Media Statement: Gambling harming the poorest of society

African Christian Democratic Party MP Mighty Madasa

4 June 2003

With over 50% of the unemployed or those earning less than R500 a month buying Lotto tickets or gambling at casinos, South Africa needs to relook at the issue of gambling.

"Gambling is obviously hitting those who can least afford it the hardest," said ACDP spokesperson on trade and industry Zwelethu Madasa.

"The social impact of the economic figures released by the National Gambling Board is greater than any economic benefits gambling might offer our economy."

According to the study on the economic impact of legalised gambling in South Africa since 1994, growth in the percentage of household income spent on gambling rose by 46% between 2000 and 2001. Most of this money is found by decreasing spending on reading materials, clothing and footwear, furniture and luxury items.

"These are all labour-intensive industries which employ and support millions of South Africans. The substitution of spending money on these items as well as not saving money will have a greater effect on the growth of our economy than the contributions by casinos and the Lotto.

"The introduction of limited payout machines in entertainment areas is yet another example of targeting the poorest in the interests of profit.

"Over 30% of people surveyed indicated that they find gambling unacceptable, yet the government continues to allow the gambling industry to make enormous profits at the expense of the poor," Madasa said.

"The whole issue of gambling needs urgent review."


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For more information: Mighty Madasa MP at 083 302 4938
Media Liaison: Charmaine Horne at 084 370 3550 or 021 403 3307