambling contribution (5 percent), as the levy is called, is to be used for monitoring the social effects of gambling, public education and counselling and rehabilitation of those adversely affected by gambling under the responsible gambling programme. According to the acting CEO, The Authority’s responsible gambling programme is in motion and continuing. In the 2016/17 reporting year, the Authority received a total of P28.6 million in revenue from casino levies (P18.23 million), responsible gambling levies (P9 million) and entrance fees (P1.34 million). The levy funds will be used to finance responsible gambling programmes and other gambling matters in line with the Gambling Act. In an interview with Moruntshi Kemorwale, acting Chief of Staff at the Gambling Authority, it came to light that the Authority has been collecting and putting the funds in interest-bearing accounts and that the balance is currently at P55 million. The Business Weekly & Review wanted to know how much was collected since the levy came into being. Asked if it was true that the Gambling Authority has been stacking up millions through the responsible gaming levy and not using the money, Kesitilwe answered that nothing much could be done in the Authority’s formative years. However, he insisted that a lot has been achieved in recent years as the Authority instituted a baseline survey on the prevalence of excessive and problem gambling in Botswana. Said Kesitilwe: “This was the first-ever comprehensive study to measure the prevalence of problem gambling. The baseline survey indicated that the prevalence of problem gambling in Botswana stands at five percent and is mostly among the youth.” The study also showed that problem gambling differs significantly by district and stratum, which speaks to the need for all interventions to be carried out nationwide. Cities and towns have a higher prevalence 7 percent, compared to urban villages and rural areas with 4 percent and 4.9 percent respectively. But Kesitilwe would not directly comment on allegations that he is facing a possible coup from an unholy coalition of some of his top lieutenants and industry players. “That is a non-issue,” he said. “As the regulator, the Gambling Authority is in constant engagement with industry players and we routinely share ideas on how we can make our industry better. We run a watertight governance system that precludes any mischievous behaviour on the part of our staff members. Should there be any deviation, our systems will immediately kick in.” According to acting CEO, utilisation of the funds is an ongoing process. “The Authority has to-date conducted a nationwide problem gambling baseline research which has informed the crafting of our responsible gambling programme,” he said. “The Authority has been embarking on mass public campaigns across the country to create awareness about the risks of gambling.” They have also procured vehicles for the mass public campaigns in addition to engaging different psychosocial and counselling specialists to attend to those who choose to access the service, he added, emphasising that counselling is not and cannot be made compulsory. The Authority is also currently engaged in two further national research projects on problem gambling. “We are also currently recruiting for the positions of Responsible Gambling Manager, Rehabilitation Officer, and two Public Education Officers, as well as two Counselling Agents,” Kesitilwe explained. “Our responsible gambling programme is hinged on four legs of public education, exclusion and rehabilitation, industry monitoring and industry training. “The first three are ongoing, whereas the Authority is to roll out the training programme in consultation with stakeholders following conclusion of the study on risk factors for problem gambling in December 2022. The Authority will only use citizen trainers or citizen-owned training institutions.” He disclosed that the Gambling Authority is also at a tender stage of the setting up of a responsible gambling self-help portal. [/ihc-hide-content]

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