LOVE LETTERS TO TANZANIA : Is gaming revenue a sure bet?

Previous generations associated gambling with Las Vegas casinos, patronised by sinful individuals. There was a social stigma attached to betting because for centuries, governments restricted or banned gambling to limit its destructive influence on society. Until they discovered electronic poker machines’ potential to become a seemingly inexhaustible tax revenue source.

In 2017, casinos are mushrooming. Sports betting and online gambling are proliferating. Tricksters try to sell naive citizens slot machine “secrets” and sports betting strategies, as if poker machines could be conquered and league results reliably predicted. Are we this ignorant?

For some well-off individuals it does not matter whether they invest in a private jet, diamonds or the hunt for the elusive grand prize at a casino table. Members of exclusive high rollers clubs may find the latter more thrilling and still have enough money for life’s necessities and luxuries. As their gambling is an environmentally friendly way of disposing of excess income, why should governments of developing countries not exploit the opportunity to collect taxes via venues enjoyed by wealthy citizens and business travellers for whom gambling is an enjoyable pastime?

The risk lies in gambling’s addictive nature and that it has become too accessible to citizens who cannot afford to lose money. Dar es Salaam residents can gamble 24 hours a day now, with minimum bets as low as Sh6. Electronic gaming machines continue to invade hotels and bars while sports betting venues appear in rural Tanzania, resulting in more people on low incomes lured into a potential addiction, disguised as recreation.

Advertisements depict winning as a logical consequence of betting, so punters gamble away their livelihoods while firmly believing that eventually the jackpot will be theirs. Some try gambling to “earn” money for unexpected expenses or to clear debts. Who can blame unemployed young men with low job prospects for hoping to utilise their knowledge of football as a way out of poverty?

The problem is that the gambling industry is so lucrative because the odds are clearly stacked against the customer. Gambling does not solve but exacerbate the financial problems of vulnerable citizens. Frequent betters may lose not only money but also their focus on more productive activities which could lead to real, sustainable improvements in their standard of living.

Many Tanzanians recognise that the real winner is always the betting operator, as gamblers are more likely to be killed by a lightning strike than win millions. However, those who become addicted can no longer control the urge to gamble, experiencing serious financial, psychological and relationship problems. Hoping to recover losses, the afflicted often continue even after their money runs out. They may sell valuables or borrow money, which they intend to repay after the elusive “big win” eventuates. Instead, they slip into debt.

Compulsive gamblers may lie to and steal from family members, embezzle funds from employers or engage in other illegal activities to obtain money to keep gambling. Feeling a sense of shame, problem gamblers frequently hide their addiction, at times even neglecting their parental duties and eventually losing not only everything they own but also the support of loved ones.

The devastating impact of mushrooming gaming and betting operations on society eventually forces governments to introduce costly harm minimisation measures when the social cost of problem gambling can no longer be ignored. Ironically, gaming tax revenue is then spent on educating the population about the risks of gambling and to remedy the societal issues caused by gambling.

School curricula increasingly feature gambling awareness programmes to help youngsters understand that even though Hollywood movies may suggest so, gambling is not a likely source of income but a sure way of losing hard-earned money and potentially destroys lives. As informed citizens, we must accept that gambling operators’ earnings rely on their customers constantly losing. The industry’s aim is to make profits, not to produce billionaires.