Gambling Authority is concerned by low participation of Batswana in newly introduced Limited Payouts Machines (LPM) gambling system that is meant to target small businessmen.
The authority’s Chief of Staff, Moruntshi Kemorwale, says they have set aside 1 900 licenses for locals to apply for the LPM system with the closing date coming in two weeks time.
The LPM, Kemorwale says, is meant for small businessmen as it does not require a lot of money for betting. “This is a system where the maximum betting is P10 with P3 000 as maximum jackpot. This is meant even for low income or those who are new in gambling not to spend a lot in machines without knowing how they work,” he said, further explaining that the application is open to all bar owners, hotels and restaurants.
He says foreigners are only allowed to take part provided there is proof of citizen participation. The Chief of Staff says there are models in place for people to acquire their desired licenses. “There is a Gambling Establishment Site Operator model which allows a person to apply for not more than five (5) Gambling Establishment Licences with a maximum of five (5) gambling machines per site,” he said.
The other type, he says, is a Gambling Establishment Independent Site Operator model that allows an applicant access to a minimum of five (5) Gambling Establishment Licences and to operate between five (5) and fifteen (15) gambling machines per site or any other type of gaming and gambling approved by the Authority.
“A Gambling Establishment Route Operator licence shall allow a corporate entity to manage the whole of the facilities of a Gambling Establishment through a service level agreement to be concluded with either a Gambling Establishment Site Operator or Gambling Establishment Independent Site Operator. The operator shall operate its Gambling Establishment Site on a profit-sharing business arrangement of 60:40 ratio (60% Gambling Establishment Route Operator and 40% Gambling Establishment Site Operator) and such agreement will be subject to approval by the Authority before commencement of operations,” he explained.
Kemorwale however said despite the low turnout on the LPM, the betting licence is on demand as it targets big business establishments. According to the Authority’s Spokesperson, the gambling industry in Botswana continues to be dominated by big sharks, whilst SMMEs are left behind in the lucrative gambling industry, estimated at 500 Billion Dollars internationally.
