As a regulator, the NLC identified challenges in the lotteries industry that include conflicting legislation and different regulators for gambling and lotteries which create ambiguity in regulation; lack of enforcement powers to effectively regulate lotteries; the minimum percentage contribution to good causes is not determined by the regulator; and the dual mandate of the NLC for regulating lotteries and grant funding has created a situation wherein the NLC is known as a grant maker, thus diluting the impact of the NLC as a regulator.

• Harmonisation of the gambling and lottery legislation should be embarked upon to resolve conflict of interpreting legislation for Provincial Gambling Boards and the NLC. To be effective in the regulation of lotteries and sports pools, priority should be given to reviewing the institutional framework of the NLC where its regulatory mandate is separated from that of grant funding. The NLC should be afforded enforcement powers in the Lotteries Act beyond those of approaching the court for effective regulation and enforcement of the Act. The current National Lottery model requires review in terms of government shareholding in the Operator, as this affects the independence of the NLC to effectively regulate. The minimum percentage contribution to good causes should be determined by the Board and included in the Request for Proposals to appoint an Operator. Player protection should be driven by the regulator funded by the Operator from sales of the National Lottery.
• Online gaming is providing more options for consumers, also threatening the revenue generated by traditional lottery operators. The proliferation of online retailers poses threats to the restrictive legislated environments. The global lottery industry is coming to grips with the rapid changes in the industry as a consequence of online gaming and the use of technology.
• The world is moving towards a gaming industry where lotteries and gambling are under one regulatory authority. Regulation of lotteries and gambling should be centrally regulated such that maximum benefit is derived for players, good causes and the economy.
• There are opportunities to harmonise the South African Gambling and Lotteries legislation in order to resolve the conflict of interpretation and avoid ambiguity in regulating of the Lotteries and Gambling sectors.
• The Lotteries Act and its regulations can be amended to include enforcement powers, which include powers to inspect, together with administrative and criminal sanctions in order for the NLC to regulate the industry effectively.
• The current National Lottery model should be reviewed in terms of government shareholding in the Operator, as this affects the independence of the NLC to effectively regulate the National Lottery.
• The Request for Proposal should be explicitly designed to provide the opportunity for the regulator and Ministry to determine acceptable contribution to maximise revenue for good causes prior to entering into a Licence Agreement with the successful bidder.
• Participant protection must be driven by the regulator and funded from National Lottery sales.
• The best model for the South African market should be researched to determine whether a state-owned can be a mechanism to maximise contributions for good causes.
• Globally lottery regulators are pure regulators, independent of grant making functions and responsibilities. This model has enhanced resources allocated to regulating lotteries and sports pools and delivering effective regulation. The Board has learnt that in order to effectively protect participants and maximise revenue for good causes, better and stringent regulation is required.