GAMING FOR AFRICA
“
Bingo is expected to continue to be the fastest-growing category during the next five years with a
projected 11.9% compound annual increase.
”
increase. Casino gambling revenues fell by 1.7% in 2016 mainly due to increased competition from illegal gambling and other forms of gambling, and a weak economy. Pietro Calicchio, Gambling Industry Leader for PwC South Africa says: “Although the gambling industry is an exciting and vibrant sector it faces a number of challenges, in particular a slowing economy.
“Illegal gambling also
continues to be a problem in South Africa. According to a research
paper issued by the National Gambling Board, the total impact of illegal land-based and illegal online gambling resulted in R1.9 billion lost in GDP for the 2016 financial year, as well as a loss of 3,785 jobs.” According to the National Gambling Board,
three-quarters of illegal online gamblers are in the 18-34 demographic group who visit the nearly 100 online sites that accept gamblers from South Africa, primarily through mobile phones. Slot machines are the most well-liked type of gambling activity but popular online gambling modes also include other games and forms of betting. There are signs that stepped-up efforts to curb illegal gambling are gaining traction. Furthermore, there has been progress with regard to illegal lotteries.
GAMBLING TAXES AND LEVIES
Gambling taxes and levies totaled R2.7 billion in 2016, up 4.9% from 2015. Casinos remain the largest contributor to gambling taxes and levies at R1.8
billion followed by the betting segment at R430 million. Gambling taxes and levies are forecast to reach R3.5 billion in 2021.
CASINO GAMBLING
Casinos accounted for 66% of total gross gambling revenues in 2016, down from 70% in 2015, while LPMs and bingo rose by a collective 16.9%. Currently, the National Gambling Act permits 40 licenced casinos in South Africa but the Department of Trade and Industry (DTI) authorised an additional licence for the North West province. CASA is challenging the authorisation of an additional licence as it is concerned that this sets a precedent for the granting of future licences. There are 38 operating casinos. Gauteng was the leading province in casino gross gambling revenues at R7.4 billion in 2016, down 1.6% from 2015. KwaZulu-Natal was next at R3.4 billion, a 0.3% decrease from 2015, followed by the Western Cape at R2.9 billion, up 4.5%, one of only two provinces that recorded an increase in 2016. For the forecast period as a whole, casino GGR is
projected to increase at an estimated 3.5% compound annual rate, rising to R21.2 billion in 2021 from R17.9 billion in 2016.
LIMITED PAYOUT MACHINES (LPMS)
LPMs accounted for 10% of gross gambling revenues in 2016, up from 9% in 2015. LPMs gross gambling revenues rose by 14.1% in 2016, continuing the pattern of double-digit annual increases. The number of LPMs rose by 5.2% in 2016 to 11 502. For
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