The Gamble Act is a law in Zimbabwe that regulates gambling activities in the country. It was enacted in 1976 and has undergone various amendments over the years. The act provides the legal framework for licensing and controlling casinos, betting shops, lotteries and other games of chance in Zimbabwe.
The Gamble Act aims to protect citizens from problem gambling and ensure that gambling activities are conducted in a fair and transparent manner. It also generates revenue for the government through licensing fees and taxes levied on gambling operators.
Some key questions answered in this article include:
What are the main provisions of the Gamble Act?
The Gamble Act prohibits gambling activities in Zimbabwe except in cases where a license has been acquired. The regulatory body responsible for issuing licenses under this act is the Lotteries and Gaming Board.
The act has provisions relating to the following:
- Licensing requirements for casinos, betting shops, lotteries, amusement machines and other games of chance
- Rules and regulations for conducting permitted gambling activities
- Offences and penalties related to illegal gambling
- Establishment of the Lotteries and Gaming Board to regulate the industry
- Taxation of gambling operators
It provides guidelines on responsible gambling practices and aims to clamp down on unlicensed gambling activities. The act also establishes the Gaming Fund which receives taxes and fees paid by license holders.
What are the main objectives of the Gamble Act?
The key objectives of the Gamble Act in Zimbabwe are:
- To regulate and control gambling activities
- To generate revenue for the government through licensing fees and taxes
- To protect citizens from problem gambling
- To ensure transparency and fairness in gambling operations
- To clamp down on illegal and unlicensed gambling activities
- To promote responsible gambling practices
By regulating gambling, the act aims to keep criminal elements out of the industry and prevent gambling from being a source of disorder or corruption. The licensing system and taxation of operators provides revenue for the government. The act also strives to minimize the social impacts of problem gambling.
What types of gambling are regulated under the act?
The Gamble Act provides for the licensing and regulation of the following gambling activities:
- Casinos – Both locals casinos and casino facilities located within hotels are regulated under the act.
- Betting shops – Includes licensing of land-based and online sports betting services.
- National lottery – Regulation of the state-owned lottery.
- Horse racing – Licensing of entities conducting betting on horse races.
- Amusement machines – Covers gaming machines such as slot machines located in casinos, hotels and other venues.
- Promotional competitions – Permitting and regulation of contests, games or schemes to promote goods or services.
The act prohibits unlicensed gambling and provides guidelines on how permitted gambling activities should be conducted. Illicit gambling dens and unregulated online gambling sites are banned under the law.
What are the penalties for violating the Gamble Act?
The Gamble Act contains penalties for individuals or entities that are caught engaging in illegal gambling activities. Key offences and penalties under the act include:
- Engaging in unlicensed gambling – Fine of level 10 or imprisonment for a period up to one year.
- Allowing underage gambling (under 18 years) – Fine not exceeding level 6 or imprisonment not exceeding one year.
- Providing false information to obtain a gambling license – Fine of level 12 or imprisonment up to five years.
- Breach of license conditions – Fine of level 8 or cancellation/suspension of license.
- Manipulation of gambling games/activities – Fine of level 12 or imprisonment up to ten years.
Harsher penalties of up to USD$5,000 fines and five years imprisonment apply for crimes like using forged licenses and permitting premises to be used for illegal gambling activities. The courts are also empowered to order forfeiture of any equipment used for running illegal gambling operations.
History of Gambling Laws in Zimbabwe
Gambling activities have been part of Zimbabwean culture for decades, with early gambling mainly in the form of betting on animal fights and games of chance. However, organized gambling only began in the early 20th century when the first casinos opened.
Here is a brief history of gambling laws in Zimbabwe:
- Early 1900s – First casinos opened, gambling mainly unregulated.
- 1960s – Rapid growth of casinos after UDI by Ian Smith’s government.
- 1976 – Enactment of the Lotteries and Gaming Act which later became the Gamble Act.
- 1982 – Establishment of the Lotteries and Gaming Board.
- 2007 – Amendment of act to include sports betting and online gambling.
- 2015 – High Court ruling to legalize online gambling which had been banned in 2012.
- 2018 – Reduction of gambling taxes from 20% to 15% of gross profits.
The Gamble Act repealed previous colonial-era gambling ordinances. Amendments over the years have seen it updated to cater for new forms of gambling. The act continues to undergo periodic reviews to align it with technological changes and growth of the gambling industry.
Scope and Exemptions under the Gamble Act
The Gamble Act has a wide scope regulating most forms of organized gambling in Zimbabwe. However, certain gambling activities are exempt from the provisions of this act.
Key exemptions include:
- Private lotteries – Small subscription lotteries conducted as fundraising activities are exempt provided the total proceeds do not exceed USD$700.
- Amusement machines in private venues – Gaming machines located in places like bars and hotels are exempted if there are less than three machines.
- Small stakes card games – Private card games played for low stakes are generally exempted from the act.
- Informal betting – Small scale betting between individuals is not subject to this legislation.
Additionally, the Gamble Act does not apply to:
- Games of skill that do not involve betting or monetary prizes.
- Traditional coin tossing games played during festivals and ceremonies.
- Raffles held to raise funds for charities and non-profit organizations.
These exempted activities can however be brought under the act by ministerial order if the need arises. The exemptions aim to allow harmless small scale gambling activities while focusing regulation on organized commercial gambling.
Offences under the Gamble Act
The Gamble Act criminalizes a number of gambling-related activities. The key offences outlined in the act include:
Unlicensed gambling operations
This covers individuals or companies that run gambling activities without acquiring the necessary license. It is an offence to own or operate unlicensed casinos, betting shops, online gambling sites or lotteries. Offenders face fines of up to level 10 or 1 year in jail.
Underage gambling
Permitting individuals below the age of 18 to engage in gambling activities is prohibited. Offenders can be fined up to level 6 or be imprisoned for up to one year.
Providing false information for licensing
Applicants who falsify records or provide misleading information to the licensing board in order to obtain a gambling license commit an offence under this act. They are liable for fines up to level 12 or up to five years in jail.
Breach of license conditions
It is an offence for gambling operators to violate the terms and conditions of licenses granted to them. This may lead to cancellation of licenses or fines not exceeding level 8.
Cheating
The use of fraudulent means, tricks or devices to cheat during gambling games is an offence. Offenders can be fined up to level 12 or jailed for up to ten years.
Permitting illegal gambling
Letting any premise to be used for illegal gambling activities is also an offence under the Gamble Act.
Licensing under the Gamble Act
A key part of Zimbabwe’s gambling regulation framework is the licensing system established under the Gamble Act. All gambling activities must be licensed to be legally conducted.
The Lotteries and Gaming Board serves as the licensing authority responsible for vetting applications and issuing licenses. Licenses are issued based on the suitability of the applicant and premises in line with criteria outlined in the act.
There are different license categories provided for under the Gamble Act including:
- Casino license
- Bookmaker’s license for betting shops
- Totalisator license for horse racing betting
- Amusement machine license
- National lottery license
- Promotional competition license
Each license has specific terms and conditions attached such as limits on number of slot machines and gaming tables for casinos. Licenses are valid for a period of one year and fees range from USD$500 for an amusement machine permit to USD$50 000 for a casino license.
The board has powers to cancel or suspend licenses in the event of serious breaches of the act. Unlicensed gambling establishments are raided and shut down by the police.
The Lotteries and Gaming Board
Overview
The Lotteries and Gaming Board (LGB) is the statutory body mandated to regulate all lotteries and games of chance in Zimbabwe under the Lotteries and Gaming Act (Chapter 10:26).
The LGB was established in 1982 through Statutory Instrument 250 of 1982 and operates under the Ministry of Environment, Climate, Tourism and Hospitality Industry.
Functions and Powers
The key functions and powers of the Lotteries and Gaming Board include:
- Vetting and processing license applications for gambling activities.
- Issuing licenses for casinos, betting shops, lotteries and other gaming activities.
- Formulating rules for the types of games that can be played.
- Setting standards for gaming equipment and gambling venues.
- Carrying out audits and inspections of licensed premises.
- Investigating licensing breaches and imposing penalties.
- Advising the government on policy relating to gambling regulation.
The LGB has powers to suspend or cancel licenses, order forfeiture of equipment and recover outstanding taxes and fees. The board also determines maximum payouts on gambling games.
Revenue Collection
The Lotteries and Gaming Board collects revenue for the government from the gambling industry through:
- Collection of annual licensing fees from operators.
- Levying tax on gambling revenue at a rate of 15% of gross profits.
- Fines imposed for licensing breaches.
This revenue goes into the national fiscus and the Gaming Fund which is used to fund community projects across Zimbabwe.
Administration
The board consists of five members appointed by the Minister of Environment, Climate, Tourism and Hospitality Industry. Members serve for renewable terms of up to five years.
The Chairman heads the Lotteries and Gaming Board. There are also inspectors who monitor and enforce compliance with gambling regulations across the country.
History of the Lotteries and Gaming Board
The Lotteries and Gaming Board has been in existence for over three decades having been established in 1982.
Here is a brief history of the LGB:
- 1982 – Formed through Statutory Instrument 250 of 1982 under the Supervision of Betting Act which was later replaced by the Lotteries and Gaming Act.
- 1990s – Spread of illegal gambling machines leads to a casino boom as operators sought licenses.
- 1999 – Computerization of the licensing system and operations.
- 2012 – Licenses over 50 casinos following legalization of gambling in 2010.
- 2015 – Rolls out money-spinning online gambling licenses.
- 2018 – Revenue collection peaks at USD$27 million due to gambling taxes.
- 2021 – LGB decentralizes licensing to expedite processing of license applications.
Over the years, the LGB has adapted and evolved to remain relevant in face of technological changes and growth of both legal and illegal gambling activities in Zimbabwe. It continues to implement policy reforms to ensure proper regulation of the gambling industry.
Criticisms of the Gamble Act and LGB
While the Gamble Act and the Lotteries and Gaming Board play an important role in regulating gambling, they have also attracted some criticisms over the years.
High license fees
Gambling licensing fees in Zimbabwe are viewed as being exorbitant, hindering the growth of smaller indigenous operators. License fees range from USD$500 to USD$50 000 which is beyond reach for many aspiring local operators.
Tax rate too high
The 15% tax on gross gambling revenue is considered high compared to rates of around 5% in other countries. This has led to resentment amongst some operators.
Bureaucracy and red tape
The process of acquiring gambling licenses is bogged down by red tape and bureaucracy. Licensing can take several months as applications have to pass through multiple bodies.
Inflexible policies and laws
The gambling regulations have struggled to keep up with emerging technologies and new forms of gambling. For example, the law had to be amended to cater for online gambling.
Limiting competition
A limited number of gambling licenses have been issues leading to dominance by a few big players like casinos. Critics argue that this has stifled competition.
Unlicensed gambling persists
Despite strict laws, the LGB has struggled to rein in widespread unlicensed gambling activities across the country indicating a weakness in enforcement mechanisms.
The taxation of gambling in Zimbabwe
Gambling revenue in Zimbabwe is subject to tax under the Gamble Act. This taxation seeks to generate income for the government and also regulates gambling by making operators financially liable.
Some key highlights of gambling taxation in Zimbabwe:
- A gambling tax rate of 15% is levied on gross profits/revenue.
- Casinos and betting companies have to submit monthly tax returns to the Lotteries and Gaming Board.
- Unpaid taxes attract heavy penalties of up to 100% of the outstanding tax.
- Tax is also collected through annual licensing fees paid by operators.
- The LGB may conduct audits on licensees to verify tax records.
- Tax revenue goes to the national treasury and the State Lotteries and Gaming Fund.
In 2021, the gambling industry contributed around USD$27 million to the fiscus from taxes and licensing fees according to LGB annual revenue figures.
While generating significant income, gambling taxes have also attracted criticism for being too high at 15% compared to international benchmarks of around 5%. There have been calls for reviewing the taxes downwards to grow the gambling industry.
Problem gambling concerns in Zimbabwe
A major social concern associated with gambling activities is addiction and problem gambling. As gambling has grown in Zimbabwe, issues of problem gambling have come under scrutiny.
Key concerns around problem gambling in Zimbabwe include:
- Lack of public awareness – Many people lack understanding of gambling addiction as a disorder.
- No treatment facilities – There are no dedicated treatment and counselling facilities for problem gamblers.
- Underage gambling – Weak enforcement of age limits result in adolescents engaging in gambling.
- No self-exclusion option – Gamblers are unable to ban themselves from casinos if they have a problem.
- Access to credit – Casinos allow punters access to cash and loans enabling excessive gambling.
- Lack of research – There is inadequate research into the prevalence and impact of problem gambling in Zimbabwe.
Problem gambling can result in huge social costs including addiction, poverty, domestic violence, suicide and crime. Addressing this requires concerted efforts between government, gambling regulators and public health institutions through prevention, treatment and monitoring initiatives.
Responsible gambling initiatives
Recognizing the need to curb problem gambling, Zimbabwe’s gambling regulators and operators have taken some responsible gambling measures.
Public education initiatives
Casinos and betting companies now display information posters informing customers of gambling addiction symptoms and available help services. Awareness campaigns are also run in the media advising gamblers to play responsibly and set limits.
Self-exclusion option
Some casinos allow problem gamblers to voluntarily ban themselves from gambling activities for set periods of time through a self-exclusion program.
Restriction of credit and loans
Issuing of loans and cash to gamblers has been restricted to prevent punters from betting beyond their means.
Employee training
Casino staff and betting company employees undergo training on how to identify problem gamblers and provide them with guidance on seeking help.
Underage gambling crackdown
The LGB has stepped up enforcement of age limits, leading to the arrest of underage gamblers and prosecution of operators that allow them to play.
Treatment referral programmes
Operators now work with counselling centers to refer identified problem gamblers for professional treatment and therapy.
Online gambling blocks
Banks have assisted in blocking transactions on some unlicensed online gambling sites to curb access to online betting.
While commendable, these responsible gambling measures remain limited in scope and impact. More comprehensive problem gambling management frameworks will need to be implemented with support from policymakers. This includes establishment of rehabilitation facilities specifically tailored for gambling addicts. Ongoing research and monitoring of problem gambling trends is also critical.