The gaming industry is now not simple entertainment but has emerged out to be a serious economic activity and major source of government revenue and job creation.
Director General of GBT, Mr Abbas Tarimba
The introduction of casino gaming activities in Tanzania has created jobs and tax revenue to the central government and local authorities. Casinos, for example, require intensive labour including security guards, technical and gaming staff.
Gaming is gaining popularity among politicians and other consumers in general around the world. The Gaming Board of Tanzania (GBT) Director General, Mr Abbas Tarimba, told a news conference in Dar es Salaam recently that the gaming industry was growing fast and making significant contribution to the economy.
He said casinos have been accounting for 10 per cent of the GBT net profit and annual dividends to the government will reach 1bn/- in four years. For example more than 1.2tri/- changed hands in the gaming industry during the financial year 2011/2012, with the government ending up earning 528m/- in dividends from the GBT.
The amount is over 40 per cent of the 362m/- disbursed in the previous fiscal year. The GBT had in place a new corporate plan for 2013 that will, among other things, enable it to introduce electronic gaming through internet and mobile phones. The e-gaming would not only help in coping with the global technological changes but also hook many people into gaming activities.
The Finance Minister Dr William Mgimwa said GBT’s contribution to the government coffers and the clean financial accounts were issues that needed to be emulated by other public enterprises. He, however, warned the board and management of GBT to be cautious against licensing investors whose source of funds are not known to avoid cases of money laundering.
It is understood that there are a number of potential investors who want to invest in casinos and gaming industry as a whole. The GBT should be diligent enough to scrutinize the investors’ source funding to avoid dirty money. According to GBT, gambling should be for leisure and entertainment.
Although problem gambling has not been a concern amongst the people, it is reasonable to assume that as the gaming industry grows and advances, it brings about both good and adverse impacts. In its endeavour to promote responsible gambling the GBT ensures greater public awareness on the problems through education.
Some individuals can become addicted to gambling and this can put such people in a financial and social related crisis. Some people, and often a small proportion referred to as “problem gamblers” gamble in a way which compromises, disrupts or damages family, personal or recreational pursuits. Most of problem gamblers commit illegal acts to pursue their gambling.
The biggest negative effect of gambling is loss of money. If someone has a gambling problem and loses a big amount of money, this can result in debt, asset loss, bankruptcy, fraud, theft, job loss or poor performance at work, stress and even suicide.
The GBT also promotes a coordinated approach so that various gaming stake holders play a role in addressing the issue of problem gambling and improve the understanding of social impact of gambling. Furthermore, the GBT has recently embarked on research to establish an optimal number and size of casinos and slots operations which are proportional to the economy and population of the Dar es Salaam city.
“The findings will be useful for both the regulator and investors in the planning process in order to distribute the services evenly,” remarked Ms Zena Athuman, an official with the GBT in a recent interview with the Business Standard. She said six out of eight casinos present in the country are located in Dar es Salaam particularly in the central business district, the situation that might be denying such services to the people in the outskirt of the city.
She said gaming activities especially casino and slots in the Dar es Salaam city are growing fast thus calling for board’s intervention to operate the services in an orderly manner consistent with the size of the economy and population to avoid adverse social economic impacts.
Thus she said the study will provide appropriate basis for the regulator to establish suitable regulatory guidance and standpoint in regards to licensing of casinos and slots operation in Dar es Salaam. The study to be carried by an independent researcher on behalf of the Gaming Board is expected to be ready before end of August, this year.
By SEBASTIAN MRINDOKO, Tanzania Daily News
