THE GAMBLING ENVIRONMENT Gambling has existed in South Africa ever since
it was partially legalised during the 1970s. Te regulatory framework came into place in the late 1990s and the industry was formalised and today operates in a highly regulated and organised format. Te market is made up of casinos, LPMs, bingo and sports betting with an annual turnover (2019) of R425.5bn and GGR of R30.7bn, whilst the national lottery rakes in a further R3bn in revenues.
Te casino market accounts for around two- thirds of the gaming market (61 per cent) with revenues of R18.6bn in 2019, whilst bingo accounts for around five per cent (R1.58bn), LPMs 11 per cent (R3.35bn) and sports betting and horse racing (R7.22bn) around 23 per cent.
At present there are 41 casino licences available and 39 operational with a total of 24,781 slots and 932 gaming tables (2019 data). Tsogo Sun has 13 casinos followed by Sun International with 13 casinos, Peermont Group with eight casinos and London Clubs, Northern Cape Casino Consultants, Galaxy Bingo (Tsogo), Eastern Cape Consortium and Billion Group with one casino each.
Meanwhile, the maximum number of limited payout machines (LPMs) which can be operated
provinces and Goldrush Gaming operating in seven provinces and Grand Gaming which operates in three and Galaxy Bingo in two provinces.
Bingo is operated in six of the nine provinces and big operators include Galaxy Bingo operational is all six provinces and Gold Rush in five provinces. Tere are 52 bingo outlets in total and some 8,600 bingo positions (traditional and EBTs).
In the totalisator sector there are some 388 totalisator outlets, 295 bookmakers and over 600 bookmaker outlets in South Africa.
Phumelela Gaming and Leisure Ltd is licensed to operate horse racing and totalisator betting in seven of South Africa’s nine provinces. It has 87 branches, 78 agencies and 16 Betting World Fixed Odds outlets across South Africa (2019). Te company currently has seven racecourses in five provinces in South Africa. Flamingo Park in Northern Cape closed at the end of last year. Te company manages horse racing and tote betting in the Western Cape on behalf of Kenilworth Racing and Gold Circle is the totalisator operator in Kwa Zulu-Natal.
Phumelela is the integrated horse racing and betting operator and conducts fixed odds betting
Phumelela conducts horse racing and tote betting under the TAB banner in Gauteng, Free State, Eastern Cape and
Northern Cape. Te company reported its worse results in its 22 year history with net losses of R95.8m last year. Te
company’s revenue is down 7.6 per cent year on year with a 9.7 per cent decline in its local betting business. Income in 2019 amounted to R1.41bn compared to R1.52bn in 2018.
throughout South Africa is 50,000 and this is divided up between the nine provinces.
Gauteng has the highest number (20 per cent) with 10,000 followed by Western Cape and KwaZulu-Natal with 9,000 each, Eastern Cape with 6,000, 4,000 in Free State and Mpumalanga and 3,000 in the provinces of Limpopo and North West and 2,000 in Northern Cape. Rollout was done in stages with phase one permitted 50 per cent of the full allocation. Tere were 2,347 LPM operators in total with over 13,000 LPMs active in the FY 2018/2019.
Te maximum number of LPMs permitted per single site is five machines (Type A), between six and 30 (Type B) and 40 plus machines (Type C). Te games are limited for over 18s whilst the maximum price of play is R5 and maximum prize is R500.
Only route operators, site operators and independent site operators will be licensed to operate LPMs via the provincial licensing authorities.
Te biggest route operating companies are Vukani Gaming which operates LPMs in eight
on horse racing, sports and numbers (lotteries) via bookmaking outlets throughout South Africa and also via call centres and online.
Horse racing in Gauteng was totally restructured in 1997 and Phumelela was formed that year to facilitate horseracing in the province which was later followed by other provinces.
Phumelela conducts horse racing and tote betting under the TAB banner in Gauteng, Free State, Eastern Cape and Northern Cape. It operates tote betting in the other three provinces – Limpopo, Mpumalanga and North West.
Total betting handle for 2019 amounted to R5.27bn divided between totalisator with R2.98bn and fixed odds with R2.29bn. Betting income was R1.06bn divided between totalisator with R773m and fixed odds with R293m.
Phumelela reported its worse results in its 22 year history with net losses of R95.8m last year. Te company’s revenue is down 7.6 per cent year on year with a 9.7 per cent decline in its local betting business. Income in 2019 amounted to R1.41bn compared to R1.52bn in 2018.
NEWSWIRE / INTERACTIVE / MARKET DATA P69
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