South Africa GGR Up; Concerns Remain

South Africa’s casino industry posted 3.5 percent growth year-on-year, welcome news after the first annual decline in 2017. But factors continue to cause uncertainty, including the economy and rampant online gaming.

Illegal ops “stealing from us all”

The casino industry in South Africa saw a 3.5 percent increase in gross gaming revenue—R18.5 billion (US$1.33 billion) compared to R17.8 billion in 2017. Last year marked the industry’s first contraction—1.8 percent—since casino gaming was legalized in 1997.

Despite the return to growth, experts say there’s lingering cause for concern, including a challenged economy and the proliferation of illegal online gaming sites.

According to CDC Gaming Reports, the sector is a valuable one for the country, with members of the Casino Association of South Africa paying R6.1 billion in taxes and levies each year and supporting more than 38,000 jobs.

But CASA warns that the factors that led to last year’s decline are only worsening. “Our members are committed to contributing to a better South Africa,” said CASA CEO Themba Ngobese. “Casinos attract investment and tourism to the country and the money members pay in taxes and levies is used to improve everything from education and healthcare to infrastructure and housing.

“One of our biggest concerns is the exponential growth of illegal gambling operations,” Ngobese said. “These illegal operators pay no tax or levies and contribute nothing to the South African economy, while putting players at risk of prosecution. As an industry, we once again urge law enforcement to take a tougher stance on these illegal operations, which are essentially stealing from us all.”

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