www.euroslot-online.com SOUTH AFRICA
Population 49m Under 15 14m Aged 15-64 32.3m Urban population 62 percent Major cities Johannesburg (3.6m), Cape Town (3.4m) GDP per capita $10,700 Business climate South Africa is an emerging market with a comparatively well-developed service sector and a young population. It is an attractive target for inward investment especially compared with other African countries and mid-income nations around the world; tax rates are low, regulation is moderate, corruption is less pervasive than in some of its counterparts, and access to credit is good. However, violent crime rates are among the world’s highest, unemployment is significant, and a large minority of the population receives welfare. Affirmative-action programmes have a strong influence on employment practices.
Gambling (apart from betting on horse races) was long banned in South Africa but the proliferation of illegal casinos led to a reversal of policy in the late 1990s and the market has grown rapidly since. According to a 2006 study, 87 percent of the population participated in the national lottery; 28 percent played slots; 23 percent bought scratch-cards; and 12 percent wagered on horse races. Only eight percent of South Africans said they never gambled.
Size of the industry In the 2010-11 financial year, total turnover was ZAR233bn
SOUTH AFRICA MARKET REPORT
(¤23.3bn). Nearly 90 percent of this was from casinos, and just 3.7 percent from limited payout machines (LPMs), as slots are known in South Africa. LPMs fared somewhat better in terms of gross gaming
revenue, however. For the gaming sector as a whole, this increased by 5.4 percent on the previous year, to ZAR17.1bn (¤1.7bn), with LPMs accounting for 5.3 percent of the total.
Regional breakdown There are sharp differences in the size of the gaming sector among provinces. Of that total GGR figure, 43.7 percent came from Gauteng province, 19 percent from KwaZulu-Natal and 17.6 percent from Western Cape, with other provinces contributing considerably less. For LPMs, however, Western Cape is by far the dominant
province, distantly followed by KwaZulu-Natal, where high taxation may be a factor.
LPMs LPM revenue has been rising steadily – from a zero start – for a
decade. There are also LPMs in Eastern Cape, Gauteng, Limpopo, and Mpumalanga provinces; they have not yet been rolled out to not yet rolled out to Free State, North West or Northern Cape. The enabling legislation specifies that the maximum number
allowed in the entire country is 50,000. These are further limited per province, as follows: Eastern Cape 6000 Free State 4000 Gauteng 10000 KwaZulu-Natal 9000 Mpumalanga 4000 Northern Cape 2000 Northern Province 3000 North West 3000 Western Cape 9000 Stakes are capped at ZAR5 (¤0.50) and payouts at ZAR500 (¤50); return to the player is just under 90 percent, with slight
COMMENT FROM SPONSOR
Spirit Gaming is made up of three distinct divisions. The first is the partner for Merkur Gaming. Africa is a continent full of opportunities. Demand for quality gaming in particular is rising in the sub-Saharan region. As the distributor for Merkur Gaming in Africa, Spirit Gaming is providing proven `made in Germany´ gaming machines to the African market. Merkur Gaming is part of the German Gauselmann Group – one of the world´s leading gaming machine manufacturers.
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Spirit Gaming has a wealth of experience in both the casino and street gaming market and can advise on the optimal set-up for casinos and gaming halls. Therefore, the consultancy division of Spirit Gaming offers operators the necessary advice to those who wish to set up and / or update their casinos or gaming halls. The consulting advice is comprehensive – ranging for advice on the live gaming / slot machine mix, advising on which products to choose - right up to the casino / gaming hall design and how to run the back-office. The third division is acting again as a distributor – this time in the German, Swiss, Luxembourg and Liechtenstein markets on behalf of Interblock. Spirit Gaming is bringing the unique advantages of the Organic electronic tables to these markets.
SEPTEMBER 2011
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