South Africa’s casinos enjoyed healthy growth in 2016 but they continue to claim their biggest fear is the rise of online gambling.
This week saw the release of the latest Casino Association of South Africa (CASA) annual Survey of Casino Entertainment. CASA, whose members include Tsogo Sun, Sun International, Peermont Global and Caesars Entertainment’s London Clubs International brand, represents 36 of the country’s 38 casinos.
According to CASA, gross gambling revenue totaled R18.2b (US $1.35b) in the 2015-16 financial year, up 6.7% from last year’s figure and better than last year’s 3.4% growth rate. CASA members paid R4.9b in gaming taxes in 2015-16, representing 27% of their gaming revenue.
Gauteng remains the provincial casino revenue star, as its seven casinos generated nearly R7.5b, more than twice the R3.4b of its five competitors in KwaZulu-Natal. The Western Cape ranked third with R2.8b while the North West was well back at R1.35b.
The total number of active gaming tables fell 0.8% to 870, yet table revenue improved 15% to R3.8b. The number of slot machines rose 1.4% to 23,735, while slots revenue improved 4.6% to R14.3b.
CASA chairman Jabu Mabuza said the overall revenue gain came despite South Africa’s “negative economic outlook” but CASA remains “deeply concerned about the regulatory environment within which our members operate.”
Mabuza singled out the government’s decision to grant an additional casino license in the North West province this summer, a decision for which CASA believes there was “no reasonable justification.” CASA has instituted legal proceedings against this decision, which Mabuza said “promotes instability and negatively impacts investor confidence,” while setting “a very worrying precedent.”
Mabuza also protested the “fast-tracked roll out of electronic bingo terminals without a national regulatory framework to support it,” as well as curbs on gambling ads and changes to liquor laws, all of which “have the potential to severely hamstring the industry’s ability to grow.”
In keeping with previously stated policy, Mabuza said CASA is “particularly concerned with the growth of illegal online gambling.” CASA claims illegal gaming cost the government R140m in lost tax revenue in 2015-16.
Mabuza noted that the government has promised to impose harsh new penalties against illegal online gambling operators (and their punters) “but these are yet to materialize.” Mabuza strongly suggested the government “address this threat prior to the implementation of any new policy.”
Mabuza was likely cheering Friday’s action by the nation’s Hawks serious crime unit that took down some 20 venues offering illegal online gambling. At the time, National Hawks chief Mthandazo Ntlemeza promised that the raids were just the beginning and he appears to be a man of his word.
Wednesday brought news of an additional 10 sites in the North West being disrupted by the Hawks, resulting in the seizure of 198 computers and 281 slot machines. Ntlemeza warned illegal operators in other provinces that “the chips are down and it’s only a matter of time before we invade your town.”
