Who Owns Whom

The South African Gambling Industry 2015

Juliet Gebbie | South Africa | 27 July 2015

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Report Coverage

The report on the South African Gambling sector describes the current conditions, the challenges facing local role players and factors influencing the success of the industry. The report also profiles 15 companies active in the sector, including market leader Sun International Ltd which derived almost R8.5bn of its 2014 revenue from its casinos, Galaxy Bingo, which owns the licensing rights for its subsidiaries’ gambling venues, and Gold Circle Racing & Gaming Group, which operates a network of 122 betting outlets.

South African Gambling Industry

This report focuses on the South African gambling industry, which generated an estimated R21.8bn in Gross Gambling Revenue (GGR) in 2013/2014. The sector, which includes sports betting, Limited Payout Machines (LPMs) and bingo, is dominated by the casino sector which currently contributes more than 75% to total GGR. As industry players paid R2.26bn in gambling taxes and levies in the last financial year and the entire sector has to date employed over 160,000 people, the gambling sector is an important one for the economy of the country.

Challenges and Opportunities

Although overall GGR increased by 4.3% in 2013/2014, stakeholders are concerned at the marked decrease from the 13.6% increase that was experienced during 2012/2013. Worsening economic conditions and the resultant decrease in disposable income, as well as proposed regulatory changes are expected to negatively affect future revenue. The competition offered by illegal gambling modes such as fah-fee, dog racing and particularly online gambling, continues to be a matter of concern. At the same time, advances in technology have resulted in an increase in online sports betting and the growth in popularity of LPMs and electronic bingo terminals (EBTs)

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 14
4.1. Local 14
4.1.1. Corporate Actions 19
4.1.2. Regulations & Government programmes 20
4.1.3. Enterprise Development and Social Economic Development 23
4.2. Continental 23
4.3. International 25
5. INFLUENCING FACTORS 26
5.1. Economic Environment 26
5.2. Labour Resources 27
5.3. Information Technology 28
5.4. Technology 29
5.5. Environmental Concerns 30
6. COMPETITION 30
6.1. Research and Development (R&D) 32
6.2. Innovation 32
7. SWOT ANALYSIS 33
8. OUTLOOK 34
9. INDUSTRY ASSOCIATIONS 34
REFERENCES 35
9.1. Publications 35
9.2. Websites 36
ORGANOGRAM 38
COMPANY PROFILES 40
BETTING WORLD (PTY) LTD 40
BINGO VISION (PTY) LTD 43
EGOLI GAMING (PTY) LTD 45
EMERALD SAFARI RESORT (PTY) LTD 47
GOLD CIRCLE (PTY) LTD 50
GRAND GAMING HOTSLOTS (RF) (PTY) LTD 53
GRAND PARADE INVESTMENTS LTD 55
NETBET (PTY) LTD 59
NORTHERN CAPE CASINO CONSULTANTS KAIRO (PTY) LTD 60
O L I M P (PTY) LTD 62
PEERMONT GLOBAL (PTY) LTD 63
PHUMELELA GAMING AND LEISURE LTD 68
SUN INTERNATIONAL LTD 72
TSOGO SUN HOLDINGS LTD 77
VUKANI GAMING CORPORATION (PTY) LTD 82