Johannesburg - The promulgation of national regulation on the limited payout
machine (LPM) industry, which has been repeatedly delayed, could pose a
threat to the national lottery, Alec Erwin, the minister of trade and
industry, said yesterday.
"We still have to determine how we are going to control this industry" said
Erwin. "At this stage, priority will be given to the national lottery."
The promulgation of this regulation would lead to the introduction of LPMs,
which are non-casino slot machines. The LPM industry is expected to create
more than 2 000 jobs in the first year and generate about R1,5 billion for
the fiscus.
International operators, who have invested more than R300 million through
joint venture companies in anticipation of the promulgation, have complained
about the delays.
An industry analyst said these investors could be forced to leave South
Africa if the go-ahead was prolonged any further.
"If the department sees the LPM industry as a threat to the national
lottery, this might mean that the launch of the LPMs will only happen once
the lottery has been established next year."