Gauteng Place of Gold
Gauteng is the smallest South African province located in the north east but is highly urbanised and consists of the administrative capital Pretoria and the country’s largest city Johannesburg.
Gauteng is the most populated province with around 15 million and is known for its history of gold mining (its name in Sotho-Tswana means Place of Gold). It is South Africa’s economic powerhouse and generates over a third to the country’s economic growth. Prior to August 1996 only horse racing and betting on sporting events was permitted in the province. When the Gauteng Gambling Act 1995 was introduced this legalised other forms of gambling and established the Gauteng Gambling Board.
Tere are currently seven casino licences in Gauteng, 11 bingo licences, five Route Operators, 527 LPM sites, 128 bookmakers, one totalisator and 35 manufacturers.
Gauteng accounts for the highest amount of GGR generated (44 per cent) with R12.6bn and some 36 per cent of the taxes and levies generated with R1.13bn.
Gauteng is trying to increase its gambling taxes after higher targets were set by the provincial treasury which wants to raise R21.2bn over the next three years.
Revenues come mostly from gambling taxes and vehicle licensing. Gauteng contributed around R1.13bn last year made up of R907m in gaming taxes and R228m in betting tax. Te aim is to increase this to R1.3bn next year, then R1.8bn and finally R3bn by the third year.
Gauteng Chief Executive Steven Ngubeni says the first step towards this is to move the sector to business automation which will enable the gambling board to monitor industry revenue in real time and invoice the operators rather than the current system of waiting for operators to declare their taxes.
Ngubeni wants to also curb illegal gambling and estimates there are around 400 illegal outlets costing the gambling board R400m each year. Tere are plans to introduce 50 new betting licences in Gauteng also.
Back in 2016 the Gauteng Provincial P74 NEWSWIRE / INTERACTIVE / MARKET DATA
Government developed a strategy to boost economic development via gambling and published an amendment to the Gauteng Gambling Regulation to review the casino tax structure. Tey wanted to replace the fixed rate of nine per cent with a sliding scale of eight, 12 and 15 per cent tax based on the GGR. But casino association CASA objected to the increase and the provincial government withdrew the proposals and planned a fresh look at gaming levies.
Meanwhile in April 2019 there were changes to the province’s gambling regulations which saw licensing fees increased and also an amendment to Regulation 276 which has deprived Phumelela of its 50 per cent cut of the six per cent betting tax gain which came from player winnings on bookmaker bets. Tis tax was set up in the 1990s to ensure the sustainability of the racing industry and amounts to around R75m per year.
Phumelela cut its workforce by 15 per cent and closed some retail locations and has also reduced prize money. Phumelela is currently negotiating with the Gauteng government to have its share of the levy reinstated.
CASINOS Tere are seven casinos in Gauteng.
MonteCasino in Fourways has 1,700 slots and 83 tables and saw revenues in 2018/19 of R2.7bn. Gold Reef City is in the heart of Johannesburg and has 1,600 slots, 51 table games and saw revenues of R1.47bn and Silverstar is surround by the Magalies Mountains and located in
Krugersdrop and has 900 slots, 31 table games and saw revenues of R691m.
Tese three are operated by Tsogo Sun which saw a 4.1 per cent growth in provincial gaming in Gauteng in 2018/19. Gaming win growth of 5.1 per cent was achieved at Montecasino and 1.5 per cent at Silverstar and a drop of 1.7 per cent at Gold Reef City.
Emperors Palace in Kempton Park is operated by the Peermont Group. It is located next to the OR Tambo airport in Johannesburg with shuttle services to Peermont’s four hotels. Te casino has 69 table games and 1,716 slots.
Sun International operates Carnival City with 1,400 slots and 47 table games and also Time Square which opened in 2018 and has 1,736 slots and 61 table games.
Finally, Emerald Safari Resort is operated by Caesars and located on the banks of the Vaal River just 45 minutes outside of Johannesburg.
It opened back in 1997 and there are 430 slots and 22 table games. In May last year Peermont announced a purchase agreement to acquire a 70
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