Legal online still banned
A new report on Africa-Me.com suggests there is “explosive growth” in online gambling and casino development in Africa. South Africa, Nigeria and Kenya all have flourishing industries, both online and land-based. South Africa is home of the largest jurisdiction on the continent, with more than $1.5 billion in annual revenue, the website reports.
The increase in internet connectivity has also grown the industry, though the South African government recently denied a proposal to expand online betting to include poker and other casino games.
As always, gaming proponents say it’s better to regulate and tax the industry than let the money flow to illegal offshore operations. But the South African Department of Trade and Industry has turned a deaf ear to that reasoning, citing “social ills associated with gambling, especially online gambling.”
The government has severe punishments in place for illegal gamblers—fines of up to $865,000 and prison terms of up to 10 years. In July, the trade department affirmed its anti-online position, calling for new ways to prevent access to online gambling on sites outside the country.
Meanwhile, Johannesburg-based Tsogo Sun Holdings Ltd., Africa’s largest casino operator, is poised to take advantage of the boom by upgrading two of its largest land-based casinos and planning $140 million in investments to expand a Suncoast gaming and entertainment site in Durban. The company also hopes to build a new casino in Cape Town to replace a smaller one.
“We’ve done all the work, so we are waiting for the uptick to come,” said CEO Marcel Von Aulock of Tsogo, which derives about two-thirds of its profits from gaming and the rest from its hotels.
Gaming revenue in South Africa in 2014 increased to $1.5 billion, and Price Waterhouse Coopers projects it will top $2 billion by 2019, reported Africa-Me.com. PwC also anticipates significant growth in Nigeria and Kenya.
