Mpumalanga Economic Regulator opens RFP for new bookmaker licences
The Mpumalanga Economic Regulator (MER) has presented a Request for Proposals (RFP) for the allocation of 20 new bookmaker licences. This announcement comes as a notable moment for both the local and national betting markets, especially as Mpumalanga continues to position itself as one of the South Africa’s leading jurisdictions in online betting.
The allocation of new licences has been a long-awaited development, with the last licensing round in the province being many years ago. This delay has led to inflated prices in the secondary market, even for licences that were dormant or inactive. The reopening of this process marks a change in provincial licencing policies, aiming to improve market accessibility for both new and existing operators.
New Mpumalanga Economic Regulator’s licencing landscape
The structured process outlined by the Mpumalanga Economic Regulator reveals essential regulatory changes and requirements that prospective operators must consider when applying for new licences. Notably, the RFP imposes several stipulations to ensure that new entrants align with Mpumalanga’s broader socio-economic objectives:
1. One licence per remises/URL: Multi-brand operators will need to plan their applications carefully, as this policy restricts them to a single licence per physical location or online platform.
2. Mandatory local presence: To further bolster local employment and economy, all operational functions—whether they be retail, administrative, IT, or call centres—must be based in Mpumalanga. This requirement ensures that the local community directly benefits from the growth of the gambling sector.
3. Transformation-focused evaluation: The evaluation process will prioritise black local ownership, job creation, enterprise development, and compliance with the Broad-Based Black Economic Empowerment (B-BBEE) standards. These criteria emphasise the provincial government’s commitment to transforming the business landscape in a way that is inclusive and equitable.
The RFP also outlines specific socio-economic contributions that operators will be mandated to observe:
– A commitment of 0.1% of Gross Gaming Revenue (GGR) to the National Responsible Gambling Programme.
– A contribution of 1% of GGR to Corporate Social Investment initiatives within Mpumalanga.
These requirements encourage operators to integrate responsible gambling practices and engage with community development efforts strategically.
Invest in opportunity: fees and selection process
The RFP comes with an application fee of R5,000 (USD 266) and an investigation deposit of R25,000 (USD 1329) per licence. These costs are relatively modest, especially when compared to licencing fees in other provinces, making the process more accessible for interested operators.
The selection process for the new licences will be structured and multi-phased, designed to enhance transparency and public involvement. It will include proposal screenings, opportunities for public participation, and probity investigations to ensure that all applicants meet the required standards.
This initiative has generated considerable interest among operators, investors, and stakeholders in the gambling sector. The introduction of 20 new bookmaker licences opens avenues for innovation and competition in a growing market, providing both opportunities and challenges for new entrants.
Industry experts and potential applicants should closely observe the developments stemming from this RFP and are encouraged to engage in discussions around the regulatory and strategic considerations it raises. The return of new licencing opportunities in Mpumalanga is not just a regulatory shift; it represents a newfound potential for growth within South Africa’s gambling sector. As the Mpumalanga Economic Regulator facilitates this process, the outcomes could significantly shape the future of betting across the nation.
