South Africa Casinos Fear Online Competition

South Africa’s 38 casinos continue to improve their bottom lines with steady revenue growth. However, many fear competition from illegal online operations and are demanding government action.

Revenues among South Africa’s 38 casino rose in 2016, despite fears from online competition, according to the “Survey of Casino Entertainment,” published by Casino Association of South Africa (CASA.) Gross gaming revenue was .35 billion, a 6.7 percent increase. Casinos paid 27 percent of their revenues in taxes. The top casinos in terms of revenue were the seven operated by Gauging. 

The total number of gaming tables in the country declined by 0.8 percent to 870, yet revenues for tables rose 15 percent. The number of slot machines increased by 1.4 percent to 23,735, and slots revenues increased by 4.6 percent. 

CASA says it is concerned about “the growth of illegal online gambling,” which it claims costs the government hundreds of millions in lost tax revenues. 

A spokesman for CASA, Themba Ngobese, said, “Our biggest concern is where people operate online gambling. It’s a growing problem. They operate under the guise of internet cafes.” He noted that CASA has urged the government to shut such “internet cafes” down, and even offered to assist.