In a country where it’s economy continues to struggle amidst devastating cyclones, rising inflations and a protracted macro-fiscal crisis. A country whose economy is weakened by shortages of foreign exchange which in turn constrain the importation of essential commodities and production inputs. As citizens continues to battle and strive to survive through the hard economy, sports betting companies are emerging as the providers of new quick means of earning a living among the struggling Malawians.
Over the past 3 years, Malawi betting industry has been rapidly growing with at least 12 betting companies establishing themselves and registering with the Malawi Gaming and Lotteries Authority(MAGLA). These betting companies are said to have employed about 6 000 people and pays an annual revenue of over 121 billion to the Malawian government through MAGLA to development different communities they operate in.
Despite these huge revenues and job opportunities that the betting companies are offering to the economy, there alot of alarming issues that are emerging from their businesses and demand for government intervention.
These issues include but not limited to gambling addiction, increase in suicides, financial loss, mental health challenges and marriage breakdowns aswell as minors being exposed to online betting platforms without restrictions.
Increased suicides after losing bets, depression and increased financial burden including borrowing “katapila” are some of the issues that have come to life in Malawian communities after the government reintroduced betting without proper control, checks and audit systems in the betting industry.
These betting companies are less monitored, checked amd the government doesnt audit them as they do with other institutions. As such these companies, perform illegal marketing and advertising gimmicks which includes staging huge wins to attract more Malawians to bet their hard earned money and obviously lose it to them.
According to a report by one Magazine known as The Investigator, Meva winners of 30 million kwacha and above are basically staged with some admitting to be employees of the bet companies. These companies go as far as enticing small scale businessmen to proclaim that they have won multi millions for a small fee. For example, one businessman was paid 3 million to proclaim that he had won over 50 million kwacha.
Furthermore, it reported that among the supposedly big winners were foreigners who could not be traced after winning vast sums of millions from the bet companies with the exact origin of their nationality, raising questions of the authenticity of their said “winning”.
With betting companies being more powerful than the regulatory authorities, more and more death by suicide are being reported. Last year, at least 9 people between the age of 16 to 45 committed suicide in Blantyre, Lilongwe, Liwonde, Mzimba and Kasungu after losing millions of money to bet.
An employee of a certain company in Blantyre lost 9 million to bet and another gambled with money meant for salaries to other employees of more than 5 million kwacha. Both resorted to suicide.
Similarly, a mobile money agent in Liwonde took his life by throwing himself into shire river after losing undisclosed amount of money from his business to bet.
Experts have come to a conclusion that as much as betting companies offer a quick gateway to make millions, it is the companies that always win and not the gamblers.
Their analysis states that 90% of people that gamble lose their money to the bet companies, 9 percent simply win small amounts which are simply returns of what they stake and only 1% of the people win millions but not over 30 million in one go.
While betting companies are heavily regulated and monitored in other countries, Malawi has no capacity to conduct online audits or monitor the betting companies systems leaving them free to continue fleecing/scamming and stealing from unsuspecting Malawians who are in search of gold through gambling/betting.
It is safe to say the public is on it’s own and society must devise measures to protect the young and the adults from betting addiction.
The presence of fake winners and scams in the betting industry poses significant risks to people, families and national development as suicides claim breadwinners, loss of capital and increased mental health costs.