Who Owns Whom

The South African Gambling Industry 2016

Duncan Bekker | South Africa | 21 September 2016

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R 1 900.00(ZAR) estimated $ 120.93 (USD)*

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Report Coverage

The report on the Gambling industry focuses on the size of sector, where R358.4bn was wagered during the 2015/2016 financial period, recent developments and factors influencing the success of players in the formal sector. The report profiles 16 companies, ranging from the major casino operators to companies in the growing sports betting segment. These include online sports betting websites, Clickabet (Pty) Ltd, Netbet (Pty) Ltd t/a Sportingbet and Sunbet, part of Sun International.

The South African Gambling Sector

The South African gambling industry which includes casino gambling, sports betting, Limited Payout Machines (LPMs), the National Lottery and bingo achieved gross gambling revenue (GGR) of R26.3bn in 2016 and paid R2.8bn in taxes and levies. In the sector there are six casino operators, dominated by Tsogo Sun, Sun International and Peermont Global, 11,235 active LPMs and approximately 400 South African bookmaker outlets. Casinos employ 24,300 people and the industry as a whole, including non-gambling services such as hospitality and catering, indirectly supports more than 64,000 jobs.

A Regulated Sector

The industry is highly regulated with nine provincial gambling regulators responsible for the issuing of casino, bookmaker and LPM licences. Local gambling authorities fall under the purview of the National Gambling Board (NGB) and the Department of Trade and Industry (DTI). The National Gambling Policy which sets the direction for the future regulation of the industry and its segments was approved in April 2016 and the National Gambling Regulator (NGR) which will replace the NGB, is scheduled to begin operations in the next two years. Despite stringent regulations and fines of R10m or up to ten years in prison, illegal gambling activities at non-licensed venues persist. The Casino Association of South Africa (CASA) estimates that some R125m in potential gambling taxes and levies was lost to illegal online gambling alone in 2015.

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 21
4.1.2. Regulations 22
4.1.3. Enterprise Development and Social Economic Development 24
4.2. Continental 25
4.3. International 26
5. INFLUENCING FACTORS 27
5.1. Economic Environment 27
5.2. Labour 28
5.3. Technology, Research and Development (R&D) and Innovation 30
5.4. Environmental Concerns 31
6. COMPETITION 31
6.1. Barriers to Entry 32
7. SWOT ANALYSIS 33
8. OUTLOOK 34
9. INDUSTRY ASSOCIATIONS 34
10. REFERENCES 35
10.1. Publications 35
10.2. Websites 35
COMPANY PROFILES 37
BETTING WORLD (PTY) LTD 37
BINGO VISION (PTY) LTD 40
CLICKABET (PTY) LTD 42
EGOLI GAMING (PTY) LTD 43
EMERALD SAFARI RESORT (PTY) LTD 45
GOLD CIRCLE (PTY) LTD 47
GRAND PARADE INVESTMENTS LTD 50
ITHUBA HOLDINGS (RF) (PTY) LTD 54
NETBET (PTY) LTD 56
NORTHERN CAPE CASINO CONSULTANTS KAIRO (PTY) LTD 57
O L I M P (PTY) LTD 59
PEERMONT GLOBAL (PTY) LTD 61
PHUMELELA GAMING AND LEISURE LTD 66
SUN INTERNATIONAL LTD 71
TSOGO SUN HOLDINGS LTD 77
VUKANI GAMING CORPORATION (PTY) LTD 86