Johnson’s contract as inaugural CEO of the Gambling Authority came to an end on 30th May 2022. Impressed by his good work, the Board of Directors had recommended that his contract to be renewed, but the Ministry of Trade had other plans. However, Johnson bows out a happy man who strongly believes that a change of guard will enable infusion of new ideas and help the Authority retain a competitive edge.
“This is the longest I’ve ever stayed in any institution. My departure was long overdue,” said Johnson.
Post the Gambling Authority, Johnson intends to continue contributing to the country’s economic transformation and recovery through commercial farming, an enterprise he has been building over the years.
“I’ve been preparing for commercial farming for a while now. That’s where I’m headed and I intend to hit the ground running. Of course I will always have a play in corporate, but I cannot speak about that at the moment,” he said.
Asked how he feels about his legacy, Johnsons said he remains confident that he has built a firm foundation from which the Gambling Authority should be able to soar higher and deliver on its mandate.
“From just two employees eight years ago, I leave behind a well-resourced institution with an outstanding master plan that only needs to be implemented so that Botswana can extract value from the gambling industry,” he said.
According to Johnson, the bedrock of gambling in Botswana was laid when he led the formulation of
the national lottery and sports betting. Despite his vast experience and expertise, Johnson knew nothing about the gambling industry when he was appointed in 2014. The Gambling Authority had just been established and mandated with regulating and controlling the operations of gambling establishments in Botswana. With the support of the Gambling Regulations and the Financial Intelligence Act, the Gambling Authority was also set up as a supervisory entity responsible for ensuring that none of its licensees partakes in any acts of money laundering.
“The Authority inherited nine casino licenses and the regulatory responsibility from the Casino Control Board. Its establishment brought about significant changes that aligned Botswana to developed gambling markets across the world. During the formative years we were more inward looking, focused on setting up organizational structures, building capacity and capability, and formulating strategies,” said Johnson.
There was also intense engagement with gambling industry players, meant to help them understand the new regulatory environment, adapt and develop capabilities so as to ensure compliance with the new rules and regulations. Johnson had to establish and leverage on networks with other local and international regulators to build capability and facilitate training of staff.
“We were mostly citizen personnel with little or no experience in gambling licensing and regulation. Our training was very cost effective as it relied heavily on the support of our regulatory counterparts. We also attended various conferences and workshops in South Africa, Europe and the USA. Our board members were also trained on corporate governance and the gambling industry,” said Johnson.
The Authority also signed Memoranda of Understanding with other regulators such as the National Lotteries Commission of South Africa as well as international gambling commissions in the United States and the United Kingdom. Locally, the Authority developed successful partnerships with organizations like the Financial Intelligence Agency (FIA), Botswana Unified Revenue Services (BURS), Botswana Communications Regulatory Authority (BOCRA), Competition Authority (CA), Directorate on Corruption and Economic Crime (DCEC) and the Botswana Police; with the aim of assisting with licensing and best practices in compliance monitoring.
The Authority also acquired membership at the Gambling Regulators Africa Forum (GRAF), of which Botswana was until August 2019 the Chair, and International Association of Gambling Regulators (IAGR). Additionally, Johnson himself became a member of the GRAF Technical Committee as well as the GRAF Training Sub-Committee. He was at some point, elected a member of the IAGR Board of Trustees for a period of three years.
“I was not alone in this process. I was with my team the entire time. I have to stress that what I have achieved was never going to be possible without the support of such a hardworking, supportive and dedicated team,” he said.
After the benchmarking exercise, Johnson focused on developing regulations and monetizing the operations of Botswana’s gambling industry into a multi-million Pula money spinner. He was hunting on familiar territory. A financial services guru who had held executive positions in institutions like the National Development Bank (NDB), Metropolitan, ULC, Barclays Bank Botswana, Botswana Investment Fund Management (BIFM) and Botswana Development Corporation (BDC); monetizing the Gambling Authority was familiar stomping ground for Johnson. The first step towards monetization was regulation and licensing of casinos and other gambling operations. The Authority started issuing licenses for casinos, bingo, and bookmakers
Said Johnson: “The regulations tightened control measures for the sector and covered all land-based and virtual betting in Botswana.”
Under the new regulations, betting premises, gambling machines and key personnel had to be scrutinized to curb illegal gambling. Stringent anti-money laundering and security monitoring measures were also put in place. With the regulations in place, the Authority was able to monitor the industry and ensure that taxes and levies due to government were paid. For example, casino license levies collected from the financial years 2016 to 2021 amounted to P86.15 million of which 92.98 million was paid to government inclusive of interest. The levy funds were used to finance responsible gambling programs and other gambling matters in line with the Gambling Act.
From the onset, the Gambling Authority sought to reenergize and diversify the industry by introducing new technology and new license types so as to increase investment and employment; enhance economic activity in the gambling space and foster innovation and skills transfer. This deliberate focus on technology would come in handy during the Covid-19 pandemic.
’’Our virtual service culture has enabled us to monitor casinos online, implement online procurement and tendering and introduce virtual meetings,” said Johnson.
The digitization drive also enabled the Gambling Authority to assist its clients and operators to grow their digital footprint through internet based gambling and betting.
Going forward, new licenses, lotteries and sports betting platforms will be largely internet based, given the anticipated customer base.
Johnson also took special pride in ensuring that the gambler was always protected by rooting out illegal operations and ensuring that all gambling activities were carried out in a responsible and sustainable manner, including the mitigation of the effects of over-gambling. The Authority recently carried out a baseline survey on the prevalence of excessive and problem gambling in Botswana, with a view to designing
interventions that combat gambling addiction
THE NATIONAL LOTTERY
After putting in place proper regulations for the licensing and operations of the gambling industry, Johnson set his eyes on the National Lottery, a major gaming activity that he says has potential to reap massive economic benefits for Botswana. Following successful negotiations with the preferred bidder, the National Lottery license is expected to be awarded soon, notwithstanding unforeseen delays. The lottery will greatly contribute to the national economy, create employment and boost financing of charitable causes.
“The lottery is expected to create a lot of economic activity and thousands of jobs along its value chain. Funds raised from the lottery will also support a wide range of good causes on education, health, grass-roots sports and many others,” said Johnson.
In Botswana, one percent of every P1 made from the national lottery will be collected into the Lottery Distribution Trust Fund and used to finance charity, youth empowerment, arts & culture as well as sports & recreation.
SPORTS BETTING
After the National Lottery, Johnson believes the Gambling Authority should introduce sports betting for football and horse racing.
“A lot of groundwork has already been done on sports betting. We just want to roll out the National Lottery and allow it to gain pace,” said Johnson.
However, he added, the Gambling Authority will issue a Request for Applications (RFA) as soon as the lotto license agreement has been issued. To guard against cheating and match fixing, the Authority has started engaging key stakeholders like Botswana National Sports Commission (BNSC).
CHALLENGES
While the Authority has made great strides since its inception, it still faces a number of challenges which often overshadow its achievements. According to Johnson, one of the biggest challenges that the gambling industry faces is negative public perception on a global scale.
“Gambling was originally a mafia industry before it was regulated. This stain has unfortunately stuck to people’s minds and many continue to view the industry is evil. This calls for a vigorous public education campaign,” said Johnson.
The Authority will soon embark on a nationwide educational program to help create awareness about gambling and its potential benefits to the economy. Johnson is a happy and content man, confident that he leaves behind a well-trained and efficient team. Asked about his succession plan, Johnson replied: “I groomed a solid and professional team, any of whom is capable of succeeding me. I believe they will do a good job because the Gambling Authority is now a well-oiled machine.”
