African Casino GGY (US$m) 2007 – 2015 Source: GBGC’s Global Gambling Report – Betting on Regulation
The 1996 South African National Gambling Act of 1996 set a limit of 40 casinos in the country. The Gambling Commission Report expressed the view that the current cap should be maintained and that a limit on both the number and type of slot machines in casinos should be set and the number of tables in casinos should also be monitored. Prior to the National Gambling Act of 1996 there were around 17 casinos operating in independent provinces: Eastern Cape, Free State, Limpopo and North West Province. The first legal casino resort in South Africa opened its doors during July 1998 at Graceland, Secunda, in Mpumalanga, under licence to Global Resorts Southern Highveld.
Between 2001 and 2006 gross gaming yield from South African casinos rose from R 4,395 million to R 10,125 million – some 130%. The increase in casino GGY over that period was explained by both more casinos coming into the market and the existing casinos increasing capacity. From 2001 to 2006 Casino GGY in South Africa increased by an average of 18% per annum. The GGY growth rate slowed down slightly in 2007, to a still healthy 15% to reach R11.6bn. The last year where casino GGY growth was in double digits was in 2008 (+12.9%).
According to the Casino Association of South Africa (CASA), the 35 CASA affiliated casinos recorded more than 61 million visits in 2009,
almost double of the more 34 million visits in 2005. For the same period the number of tables increased from 700 to 800 (+14%) and the number of slots from 17,481 to 22,206 (+27%).
But in 2009 casino GGY growth slowed dramatically, growing only by 2.6%. This slowdown is principally due the deterioration of the South African economy and the ensuing recession. In fact, in the middle of 2009 South African household consumption contracted sharply and did not start to recover until the third quarter of 2010. The growth rate in 2010, at 1.7% (R13.7bn) was even lower than 2009. Spend per gambler decreased from R 294 in 2005 to R 221, a drop of 25%. The number of visitors in 2010 fell to 59.1 million from 61.1 million in the previous year.
With 13 casinos, Sun International is the largest casino operator in South Africa. Sun International owns Sun City, the second oldest casino in South Africa. The company was established in 1983 and is listed on the Johannesburg Stock Exchange. In 2010 Sun International’s casino revenues were almost equal to those posted in 2009 (R 6.212bn in 2010 vs R6.234bn in 2009). In spite of South Africa’s difficult economic conditions, Sun International’s revenues have generally held up well in recent years.
The second biggest operator in the country is 17
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