Mining is a big commodity especially gold and minerals whilst the province accounts for 83 per cent of South Africa’s coal production. It’s a popular tourist zone especially for nature, wildlife, sports and adventure. Tere are three district councils – Ehlanzeni, Nkangala and Gert Sibande within the province and then 18 local municipalities with Mbombela as the capital city.
Te Mpumalanga Economic Regulator (MER) is the governing body for both the gambling and liquor sectors and functions under the Mpumalanga Gambling Act of 1995 and the Mpumalanga Liquor Licensing Act of 2006.
Tis organisation was set up in 2017 and merged the former Mpumalanga Gambling Board and Liquor Authority into a new entity to streamline the duties of both. Te province offers three casinos, 204 LPM sites, six bingo halls, totalisator with 25 outlets and 37 betting shops (bookmakers).
Te gambling GGR for the province in 2018/19 was R1.48bn whilst total tax levies amounted to R117.4m.
CASINOS Four casino licences were allocated to the
province of Mpumalanga and to date there are three operating with a total of 1,155 slots and 56 table games. Te authority recently invited proposals for the fourth licence.
Graceland Hotel Casino and Country Club in Secunda operates 294 slots and 18 table games and is operated by Peermont. Te casino is situated in a charming resort with the four star Peermont Walmont hotel, golf and recreational facilities.
Tsogo Sun operates the other two casinos - Emnotweni Casino in Mbombela which opened back in 1997 and has 425 slots and 19 table games and Te Ridge Casino in Witbank which has 436 slots and 19 table games. Tere is a smoking casino and salon privé.
Te total amounted wagered on the casino slots in 2018/19 was R11.3bn whilst GGR was R610.4m. For table games the DROP total was R578.4m and GGR was R124.3m. Total levies collected for the casino sector was R51.7m which represents almost 44 per cent.
Gambling levy is paid at a sliding rate based on monthly GGR. Up to R10m GGR pay five per cent; R10m to R15m pay R500,000 plus 7.5 per cent exceeding R10m whilst those earning R15m or above pay R875,000 plus 10 per cent on anything over R15m.
LPMS As of March 2019, there were 204 LPM sites
operating 1,071 machines. Total money wagered amounted to R2.22bn with GGR of R193.9m. Total levies collected was R19.4m (16.5 per cent of all levies). Te province is permitted 4,000 LPMs in total with 2,000 initial rollout divided between 1,760 Type A and B and 240 Type C. Tere is a limit of five maximum LPM operator licences (type A) and 20 Type B operator licences and a maximum of six licences with two licences per district for Type C.
Te application fee for route operator is R50,000; R5,000 for a site operator R25,000 for an independent operator. Annual licence fees are R25,000 plus R250 per LPM for a route
P78 NEWSWIRE / INTERACTIVE / MARKET DATA
operator; R2,500 for both Type A and Type B site operators and R12,500 plus R250 per LPM for Type C. Gambling levy for all route operators and independent site operators is 10 per cent of monthly GGR.
Tere are two route operators - Vukani Gaming Mpumalanga and Grand Gaming Slots (Sun International).
BINGO Bingo has grown significantly and there are
currently six bingo sites in the province operating 645 gaming positions.
Application fee is R100 per seat (maximum R50,000) with an annual licence fee of R50 per seat.
Total amount wagered last year was R2.4bn and GGR was R139.6m. Total levies collected was R11.1m (9.5 per cent of all levies). Gambling levy is eight per cent on monthly GGR.
Galaxy operates two sites in Hazyview and Tonga, Goldrush has three sites in Bushbuckridge, Ermelo and Middelburg and Great Bingo has one site in Volksrust.
As of March 2019, there were 204 LPM sites operating 1,071 machines. Total money wagered amounted to R2.22bn with GGR of R193.9m. Total levies collected was R19.4m (16.5 per cent of all levies). Te province is permitted 4,000 LPMs in total with 2,000 initial rollout divided between 1,760 Type A and B and 240 Type C.
BETTING Tere are 62 betting outlets in Mpumalanga –
Totalisator with 25 outlets and 37 bookmaker outlets with 12 bookmakers.
Total stake in 2018/19 was R2.12bn with GGR of R415.1m. Total levies collected was R35m which is 30 per cent of all levies.
Application fee for a totalisator operator licence is R50,000 and R5,000 for a totalisator branch or agency. Totalisator operators pay 2.5 per cent on gross takings and 10 per cent on undistributed takings and unclaimed dividends.
Application fee for bookmakers is R5,000 with annual licence fee of R2,500. Te gambling levy for bookmakers is six per cent of punters winnings on horseracing and 6.5 per cent of GGR on sporting events.
Phumelela betting handle in the province was R131m last year with betting income of R35m. Phumelela has 12 TAB totalisator betting outlets in Mpumalanga and 13 agents.
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