BoT probes continued use of Sh200 coins in slot machines
Slot machines
What you need to know:
- Reports they have show the problem of improper use of Sh200 coins as tokens still continues as the coins which have been damaged do not return to the bank to be withdrawn from the circulation, unlike the Sh50 Sh100 and Sh500 coins
Mbeya. The Bank of Tanzania (BoT) is investigating reports that Sh200 coins were still being used in gambling slot machines, leading to defacing of the coins in circulation.
BoT currency manager Ilulu Said Ilulu said the challenge of an increase in the number of defaced Sh200 coins was becoming an issue of public concern.
Besides, using the coins as tokens in gambling slot machines was improper. Hence, the need for investigations into the matter, he said.
“Our coins should be used for payments only, not as tokens in slot machines. The machines deface the coins,” he said, adding that information to that effect has already been communicated to the Gaming Board of Tanzania (GBT).
According to him, use of counterfeit, unapproved chips or tokens or coins for devices in slot machines is unlawful in Tanzania, according to the Gaming Act of 2003.
The BoT implements a clean money policy where it ensures only clean and fit bank notes and coins are kept in circulation in order to promote integrity and public confidence, he said.
Implementation of the policy entails setting up a system of withdrawing unfit bank notes and defaced coins from circulation and replacing them with clean currencies.
He said reports they have show the problem of improper use of Sh200 coins as tokens still continues as the coins which have been damaged do not return to the bank to be withdrawn from the circulation, unlike the Sh50 Sh100 and Sh500 coins.
BoT are investigating its continued improper use as tokens and will take legal measures against dishonest operators who defy directives on the use of the currency, he said.
“The problem still continues. When the Sh200 coins are issued they are not returned.
Mr Ilulu said operators who were using the coins as tokens were once arraigned in Morogoro where over Sh90 million worth of defaced Sh200 coins were confiscated.
Other operators were arraigned in Mwanza, and they lost about Sh134 million-worth of defaced coins, he said.
In the event, they have asked the Gaming Board to take measures to stop illegal use of the coins in slot machines.
“We have asked the Gaming Board to take measures to stop this, and we have sent them a reminder. But, they have not responded,” he said.
