Concern over Lotteries Bill
A lack of detail on what would be done with the proceeds of a state lottery, and concerns about whether it would fan the growing gambling culture in the country, were raised by opposition parties this week during debate on the Lotteries Bill in the National Assembly.
The president of the UPM, Jan van Wyk, said although national lotteries aimed to generate money for state-funded projects, he was not convinced that the Lotteries Bill in its current form would contribute effectively to funding state projects.
Van Wyk said considering the social evils Namibia was faced with, he was afraid that a state lottery would negatively affect the vast majority of people.
He said in developed countries statistics showed that most participants bought lottery tickets “responsibly and sporadically”.
In Namibia, Van Wyk believed a state lottery would feed a gambling culture that would create social problems and harm the low- and middle-income groups.
“Poor people are far more likely to buy tickets than their wealthier counterparts. They spend a larger percentage of their income on the lottery, and many studies on state lotteries have found that low-income citizens account for most of the sales and that sales are highest in the poorest areas,” he said.
One study found that lotteries could set off a vicious cycle that not only exploited poor people's desire to escape poverty, but also directly prevented them from improving their financial situation. “Participants have an individual responsibility to play the game responsibly, and spend within their means while pursuing the dream of huge cash prizes. As long as they do so, then there is no reason why they cannot enjoy the lottery while also contributing to state-funded educational projects,” Van Wyk said.
Nico Smit of the DTA said the idea of a national lottery had long been mooted and it was pleasing to see that the idea was starting to reach the stage before implementation.
He said the Geingob administration must be applauded for that.
But Smit questioned part five of the Lotteries Bill, which deals with what would be done with the proceeds of a state lottery.
“As things stand, we are being asked to pass this bill, whose primary aim is to establish a state lottery, without having a genuine and clear idea what will be done with the proceeds or who, aside from bursaries for scholars and learners, will be the targeted beneficiaries of the State Lottery Trust Fund.”
Smit pointed out that sections 44 to 48 provide for some of the proceeds to be held in a trust fund by the Lotteries Board, whereas some would be transferred to the State Revenue Fund to “advance any governmental objectives”.
The Lotteries Board would be empowered to use the money from the trust fund to “issue educational grants to learners and students” or “to advance any national cause determined by the board with the concurrence of the minister”.
He said while educational grants clearly identified a specific target group in need of assistance, the references to “any national cause” or “advance any governmental objectives” did not make it clear what would be done with the proceeds.
“Will it be used to build houses for the poor, to buy agricultural land and to distribute to poor families, or will it be used to construct other infrastructure?”
He said these shortcomings made it difficult to analyse any potential socio-economic benefits of the proposed state lottery.
Smit said he supported the creation of a state lottery in principle, because it could help reduce poverty if applied properly.
ELLANIE SMIT
The president of the UPM, Jan van Wyk, said although national lotteries aimed to generate money for state-funded projects, he was not convinced that the Lotteries Bill in its current form would contribute effectively to funding state projects.
Van Wyk said considering the social evils Namibia was faced with, he was afraid that a state lottery would negatively affect the vast majority of people.
He said in developed countries statistics showed that most participants bought lottery tickets “responsibly and sporadically”.
In Namibia, Van Wyk believed a state lottery would feed a gambling culture that would create social problems and harm the low- and middle-income groups.
“Poor people are far more likely to buy tickets than their wealthier counterparts. They spend a larger percentage of their income on the lottery, and many studies on state lotteries have found that low-income citizens account for most of the sales and that sales are highest in the poorest areas,” he said.
One study found that lotteries could set off a vicious cycle that not only exploited poor people's desire to escape poverty, but also directly prevented them from improving their financial situation. “Participants have an individual responsibility to play the game responsibly, and spend within their means while pursuing the dream of huge cash prizes. As long as they do so, then there is no reason why they cannot enjoy the lottery while also contributing to state-funded educational projects,” Van Wyk said.
Nico Smit of the DTA said the idea of a national lottery had long been mooted and it was pleasing to see that the idea was starting to reach the stage before implementation.
He said the Geingob administration must be applauded for that.
But Smit questioned part five of the Lotteries Bill, which deals with what would be done with the proceeds of a state lottery.
“As things stand, we are being asked to pass this bill, whose primary aim is to establish a state lottery, without having a genuine and clear idea what will be done with the proceeds or who, aside from bursaries for scholars and learners, will be the targeted beneficiaries of the State Lottery Trust Fund.”
Smit pointed out that sections 44 to 48 provide for some of the proceeds to be held in a trust fund by the Lotteries Board, whereas some would be transferred to the State Revenue Fund to “advance any governmental objectives”.
The Lotteries Board would be empowered to use the money from the trust fund to “issue educational grants to learners and students” or “to advance any national cause determined by the board with the concurrence of the minister”.
He said while educational grants clearly identified a specific target group in need of assistance, the references to “any national cause” or “advance any governmental objectives” did not make it clear what would be done with the proceeds.
“Will it be used to build houses for the poor, to buy agricultural land and to distribute to poor families, or will it be used to construct other infrastructure?”
He said these shortcomings made it difficult to analyse any potential socio-economic benefits of the proposed state lottery.
Smit said he supported the creation of a state lottery in principle, because it could help reduce poverty if applied properly.
ELLANIE SMIT
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