South Africa’s gaming operators are hoping that their 24-billion Rand contribution to the economy will encourage the government to support a “flexible operating environment.”
The figures were released last week in the Casino Association of South Africa’s (Casa) “Survey of Casino Entertainment in South Africa -2015”, which also showed that casino revenues were 4.5 percent higher than last fiscal year and represented 72 percent of all money spent on gambling in the country.
The survey also revealed that casinos contributed R5.7 billion in taxes.
“Despite the economic downturn‚ the study reveals a slight growth in the casino industry and once again highlights the important contribution casinos make towards the South African economy‚” said Casa CEO Themba Ngobese in a statement that noted that the industry created 64,000 jobs.
“There is no doubt that our findings show the positive impact casinos have on South Africa’s economy‚” said Ngobese. “In light of this‚ we are calling upon policymakers to focus on providing a more flexible operating environment and eliminate policies which inhibit investment‚ to reconsider some of the proposals outlined in the draft National Liquor Policy and to stamp out illegal online gambling.”
The South African province with the highest gaming revenues was Gauteng, the country’s largest province in population, whose seven casinos took in R7.2 billion, according to the survey.
The second largest province, KwaZulu-Natal took in R3.2 billion, with Western Cape totaling R2.8 billion.
Industry experts warn that the industry will see slower growth due to a weaker economy, which could be exacerbated by illegal online gambling.
South Africa’s Department of Trade & Industry has said that it plans to increase the maximum number of casino licenses permitted from 40 to 41.
Horseracing was the highest grossing sports betting market last year at R1.9 billion, with sports betting revenues 57.6 percent higher than last year, reflecting the heavy wagering associated with the FIFA World Cup in 2014. This was aided by the launching of Sportpesa, which gives players the option to bet on individual football matches.
The report projected that the National Lottery will grow slightly less than 1 percent, reaching R2.33 in 2019 from R2.28 billion last year.
Bingo accounted for 5 percent of total gross gaming revenue at R1.1 billion, but rose from 3% in 2013 due to a 52.6 percent increase in bingo activity after it became available in KwaZulu-Natal and after operating for a year in Eastern Cape and North West. Industry experts expect bingo to be the fastest growing gaming category.
Total gaming revenues in South Africa are expected to reach R30.3 billion by 2019 from R23.9 billion last year, according to the publication.
A report by PricewaterhouseCoopers PWC said that the government’s decision to tax gamblers at 20 percent had kept gaming revenues from being more robust.
Pietro Calicchio of PWC wrote: “We anticipate slower economic growth to lead to slower growth in gross casino gambling revenues in South Africa and Nigeria, while Kenya’s casinos will face increasing competition from legal online and mobile gambling,”
The PWC report analyzed figures from South Africa, Nigeria and Kenya. South Africa had the largest overall gaming market at R17.2 million, with Nigeria at R497 million and R218 million in Kenya.
