Africa-Press – Botswana. At least 1 900 entrepreneurs are set to ramp up their incomes beyond August, thanks to Limited Payout Machines (LPM’s) licences availed by Gambling Authority (GA).
These licences afford entrepreneurs to operate gambling machines with a limited maximum bet of P10 and a maximum jackpot of P3000 or as may be prescribed by the authority from time to time.
Speaking in an interview on Monday, GA’s chief of staff, Mr Moruntshi Kemorwale said acquisition of the licenses begun with purchasing a request for application (RFA) document at P2 500 and a compulsory applicant’s conference fee of P3000.
Mr Kemorwale said the opportunity presented by LPM licences came at least seven years into the existence of the authority and would see entrepreneurs having a huge stake in the economic advancement of the country.
Mr Kemorwale said their recent benchmarking trips to South Africa had demonstrated the viability for local entrepreneurs to tap into the US$ 700 billion (P9.1 billion) global market presented by the gambling sector.
He said a bottle store operator in the South African town of Rustenburg with only four LPMs made an equivalent of P250 000 per week, having paid the regulator, rent and staff salaries.
Mr Kemorwale said beyond bottle stores, these self-service machines were suitable for bars and restaurants, citing that the right ambience which took into account the floor plan and lightings had to be set before resuming operations.
He emphasised that the gambling establishment route operator would operate its gambling establishment site on a profit-sharing business arrangement of 60:40 ratio and the agreement would be subjected to approval by the authority before commencement of operations.
“The value chain for the LPM industry involves multiple stakeholders from component suppliers who provide necessary hardware and software, LPM manufacturers who assemble and build these machines, software developers who create gaming applications, to operators who manage the day-to-day functioning of the LPMs,” he said.
He said location providers offered venues for LPMs, while cash collection and security services ensured safe financial transactions.
In addition, Mr Kemorwale said regulatory authorities oversaw industry compliance and standards, and maintenance services ensured smooth operation, whereas the end-users interacted with the LPMs.
Furthermore, he said LPM businesses offered a range of socio-economic benefits, since they created employment opportunities across several roles, generated revenue and taxation, and stimulate local economic activity by encouraging customers to spend on ancillary services.
“They can boost tourism and provide entertainment, contribute to community development through potential profit allocation, foster social interaction, and offer training for skill development,” he said.
However, Mr Kemorwale said it was critical to ensure a balance between these benefits and potential risks such as gambling addiction and social harm, emphasising that responsible gambling practices and regulatory oversight were necessary to mitigate these risks and maintain a healthy gaming environment.
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