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Good Business Basics: Temptation may be hard to resist

The proliferation of establishments offering gambling opportunities is to put it mildly, scary.

The constraints faced by provincial and local government in terms of resources has forced them to aggressively seek funding sources outside of the allocations from central government.

Of late, two of these sources have stemmed from gaming and liquor.

Interests

While on the face of it the reorganisation of the statutory bodies, namely the Gambling and Liquor Boards have sought to portray themselves as ‘honest brokers’ for the protection of the interests of citizens, my impression is that their chief (unstated role) is to maximise the revenue to their provinces, and ensure that every cent due to their respective treasuries is recovered.

The proliferation of establishments offering gambling opportunities is to put it mildly, scary.

Every tavern, pub or hotel bar is now able to apply for a gambling licence, to the extent that a venue is generally within walking distance of anyone wanting to participate.

Side-effects

That’s aside from the free standing independent outlets mushrooming in shopping malls and central business districts – the explosion in this sector is bound to result in serious social side effects, including compulsive or problem gambling.

The temptation for a quick win or flutter, especially in these fraught economic times is going to be hard for many to resist.

While I am not discounting the positive economic outcomes of some of these developments, for example ‘greenfield projects’ that create infrastructure, and the creation of new work opportunities, I question whether proper and extensive research is being conducted by these gambling boards before granting new licences.

Fallout

It will certainly be impossible to ‘put the genie back in the bottle’ if a few years from now the negative social fallout becomes evident.

For example, placing gambling machines in taverns or shebeens in working class areas is surely going to impact on the customers.

Even if one had to grant that the patron had ‘budgeted’ for his or her weekly visit to the establishment, they will surely be tempted by the new gambling opportunity – to the detriment of the household budget.

Independent

It is imperative that the licensing authorities be totally independent, and qualified to interrogate each and every application for new licences, to ensure that all possible social impacts are considered.

Merely acting as ‘rubber stamps’ to provincial government is surely going to be a recipe for disaster that future generations will have to bear.

After matriculating, Vijay Naidoo studied Economics in the UK. Upon his return, he joined the family construction business as MD for 10 years.

He subsequently joined his sister in their furniture manufacturing business as director for quality assurance and operations. He was responsible for all quality aspects of their products, and led the project to the business achieving an ISO 9000 quality accreditation. As an export focused business, this was important for our international competitiveness.

Mr Naidoo has an abiding interest in quality management and productivity improvement, particularly in manufacturing.

More recently, he has focused a lot of his time on giving back to the community by way of mentorship of small businesses and sitting on the executive of the South Coast Chamber of Commerce. He also sits on the Board of the Ugu South Coast Development Agency.

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