GAMING FOR AFRICA
the forecast period as a whole, LPM GGR is projected to expand at a 7.5% compound annual rate to R3.9 billion in 2021, from R2.7 billion in 2016.
BINGO
Bingo accounted for 5% of total gross gambling revenue in 2016, up from 4% in 2015, buoyed by a 36.6% rise in GGR – the fastest-growing category. Gauteng generated 65% of the total growth in bingo GGR, with a 37.6% increase to R813 million. For the forecast period as a whole, bingo GGR is expected to increase at an 11.9% compound annual rate, from R1.3 billion in 2016 to R2.2 billion in 2021.
BETTING
Betting GGR rose by 14.3% in 2016, raising its share of total GGR to 19% from 17% in 2015. Betting is the second-largest gambling category behind casinos. Sports betting rose by 21.3% in 2016 to R2.9 billion, more than three times the R847 million total in 2012. Sports betting includes betting on the outcome of lotteries and similar games which have grown in popularity and aided the growth in sports betting GGR. In addition to regularly scheduled sports events, major international tournaments such as the FIFA World Cup, the Rugby World Cup and the European Championship further boost the volume of betting. For the forecast period as a whole, sports betting GGR is projected to increase at a 12.3% compound annual rate to R5.2 billion in 2020. Horse racing GGR rose by 6.2% in 2016, but that
gain was partially generated by sports betting in the Eastern Cape, which is included in horse racing totals. Horseracing GGR is forecast to increase to R2.3 billion in 2021.
NATIONAL LOTTERY
After decreasing between 2012 and 2016, lottery ticket sales increased in 2016 and lottery GGR rose by 34.7% to R2.98 billion. Although the National Lotteries Commission (NLC) did not cite a reason for the jump in ticket sales, the increase may have reflected successful efforts to curb illegal competition and the effects of the introduction of additional games. It is likely that the gain in 2016 is a one-time boost. National Lottery GGR is expected to increase, but growth will be modest, averaging less than 1% per year. National Lottery GGR is projected to increase to R3.08 billion in 2021 from R2.98 billion in 2016, a 0.7% compound annual increase. However this may be influenced by the introduction of additional games or changes to the current offering. “The gambling industry in South Africa will
Monitoring System). The new 8-year NCEMS contract has been awarded to Route Monitoring (Pty) Ltd.
T The NCEMS monitors South Africa’s more than 11
500 operational LPM (Limited Payout Machine) Slots situated in pubs, clubs, shebeens and taverns across the country. LPMs (or AWPs as they are known in some markets) have a limited wager and limited prize and make up the country’s route market. Although national legislation allows for a total of 50 000 LPM slots outside of casinos, the roll-out of LPMs has been somewhat slow, but LPM GGR is projected to expand at a 7.5% compound annual rate to R3.9 billion in 2021, from R2.7 billion in 2016. Route Monitoring (Pty) Ltd’s contract includes the
allows for a total of 50 000 LPM slots outside of casinos, the roll- out of LPMs has been somewhat slow ...
“ ”
supply, installation, commisioning, operation, management and maintenance of a national central monitoring system (NCEMS) for limited payout machines in the republic of South Africa and collection of related monitoring fees for eight years.
continue to be adversely affected in the near term by slower economic growth, but improving economic conditions over the latter part of the forecast period will aid growth. “The industry remains an important contributor
to the economy through the creation of jobs, continued capital expansion and the payment of taxes to both provincial and national government,” Calicchio comments.
DOWNLOAD THE FULL REPORT HERE, COURTESY OF PWC:
WWW.PWC.CO.ZA/GAMBLING
26 DECEMBER 2017 Although national legislation
he South African National Gambling Board has announced the winning bid for the country’s NCEMS (National Central Electronic
NCEMS tender for South African LPMs awarded
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