It is important to clarify from the first instance how policy making should proceed both as a way of assessing the existing arrangements and as a tool for devising new approaches.716 As it stands in South Africa, interactive gambling is prohibited and therefore, gambling online is illegal. After having looked at how the regulation process has unfolded since the enactment of the 2008 Amendment Act five years ago, it is likely that a different policy perspective could be considered when making the decision on whether to regulate or prohibit interactive gambling by promulgating the 2008 Amendment Act. According to Australia‘s Gambling Industries,717 there are a number of general steps that assist good policy making, such as, specifying the clear objectives, considering alternative measures and using transparent and consultative process; as well as considering a detailed policy.718 There are 13 steps to good policy, namely;719
1. Identifying the problem and rationale, (e.g. what is the problem that needs to be addressed and what is its risk; why is government action needed to correct the problem; what are the objectives of government action; and what are the risks and problems of government action?);
2. The exact objectives ,
3. The risk of government failure too high? (If yes, then no policy action can be taken, however, if no,
4. The government can choose a possible policy option, (e.g. what are the options for policy, i.e. the different types of regulation, including self-regulation; tax measures;
financial assistance; and information provision);
5. Then they can make an impact analysis,
6. Then follow up with a consultation, (e.g. who are the main affected parties and what are their views, i.e. industry‘s views about the compliance costs of new regulations, community views about local changes with significant impacts; and whether there are
716 Australia‘s Gambling Industries (note 490 above) 16.
717 Australia‘s Gambling Industries (note 490above) 16.
718 Australia‘s Gambling Industries (note 490 above) 16.
719 Australia‘s Gambling Industries (note 490 above) 16 & 17.
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appropriate grievance procedures for regulatory arrangements, for example, easily accessible, timely and whether it‘s a fair system.);
7. After which they can then choose the best option,
8. Then check if the policy is likely to generate a net benefit, or 9. If the policy likely to achieve other desirable goals?
10.If no, then no policy action can be taken,
11.If yes, the policy option can then be made effective, (at this point it is important to ensure whether the option is clear, consistent, comprehensive and accessible to users, for example, granting licenses should be based on pre-agreed criteria and open to scrutiny);
12.In effect, then it can be implemented as the policy to be used, and thereafter, (in this part the government will then assess how the preferred option will be implemented, how the effectiveness of the option will be assessed, including the attempts to measure costs and benefits as well as how frequently this will be done.)
13.The policy can be reviewed. (Finally, whether a built-in provision to review or revoke the policy measure after it has been in place a certain time? For example, a regulation may become anachronistic with technological change, (e.g. the influence of internet gambling on existing gambling modes) or altered community attitudes. Also, whether any assessment of policies will be independent from the policy maker or regulator).
These thirteen steps are merely a guideline to making the best policy in such a complicated industry and if followed properly could result in a policy that best suits everyone involved and can also avoid short term and even long term irregularities in interactive gambling.
Technology ―changes are having a rapid impact on the ways in which gambling services are delivered; new technologies such as the internet, cable and digital television allow the delivery of gambling services into the homes of consumers.‖720 All issues that are associated with this technological advancement have been the core of this dissertation in every chapter, and since the increase in demand for a new way of doing things, it has become increasingly difficult for governments to determine the appropriate policy response for a more effective way to regulate interactive gambling. To this effect, the Western Australia Government, for example stated;
720 Australia‘s Gambling Industries (note 490 above) 305.
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―The emergence of broadband interactive technologies such as the internet and PayTV has a number of far-reaching implications for gambling in Western Australia. These include both new market opportunities for existing industries in the State and new sources of competition; with associated threats and opportunities for tax revenues. However, the potential for interstate and international gambling operators to sell their products directly challenges the State‘s firm policy and stand prohibiting access (outside of the casino) to electronic gaming.‖721
Central to this regulation/policy issue is ―whether the downside risks can be effectively controlled by regulation and/or technology.‖722
In a large-scale, making an assessment of other interactive technologies for gambling beforehand assists in having a predetermined idea of what the results of the chosen policy will be and how effective they will be either for the regulation or prohibition of interactive gambling. Accordingly, one has to examine the benefits and the costs of interactive gambling; in terms of the benefits, they can consider the consumer benefits and export opportunities, in this sense the consumer benefits will result in greater consumer choice which can then be maintained by lower prices and greater convenience.723 With Costs on the other hand consideration has to be given to the supplier integrity and problem gambling.724 With problem gambling there is the issue of tax revenue loss and access by minors.725 With supplier integrity there is the issue of community cost which requires a look at non-regulatory measures, then assessing whether controls on the internet can be warranted, if not then regulation could be a problem; if yes however, then what degree of control is possible?726 If none, then regulation is not feasible, if some degree of control is possible, then one can continue to weigh up the costs versus the benefits of the differing control, from that the government can then choose to have a complete ban on interactive gambling, not regulating or considering a more appropriate level of regulation.727
Choosing a policy that has the correct criteria is in part the most essential element in making regulatory decisions and making the correct assessment of the results of this new industry
721 Australia‘s Gambling Industries (note 490 above) 305.
722 Australia‘s Gambling Industries (note 490 above) 305.
723 Australia‘s Gambling Industries (note 490 above) 306.
724 Australia‘s Gambling Industries (note 490 above) 306.
725 Australia‘s Gambling Industries (note 490 above) 306.
726 Australia‘s Gambling Industries (note 490 above) 306.
727 Australia‘s Gambling Industries (note 490 above) 306.
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will go a long way in choosing the correct policy option and thereafter coming to a more competent form of regulation. The exceptional thing about this industry is that interactive gambling is still in its infancy, and subject to rapid change.728 Subsequently, it is only possible to speculate about what developments are possible for the delivery of interactive gambling services;729 but at the same time, if such steps are followed at an early stage the results can shape the turnout of events to be what the government wants for the country.