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CNN World Report

Gambling in South Africa Boosts Economy, but Destroys Others

Aired June 17, 2001 - 14:21   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ASIEH NAMDAR, CNN ANCHOR: In South Africa, there's a growing debate over the country's gambling industry. While it brings jobs and money to South Africa's struggling economy, it entices many to spend money they do not have.

SHIHAB RATTANSI, CNN ANCHOR: SABC reports on the industry and what the government is doing to help those taking a costly gamble on their luck.

(BEGIN VIDEOTAPE)

KIM CLOETE, SABC CORRESPONDENT (voice-over): Until a few years ago, horse racing was the main event for South Africans hoping to strike it lucky, but proliferation of casinos has changed this. While betting on the horses that are still popular, it's now being overtaken by the lure of the slot machine.

This South African (UNINTELLIGIBLE) is full of recreational gambling, it is a dangerous debt-trap for others.

Alec Irwin believes South Africans would be far better off with the legal, controlled industry, compared to the illegal operations which mushroomed in the mid-90s. Police have managed to scrap 100,000 illegal slot machines and cracking down on another 50,000.

For some though, gambling is a bad game, whichever way you play your cards.

(on camera): The gambling industry is expected to pump billions of (UNINTELLIGIBLE) and create thousands of jobs. Some people say it is counterproductive. Gamblers Anonymous says they've had an increase of calls from people ridden in debt from gambling.

(UNINTELLIGIBLE) responsible gambling program in Cape Town, it is a world first and funded by all casinos in South Africa. With a help line and counseling division, a research project, it is making inroads into gambling problems.

He says that about 1 percent of South Africans are categorized as compulsive gamblers.

RODGER MEYER, NATIONAL RESPONSIBLE GAMBLING PROGRAM: It is a condition that doesn't have a particularly pleasant prognosis: jail, divorce, death (UNINTELLIGIBLE). CLOETE: And 3 to 8 percent of the gambling population are considered problem gamblers.

MEYER: They spend too much time, too much money, it affects themselves and their families negatively, and they feel guilty about their behavior.

CLOETE: Some people are being assisted by help lines.

And the bank is also turned to the effect on the very poor, welfare officials are concerned about the proposed 50,000 limited pay- out machines, which will be installed in public places around the country.

CAS SALOOJE, PARLIAMENTARY WELFARE CMTE: There is no doubt that something that has to be looked at much more serious.

CLOETE: He is pleased that government is tightening up the industry, but worried about the spread of slot machines in both urban areas and the impoverished rural parts of the country.

MEYER: The proximity of the limited pay-out machines, whether it's at your local club, laundromat or pub, we're concerned problems related to gambling will increase.

CLOETE: What steps will have to be taken to limit the sometimes devastating affects of gambling on the (UNINTELLIGIBLE), the industry does have spinoffs. Casinos like this one have become far more than just slot machines and roulette tables. They boast hotels, shops, restaurants and entertainment centers, which have created thousands of jobs.

The industry also generates much needed taxes for provinces, but for some the problem gambling, just a few coins away, in the next few years, will tell if the industry is needing improve.

I'm Kim Cloete for the SABC for CNN WORLD REPORT.

(END VIDEOTAPE)

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