Communications and Digital Technologies Minister Solly Malatsi will engage the Independent Communications Authority of South Africa (ICASA) to establish whether sufficient safeguards are in place to protect online gamblers and whether operators are complying with regulatory requirements.
“I think it is important that we understand what measures can appropriately be taken within ICASA’s regulatory mandate where electronic communications networks and services are used to facilitate access to gambling and betting products,” the Minister said on Wednesday in Johannesburg.
Speaking to leaders from government, broadcasting, sports federations, brands and clubs at the annual Sport Business Forum, Malatsi said his department is responsible for ensuring that all South Africans are safe online, including when gambling.
“Sports betting has grown exponentially in recent years, supported by the evolution of smart devices and technology. This offers strong revenue opportunities for teams, federations and other stakeholders in sport.
“But we have a duty to be aware of the impacts online gambling is having in a country where many people are poor, unemployed, desperate, and have low levels of financial literacy,” Malatsi said.
Digital technology opportunities
While new technologies bring major drawbacks, including job displacement, privacy and security risks, environmental damage and negative health impacts, the Minister focused on harnessing their benefits to grow the sports business industry.
Malatsi said digital technology has opened new avenues for revenue generation, disrupted stagnant business models and brought brands, institutions and public figures closer to their audiences than ever before.
“Technology is driving the same evolution in sport, with video and big data analysis informing load management and new commercialisation models being opened through digital advertising, team platform ownership, in-house content production and influencer revenue streams,” he said.
The Minister highlighted how artificial intelligence (AI) is improving broadcasting processes and enabling businesses to identify, measure and assess sponsorship more effectively.
“Clever use of geolocation and adaptive advertising means that adverts flighted during the same event can be targeted to different audiences in different markets, expanding the commercial opportunities for sponsors, broadcasters, federations and teams.
“For fans, digital technology allows for streaming onto smart devices, deeper connections with their favourite teams and personalities through more content, and easier access to online communities. Stars, teams and fans are now in charge of telling their own stories,” he said.
The Minister noted that the evolution of digital technology has also fostered the growth of new audiences and a resurgence in the popularity of school sport, creating more opportunities for young people to be scouted.
“SuperSport’s school and university offering could soon be competing with some of the best youth sport coverage we see in markets like the United States of America.
“By beaming school and club sport into the homes of millions of people, fans are now connecting with the stars of tomorrow, tracking their journey from their school first teams to the professional ranks and possibly even into the national teams. Youngsters such as Markus Muller, Ethan Adams, and Kwena Maphaka have become household names from their exploits in school sports. Scouting has been amplified,” Malatsi said.
Bridging the digital divide
He added that technology is already pushing human endeavour to greater heights, stressing that communications and digital infrastructure will become as essential to sport at most levels as floodlights, turnstiles and turf.
“Many of the sponsors and investors in sport are leading technology businesses, whether they be telecommunications giants, software developers, hardware companies or broadcasters.
“This may already be happening in certain spheres, but I would urge sporting teams to look beyond financial models of support and to leverage their commercial partnerships to drive innovation in their own teams, sporting fields or federations,” Malatsi said.
He emphasised that, for sport to grow, more people need to watch it, whether at a stadium or on a screen.
"It is therefore important that attending games in person or watching them virtually is within reach of as many South Africans as possible. It cannot be that only the elite or urban citizens have access to the stars who bring us so much joy – or pain, if you support Manchester United.
“I urge you to remember the digital divide and how you can play your part to build a more inclusive society by using technology to connect with more people – not to deepen that divide by building products and experiences limited to a fortunate few,” the Minister said. -SAnews.gov.za
