ANNUAL GAMBLINGSECTOR PERFORMANCEREPORTSOUTH AFRICAFINANCIAL YEAR 2015 i
ACKNOWLEDGEMENTS time, money or goodwill, arising fromThe following PLAs contributed to the the use, operation or modification of thecompilation of this report by submittingaudited provincial gambling statistics data or information, or for the failure toand information about market conduct: transmit a copy of any particular Eastern Cape Gambling and Betting Board Free State Gambling and Liquor Authority document. In using the information or Gauteng Gambling Board KwaZulu-Natal Gaming and Betting Board data, users assume the risk for relying Limpopo Gambling Board Mpumalanga Gambling Board on such data or information, and further Northern Cape Gambling Board North West Gambling Board agree to indemnity, defend, and hold Western Cape Gambling and Racing Board harmless the NGB or the dti, and itsDISCLAIMER employees, officers andThe National Gambling Board (NGB),nor the Department of Trade and representatives for any and all liabilityIndustry (the dti), do not guarantee orprovide any commercial warranties of any nature arising out of or resultingand/or guarantee the robustness for thepurpose of use, nor are any such from the lack of accuracy orwarranties to be implied with respect tothe information and data published correctness of the information or data,herein. In no event shall the NGB andthe dti, nor its employees, officers or or the use of the information or data.representatives become liable to usersof the data and information provided Further, in using this information orherein, or to any other party, for any data, the user acknowledges that theloss or damage, consequential or user is responsible for personallyotherwise, including but not limited to assessing the accuracy and reliability of the data or information provided, and that the images provided or copies thereof, are subject to error and omission, and are not guaranteed or warranted to be true, complete or correct.The data published herein is not for commercial purposes. No person, entity or user shall sell, give or receive for the purpose of selling or offering for sale, any portion of the information or data provided herein, nor may they use the information in a manner that is in violation of any law or regulation. ii
FOREWORD Further to this, the collection of detailed information per gambling operator,One of the key responsibilities of the province and mode enables the NGB toNational Gambling Board (NGB), as map the size and nature of the Southmandated by the National Gambling Act African gambling industry, as well as to(NGA), Act no 7 of 2004, Section monitor trends and growth in the varioius65(2)(e), is to monitor market conduct gambling sectors. The NGB hasand market share in the South African successfully managed to compilegambling industry. In doing so, the NGB comprehensive reports since FY2012 ongathers national gambling statistics and the status and growth of the gamblinginformation related to market conduct industry, as well as share the latestand market share from all Provincial trends with stakeholders in Government.Licensing Authorities (PLAs).This enables the NGB to publish audited The NGB has pleasure in sharing thestatistics annually on its website to keep latest trends related to gambling sectorits stakeholders and the public informed performance and especially nationalabout turnover, the generation of Gross gambling statistics and market conductGambling Revenue (GGR), the collection information as at the end of Financialof taxes/levies, as well as return to Year (FY) 2015 with the public in thisplayer. report for the first time. We trust that our stakeholders and the public will find the content informative, useful and beneficial. The Board would also like to extend its gratitude to all PLAs for submitting informaiton and statistics as required, without which this report would not have been possible. Ms Caroline Kongwa Accounting Authority iii
CONTENT PAGE Acknowledgements Ii Disclaimer ii Foreword iii Content iv Acronyms v Explanatory notes vi List of graphs viii Executive summary ix Snap shot of the gambling industry, FY15, Quarters 1, 2, 3 & 4 xi CHAPTER 1: INTRODUCTION 1 CHAPTER 2: CASINO SECTOR 3 CHAPTER 3: BETTING ON HORSE RACING AND SPORT SECTOR 11 CHAPTER 4: LIMITED PAYOUT MACHINE SECTOR 19 CHAPTER 5: BINGO SECTOR 25 CHAPTER 6: NATIONAL GAMBLING STATISTICS 30 CHAPTER 7: KEY TRENDS 40 iv
ACRONYMS Central electronic monitoring systemCEMS - Electronic bingo terminalEBT - Eastern CapeEC - Free StateFS - Financial yearFY - Gross gambling revenueGGR - GautengGT - KwaZulu-NatalKZN - LimpopoL- Limited payout machineLPM - MpumalangaMP - Northern CapeNC - National Gambling ActNGA - National Gambling BoardNGB - North WestNW - Provincial Licensing AuthorityPLA - QuarterQrt - Return to playerRTP - the Department of Trade and Industrythe dti - TurnoverTO - Western CapeWC - v
EXPLANATORY NOTES TERM EXPLANATIONBingo Bingo means a game played in whole or in part by electronic meansBookmaker that is played using cards or other devices; that are divided into spaces each of which bears a different number, picture or symbol; andCasino which are arranged randomly such that each card or similar deviceGambling contains a unique set of numbers, pictures or symbols; in which anmachine/ operator calls or displays a series of numbers, pictures or symbols inslot machine random order and the players match each such number, picture orused symbol on the card or device as it is called or displayed; and theinterchangeably player who is first to match all the spaces on the card or device, or who matches a specified set of numbers, pictures or symbols on theGross gambling card or device, wins a prize.revenue (GGR)Horse racing A bookmaker, bookie or turf accountant is a person or organisationLicenced (all that takes bets on various events or contingencies such as horsemodes and racing, football, rugby union or marriages, births, names, divorces andoutlets) even in extreme cases deaths etc. at agreed upon odds (fixed odds). A bookmaker may be licensed to operate on or off-course, that is at licensed premises, other than a race course. A casino is a facility which is licensed to house and accommodate certain types of licensed casino style slots and table gambling games. A slot machine, informally known as a fruit machine, is a casino gambling machine with three or more reels which spin when a button is pushed or a handle is pulled (older mechanical types). These slot machines are also known as one-armed bandits because of the one lever on the side of the machine (the arm) and because of their ability to leave the gamer penniless (bandit). The machine pays off based on patterns of symbols visible on the front of the machine when it stops. Slot machines are the most popular gambling method in casinos and constitute about 80% of the average casino's income. Gross gambling revenue is defined as the Rand value of the gross revenue of an operator in terms of turnover less winnings paid to players. Horse racing is the sport in which horses and their riders take part in races, typically with substantial betting on the outcome. Licensed is when a person or company is in possession of a valid licence, registration card or certificate allowing him/them to offer approved gambling activities within licensed premises to over 18 year old persons. vi
TERM EXPLANATIONLimited Payoutmachine (LPM) Limited Payout machine means a gambling machine outside of aReturn to player casino in respect of the playing of which the stakes and prizes are(RTP) limited.Route operator(RO) Return to player is an average achieved over a significant number of game plays and not each time the gambling machine is played (totalSite operator amount returned to players / total amount wagered by players).(SO) Route operator is a juristic person which is licensed to own andTable game operate limited Payout machines, maintain and effect the collection of money and paying of taxes and levies in respect of all machines underTaxes/ its licence.leviesTotalisator/Pari- Site operator is a natural or juristic person licensed to manage limitedMutuel betting Payout machines owned by a route operator on his licensed premisesused (also known as a site) and to make them available to be played byinterchangeably members of the public.Turnover (TO) In casinos, the term table game is used to distinguish games such as blackjack, craps, roulette and baccarat that are played on a table and operated by one or more live dealers like a croupier or poker dealer. Gambling tax levied by and collected by provincial licensing authorities. Totalisator is the name for the automated pool betting system which runs pari-mutuel betting, calculating payoff odds, displaying them, and producing tickets based on incoming bets. Parimutuel betting (from the French: Pari Mutuel) is a betting system in which all bets of a particular type are placed together in a pool; taxes and the \"house-take\" are removed, and payoff odds are calculated by sharing the net pool among all winning bets. Turnover is the rand value of money wagered. This includes \"recycling” which refers to amounts that are staked on more than one occasion). “TO” in the fixed odds/bookmaking environment is, however, different from other forms of gambling in that the amount of money crossing the table is NOT seen as turnover, because the amount of money staked / wagered / bet on an event is returned to the player should the player win the wager / bet, so a true description of turnover in fixed odds/bookmaking parlance is money wagered minus the stakes wagered on winnings bets = fixed odds/bookmaking turnover. vii
LIST OF GRAPHS LIST OF GRAPHS PageGraph 1: Number of operational casinos per province, FY15, as at 31 March 2015 3Graph 2: Number of operational slots in casinos per province, FY15, as at 31 March 2015 4Graph 3: Number of operational tables per province, FY15, as at 31 March 2015 5Graph 4: Number of operational positions in casinos per province, FY15, as at 31 March 2015 6Graph 5: Turnover casinos per province, FY15, Quarters 1, 2, 3 & 4 7Graph 6: GGR casinos per province, FY15, Quarters 1, 2, 3 & 4 9Graph 7:Taxes/levies casinos per province, FY15, Quarters 1, 2, 3 & 4 10Graph 8: Number of licensed operational bookmakers, totalisator and bookmaker outlets, 12 FY15, as at 31 March 2015 14Graph 9: Turnover betting on horse racing and sport per province, FY15, Quarters 1, 2, 3 & 4 15Graph 10: GGR betting on horse racing and sport per province, F15, Quarters 1, 2, 3 & 4 16Graph 11: Trend in GGR, betting on horse racing and sport, FY09 – FY15 17Graph 12: Taxes/levies collected relevant to, betting on horse racing and sport per province, 18 FY15, Quarters 1, 2, 3 & 4Graph 13: Trend in taxes/levies collected relevant to betting on horse racing and sport, FY09 20 21 – FY15 23Graph 14: Number of installed LPMs per province, FY15, as at 31 March 2015 24Graph 15: Turnover LPMs per province, FY15, Quarters 1, 2, 3 & 4 26Graph 16: GGR LPMs per province, FY15, Quarters 1, 2, 3 & 4 27Graph 17: Taxes/levies LPMs per province, FY15, Quarters 1, 2, 3 & 4 28Graph 18: Number of operational bingo outlets per province, FY15, as at 31 March 2015 29Graph 19: Turnover bingo per province, FY15, Quarters 1, 2, 3 & 4 31Graph 20: GGR bingo per province, FY15, Quarters 1, 2, 3 & 4 31Graph 21: Taxes/levies bingo per province, FY15, Quarters 1, 2, 3 & 4 32Graph 22: Turnover per gambling mode, all modes, FY15, Quarters 1, 2, 3 & 4 33Graph 23: Turnover per province, all provinces, FY15, Quarters 1, 2, 3 & 4 34Graph 24: GGR per gambling mode, all provinces, FY15, Quarters 1, 2, 3 & 4 36Graph 25: GGR per province, all modes, FY15, Quarters 1, 2, 3 & 4 37Graph 26: Trend in GGR, all modes, FY02 – FY15Graph 27: Increase in GGR, all modes (FY13 – FY15) 38Graph 28: Increase in the number of positions in the casino, LPM and bingo sectors (FY13 – 39 39 FY15)Graph 29: Taxes/levies per gambling mode, all provinces, FY15, Quarters 1, 2, 3 & 4Graph 30: Taxes/levies per province, all modes, FY15, Quarters 1, 2, 3 & 4Graph 31: Trend in taxes/levies per province, all modes, FY02 – FY15EXECUTIVE SUMMARY viii
The National Gambling Board (NGB) is mandated in terms of theNational Gambling Act (NGA), Act no 7 of 2004, Section 65(2)(e) tomonitor gambling performance, within the gambling sector in theRepublic of South Africa. In order to execute this directive, the Boardgathers relevant information from all Provincial Licensing Authorities(PLAs) in terms of the number of operators, outlets, gambling positions,turnover, gross gambling revenue generated and taxes/levies collectedwithin each province. This report aims to provide an overview of, and toindentify trends, per gambling sector and province, based on auditedinformation relevant to the Financial Year (FY) 2015 (1 April 2014 to 31March 2015). It is imperative to take heed of the fact that, the Boardcannot be held responsible for the accuracy and correction of informationsupplied by the submitting bodies/institutions.Current statistics reflect an apparent saturation in the casino market.Only one casino in Northern Cape was added during the reported period.A decrease in the number of operational casino positions was recordedin the Eastern Cape, and Limpopo province accounted for moreoperational LPM than casino positions. The bingo & Limited PayoutMachine (LPM) sectors, and betting on sport offered by bookmakershave been identified by most of the PLA’s as areas for growth andexpansion.The highest increases in operational gambling positions and GGRgenerated, were recorded in the bingo industry (an increase of 17.8% inthe number of operational bingo positions and 52.5% in GGR generatedfrom FY 2014 to FY 2015).These increases are due in the main, to theroll out of bingo in KwaZulu-Natal and an increase in the number of bingopositions in Eastern Cape.Substantial growth has also been reflected in the Limited PayoutMachine (LPM) sector. Increases in the roll out of active LPMs was alsorecorded in almost all provinces, constituting a 10.7% increase in thenumber of operational LPM positions, and 19.6% increase in GrossGambling Revenue (GGR) recorded from Financial Year (FY) 2014 to2015. More active LPMs than operational casinos positions wererecorded in Limpopo. ix
With regard to betting on horse racing, and sport, offered by bookmakersand totalisators, the highest GGR was generated as a result of betting onsport offered by bookmakers. However, based on statistics, lesstaxes/levies were collected from this sector relative, to betting on horseracing in general and betting on sport offered by totalisators.The generation of GGR increased by 9.6% from R21,8 billion in FY2014to R23,9 billion in FY2015, whereas the collection of taxes/leviesincreased by 10.7% from R2,2 billion in FY2014 to R2,5 million inFY2015. Casinos and Gauteng province, are the gambing mode, andprovince, generating the most GGR, and from which the highest amountsof taxes/levies were also collected. Growth (increases in the number ofoperational gambling positions) was especially recorded in Gauteng,KwaZulu-Natal, Eastern Cape, Limpopo, Northern Cape and Free Stateprovinces.This report reflects a summary of key trends and statistics. Kindly refer tothe website for more information especially related to statistics in termsof turnover, Gross Gambling Revenue generated and taxes/leviescollected per province and gambling mode, as well as trends over time. --- oOo --- x
SNAP SHOT OF THE GAMBLING INDUSTRYFY15, QUARTERS 1, 2, 3 & 4 Variable Quarter 1 Quarter 2 Quarter 3 Quarter 4 36 36 37 37Number of operationalcasinos 22 215 23 236 23 575 23 708Number of operational 907slots (casinos) 923 936 916Number of operational 33 134tables (casinos) 33 363 33 468 33 360Number of operational 400gambling positions 221 399 400 402(casinos) 383Operational totalisator 2 031 210 214 214outlets 9 744 377 397 435Operational bookmakers 18Operational bookmaker 4 557 2 007 2 049 2 071outletsOperational LPM site R 77 942 705 997 9 667 9 939 10 279operators 21 25 26Installed LPMs R 5 745 870 179Operational bingo outlets 5 369 6 414 5 369Operational bingo R 583 002 901positions R 76 446 190 289 R 84 383 244 391 R 80 945 151 185National gamblingstatistics: Turnover R 5 992 679 515 R 6 180 179 397 R 5 975 205 178Total: R 319 717 291 862National gambling R 603 670 780 R 640 618 068 R 649 391 890statistics:GGR generatedTotal: R 23 893 934 269National gamblingstatistics: taxes/leviescollectedTotal: R 2 476 683 639 xi
QUARTERLY GAMBLING INDUSTRY REPORTAN OVERVIEWFINANCIAL YEAR 2015, QUARTER 1, 2, 3 & 4 (1 APRIL 2014 TO 31 MARCH 2015)CHAPTER 1: INTRODUCTION1.1 The National Gambling Board (NGB) is mandated by the National Gambling Act (NGA), Act no 7 of 2004, Section 65(2)(e) to monitor market conduct and market share.1.2 NGB monitors market conduct i.e (number of gambling positions and outlets in the South African gambling sector, and also gathers and analyses national gambling statistics in terms of turnover (TO)), gross gambling revenue (GGR) and the collection of taxes/levies. The NGB website is updated with a detailed Power Point presentation annually, which is based on audited information representative of that financial year.1.3 The scope of this report covers information (market conduct and national gambling statistics) related to the following legalised gambling modes in South Africa (as regulated by the NGB) for quarters 1, 2, 3 & 4 of the Financial Year (FY) 2014/2015:1.3.1 Casinos (tables and slots);1.3.2 Betting on horse racing and sport (offered by bookmakers and totalisators, on and off course);1.3.3 Limited payout machines (LPMs); and1.3.4 Bingo (traditional and Electronic Bingo Terminals (EBTs)).1.4 Quarterly statistics are sourced from Provincial Licensing Authorities (PLAs). FY15 information in this report is based on audited data. 1
1.5 The board cannot be held responsible for the correctness of information (refer to the disclaimer).1.6 The information in this report is applicable to the period of 1 April 2014 to 31 March 2015 (referred to as FY 2014/2015), whereas quarters are representative of the following specific periods:1.6.1 Quarter 1: 1 April 2014 – 30 June 2014;1.6.2 Quarter 2: 1 July 2014 – 30 September 2014;1.6.3 Quarter 3: 1 October 2014 – 31 December 2014; and1.6.4 Quarter 4:1 January 2015 – 31 March 2015.1.7 The purpose of this report is to provide the Board and NGB Management with an overview regarding the status and performance of the South African gambling sector (excluding the National Lottery) in terms of market conduct and national gambling statistics (1 April 2014 to 31 March 2015), as well as trends over time. 2
CHAPTER 2: CASINO SECTOR2.1 Market conduct2.1.1 As at 31 March 2015 a total number of 37 casinos (a maximum of 40 licenses is provided for in the national legislation) are operational in South Africa.2.1.2 Of the total casino market, the majority of the casinos are situated in Gauteng (7, 18.9%), followed by Western Cape and KwaZulu-Natal each hosting 5 casinos (13.5% respectively) as reflected in Graph 1 below. One additional casino became operational in Northern Cape during the FY2015 period.Graph 1: Number of operational casinos per province, FY15, as at 31 March 2015 Number of operational casinos per province as at 31 March 2015 4 4 7 Gauteng 10.8% 10.8% 18.9% 3 5 Western8.1% 13.5% Cape KZN Mpumalanga 4 Limpopo10.8% 5 North West 2 3 13.5% Northern 5.4% 8.1% Cape Eastern Cape Free StateTotal: 37 3
2.1.3 One operational casino in Northern Cape was added during FY15. Gauteng accounts for the highest number of licensed operational slots in casinos (9 137, 38.5%), followed by Western Cape (3 769, 15.9%) and KwaZulu-Natal (3 768, 15.9%). The hereto recorded number of operational slot machines has remained relatively stable with only a slight increase of 1.3% from 22 919 in FY13 to 23 209 in FY14, and an increase of 2.2% (23 708) to FY15 (as at 31 March 2015). The increase can be attributed to the increase in the number of operational slot machines in almost all provinces, except Mpumalanga, North West and Free State, as reflected in Graph 2 below.Graph 2: Number of operational slots in casinos per province, FY15, as at 31 March 2015Number of operational slots in casinos per province, FY15, as at 31 March 2015 605 2 088 893 9 137 2.6% 8.8% 3.8% 38.5% 1 698 Gauteng 7.2% Western564 Cape2.4% KZN1 186 Mpumalanga 5.0% Limpopo3 768 3 76915.9% 15.9% North WestTotal: 23 708 Northern Cape Eastern Cape Free State 4
2.1.4 Gauteng accounts for the highest number of operational tables (324, 35.4%), followed by KwaZulu-Natal (154, 16.8%) and North West (123, 13.4%) as at 31 March 2015, as reflected in Graph 3 below. Overall the number of operational tables increased by 8.3% from 832 in FY13 to 901 in FY14 (4th quarter). Since then, by the 31st March 2015, an increase of 1.7% was recorded in the number of tables (916). This increase is attributed to a slight increase in the number of operational tables in Gauteng, Western Cape, Kwazulu-Natal, Eastern Cape and Free State.Graph 3: Number of operational tables per province, FY15, as at 31 March 2015 Number of operational tables in casions per province, FY15, as at 31 March 2015 17 69 37 324 Gauteng 1.9% 7.5% 4.0% 35.4% Western 123 114 Cape13.4% 12.4% KZN 24 Mpumalanga2.6% Limpopo 54 5.9% North West 154 Northern 16.8% Cape EasternTotal: 916 Cape Free State2.1.5 As at 31 March 2015, Gauteng has the highest number of casinos in South Africa (7 out of 37 operational casinos) and also accounts for the highest number of operational gambling positions in casinos (13 673, 41.0%), followed by KwaZulu-Natal (5 924, 17.8%) and Western Cape (4 453, 13.3%). 5
2.1.6 The number of operational gambling positions in casinos increased by 3.3% from Quarter 4, FY13 (30 831) to Quarter 4, FY14 (31 860) mainly as a result of the increase in the number of operational positions in all provinces except in Northern and Eastern Cape. An increase of 4.7% is reflected in the period between FY14 (31 860 positions as at 31 March 2014) to FY15 (33 360 positions as at 31 March 2015). This difference is due to the increase of operational positions in almost all provinces, except Mpumalanga, North West and Eastern Cape. (Refer to Graph 4 below).Graph 4: Number of operational positions in casinos per province, FY15, as at 31 March 2015 Number of operational positions in casinos per province, FY15, as at 31 March 2015 707 2 157 1 360 13 673 2.1% 6.5% 4.1% 41.0% 2 436 7.3% 4 453 Gauteng 13.3% Western Cape708 KZN2.1% Mpumalanga Limpopo1 942 North West5.8% Northern Cape Eastern Cape 5 924 Free State 17.8%Total: 33 360 6
2.2 Casino sector gambling statistics2.2.1 Turnover (money wagered), GGR generated and taxes / levies collected per province in casinos in FY15, Quarters 1, 2, 3 & 4i The total Rand value of money wagered in casinos in FY15 during quarters 1, 2, 3 & 4 was R 252 416 344 194. This amount represents 78.9% of the total turnover (money wagered) in all gambling modes, compared to money wagered at licensed betting on horse racing and sport, LPM and bingo outlets.ii Gauteng has the highest number of casinos compared to other provinces resulting in the highest amount of money wagered at these gambling venues (43.8%). This is followed by money wagered in KwaZulu-Natal casinos (19.1%) and Western Cape (15.7%) as reflected in Graph 5 below.Graph 5: Turnover casinos per province, FY15, Quarters 1, 2, 3 & 4 Turnover casinos per province, FY15, Quarters 1, 2, 3 & 4 R 18 694 863 146 Gauteng Western R 3 220 026 913 7.4% R 7 435 263 197 Cape 1.3% KZN 2.9% R 110 457 632 MpumalangaR 7 346 473 622 889 Limpopo 2.9% 43.8% North West NorthernR 5 628 774 744 Cape Eastern Cape2.2% Free StateR 11 825 614 509 7 4.7% R 48 287 725 121 R 39 519 970 053 19.1% 15.7%Total TO: R 252 416 344 194
2.2.2 Gross Gambling Revenue (GGR) generated in the casino sector per province, FY15, Quarters 1, 2, 3 & 4i The total Rand value of GGR generated in casinos during FY15 during quarters 1, 2, 3 & 4 was R 17 234 928 081. This amount represents 72.1% of the total amount of GGR generated by all gambling modes compared to GGR generated in the betting on horse racing and sport, LPM and bingo sectors. A 0.6% increase in GGR has been recorded for the period between FY13 (R 16 404 078 723) to FY14 (R 16 497 594 915), and a 4.5% increase noted to FY15 (R 17 234 928 081). An increase of 2.4% was reflected from FY15, Quarter 1 (R 4 154 546 918) FY15 to Quarter 2 FY15 (R 4 255 511 223), 5.8% increase from Quarter 2 to Quarter 3 FY15 (R 4 501 324 673) and 4.0% decrease from Quarter 3 to Quarter 4 FY15 (R 4 323 545 268), as reflected in Graph 8. The overall increase in the generation of GGR is attributed to the increase of operational positions particularly in Gauteng, Western Cape, KwaZulu-Natal, Limpopo, Northern Cape (new operational casino) and Free State.ii Gauteng has the highest number of casinos compared to other province resulting in the highest amount of GGR generated in these gambling venues (41.5%), followed by GGR generated in KwaZulu-Natal casinos (18.6%) and Western Cape (16.0%) as reflected in Graph 6 below. 8
Graph 6: GGR casinos per province, FY15, Quarters 1, 2, 3 & 4 GGR casinos per province, FY15, Quarters 1, 2, 3 & 4 R 1 196 721 098 6.9% R 408 843 682 2.4% R 7 155 531 189 R 210 429 175 41.5% 1.2%R 1 176 916 5046.8%R 370 308 819 2.1%R 763 947 943 Gauteng 4.4% Western Cape KZNR 3 200 352 698 R 2 751 876 975 Mpumalanga 18.6% 16.0% Limpopo North WestTotal GGR: R 17 234 928 081 Northern Cape Eastern Cape Free State2.2.3 Taxes/levies collected by PLAs from the casino sector per province in FY15, Quarters 1, 2, 3 & 4i The total Rand value of taxes/levies collected by PLAs from the casino sector in FY15 during quarters 1, 2, 3 & 4 was R 1 791 214 932. This amount represents 72.3% of the total amount of taxes/levies collected from all gambling modes (inclusive of betting on horse racing and sport, LPMs and bingo). An increase of 3.9% in taxes/levies collected for the period from FY13 (R 1 578 594 016) to FY14 (R 1 639 968 977) was reflected. An increase of 1.7% from FY15, Quarter 1 (R 424 365 807) to FY15 Quarter 2 (R 431 644 511), an increase of 6.5% between FY15, Quarter 2 to FY15, Quarter 3 (R 459 648 065), and an increase of 3.5% to Quarter 4 FY15 (R 475 556 549) was recorded. 9
ii Gauteng accounts for the highest number of casinos by comparison with the other provinces resulting in the highest amount of taxes/levies collected from these gambling venues (38.1%), followed by Western Cape (22.8%) and KwaZulu-Natal (21.1%%) as reflected in Graph 7 below.Graph 7: Taxes / levies casinos per province, FY15, Quarters 1, 2, 3 & 4 Taxes/levies casinos per province, FY15, Quarters 1, 2, 3 & 4 R 16 817 522 R 98 118 992 Gauteng 0.9% 5.5% R 28 619 058 Western R 91 445 627 1.6% Cape 5.1% KZN R 683 308 387R 31 467 448 38.1% Mpumalanga 1.8% LimpopoR 54 929 152 3.1% North WestR 377 445 249 Northern 21.1% Cape Eastern CapeTotal taxes/levies: R1 791 214 932 R 409 063 498 22.8% Free State 10
CHAPTER 3: BETTING ON HORSE RACING AND SPORT SECTOR3.1 Market conduct3.1.1 Gold Circle is the totalisator operator in KwaZulu-Natal, and Phumelela in Gauteng, Mpumalanga, Limpopo, North West, Northern Cape, Eastern Cape and the Free State. Kenilworth Racing (totalisator) is operating in Western Cape; however, Phumelela currently manages the Western Cape racing operations on behalf of the Kenilworth Racing Trust. In essence, Phumelela has expanded its operations to include the Western Cape and has presence in eight provinces with the exception of KwaZulu-Natal. Trotco (Pty) Ltd t/a Ithotho is also licensed in KwaZulu-Natal as a totalisator and a racecourse operator. Telebet call centres are located in Gauteng and Eastern Cape. Licensed bookmakers are located in all the provinces throughout the Republic. Bets can be placed on horse racing and sport (on and off course), as well as on any other legal contingency.3.1.2 Gauteng accounts for the highest number of licensed operational bookmakers (91, 42.5%), followed by KwaZulu-Natal (53, 24.8%) and Western Cape (32, 15.0%). The highest number of licensed operational bookmaker outlets are situated in the Western Cape (158, 36.3%), followed by Gauteng (91, 20.9%) and KwaZulu-Natal (78, 17.9%). Gauteng accounts for the highest number of licensed operational totalisator outlets (141, 35.6%), followed by KwaZulu-Natal (118, 29.8%) and Western Cape (57, 14.4%) – refer to Graph 8 below. 11
Graph 8: Number of licensed operational bookmakers, totalisator and bookmaker outlets FY15, as at 31 March 2015Number of operational bookmakers, totalisatorand bookmaker outlets per province, FY15, as at 31 March 2015 Free State 56 17 Eastern CapeNorthern Cape 22 9 27 North West Limpopo 121 Mpumalanga 33 15KwaZulu-NatalWestern Cape 18 40 8 Gauteng 14 32 11 53 78 118 9911 57 158 32 139 0 50 100 150 200 Gaute West KwaZ Mpu Limpo North North Easte Free ng ern ulu- malan po West ern rn State Cape Natal Cape ga CapeOperational totalisator 139 57 118 14 18 15 2 22 17 outletsOperational bookmaker 91 158 78 32 40 3 1 27 5 outletsOperational bookmakers 91 32 53 11 8 3 1 9 6 12
3.2 Betting on horse racing and sport sector gambling statistics It is important to note that as far as Eastern Cape statistics are concerned, figures for betting on horse racing are inclusive of betting on sport. Unfortunately no splits are available, and therefor, these values and percentage should be read with due caution.3.2.1 Turnover (Rand value of money wagered, minus monies staked on winning bets which were subsequently struck and returned = TO in the fixed odds / bookmaking environment) per province, FY15, Quarters 1, 2, 3 & 4i The total Rand value of money wagered in the betting on horse racing and sport sector during FY15, Quarters 1, 2, 3 & 4 was R 29 600 405 730. This amount represents 9.3% of all turnover (money wagered) relevant to all gambling modes, by comparison to money wagered at licensed casinos, LPM and bingo outlets.ii Gauteng accounts for the highest amounts of money wagerd in the betting on horse racing and sport industry (63.6%) compared to other provinces. Monies wagered in the KwaZulu-Natal betting on horse racing and sport sector (14.0%) and also in the Western Cape (13.3%) were considerably less than in Gauteng, as reflected in Graph 9 below. 13
Graph 9: Turnover betting on horse racing and sport per province, FY15, Quarters 1, 2, 3&4 Turnover betting on horse racing and sport per province, FY15, Quarters 1, 2, 3 & 4 R 321 492 773 R 70 870 521 Gauteng R 816 48313.13%5 0.2% R 309 818 957 Western Cape 1.0% KZN 2.8% R 607 833 294 Mpumalanga 2.1% Limpopo R 548 047 876 North West 1.9% Northern Cape Eastern Cape R 4 146 466 390 Free State 14.0% R 3 951 372 026 R 18 828 020 13.3% 559 63.6%Total TO: R 29 600 405 7303.2.2 Gross gambling revenue generated in the betting on horse racing and sport sector per province in FY15, Quarters 1, 2, 3&4i The total Rand value of GGR generated in the betting on horse racing and sport sector during FY15, Quarters 1, 2, 3 & 4 was R 3 462 994 717. This amount represents 14.5% of the total amount of GGR compared to the other legalised gambling sectors (casino, LPMs and bingo sectors).ii Gauteng accounts for the highest number of licensed operational totalisator outlets and bookmakers compared to other provinces therefore resulting in the highest amount of GGR being generated in this province (49.1%). However, Western Cape accounts for the highest number of operational bookmaker outlets. GGR generated in the KwaZulu-Natal betting on horse racing and sport sector represents 20.6%, and Western Cape 11.3%, as reflected in Graph 10 below. 14
iii GGR increased by 9.1% from R 2 596 845 092 in FY13 to R 2 834 103 394 in FY14, and by 22.2% to FY15 (R 3 462 994 717).iv A consistantly progressive increase in GGR was generated by bookmakers offering sports betting (Graph 11 below). In this regard, GGR increased by 51.7% from FY12 to FY13, by 36.0% from FY13 to FY14 and by 59.9% to FY15. By comparison a decrease of 32.3% from FY13 to FY14 was recorded, but, then, an increase of 38.9% to FY15, Quarter 4, in GGR was generated by totalisators offering sports betting. Betting on horse racing offered by bookmakers increased by 8.4% from FY13 to FY14 and by 10.4% to FY15. Betting on horse racing offered by totalisators increased by only 2.2% from FY13 to FY14, and decreased by 2.2% to FY15. The highest increase in the generation of GGR from FY14 to FY15 (by 59.9%) was generated by bookmakers offering betting on sport. In monetary value, bookmakers offering betting on sport also generated the highest amounts of GGR during FY15.Graph 10: GGR betting on horse racing and sport per province, FY15, Quarters 1, 2, 3 &4GGR betting on horse racing and sport per province,FY15, Quarters 1, 2, 3 & 4 Gauteng R 17 380 095 R 169 762 110 Western 0.5% 4.9% R 82 926 043 Cape 2.4% KZN R 79 460 206 R 1 699 551 834 2.3% 49.1% Mpumalanga R 180 329 858 Limpopo 5.2% North WestR 129 093 358 3.7% R 712 617 365 R 391 873 847 Northern 20.6% 11.3% Cape Eastern CapeTotal GGR: R 3 462 994 717 Free State 15
Graph 11: Trend in GGR, betting on horse racing and sport, FY09 – FY15 Trend in GGR, betting on horse racing and sport, FY09 - FY15R 1 600 000 000 Bookmakers, Bookmakers, Totalisators, Totalisators,R 1 400 000 000 Horse racing Sports betting Horse racing Sports bettingR 1 200 000 000R 1 000 000 000 R 800 000 000 R 600 000 000 R 400 000 000 R 200 000 000 R0 Bookmakers, Horse racing Bookmakers, Sports Totalisators, Horse racing Totalisators, Sports betting bettingFY 09 R 440 988 115 R 1 066 258 328 R 42 038 484FY 10 R 377 957 987 R 80 484 490 R 1 058 082 653 R 31 259 332FY 11 R 419 579 088 R 1 167 008 013 R 42 418 390FY 12 R 477 583 160 R 165 802 602 R 1 197 266 316 R 44 078 515FY 13 R 663 367 356 R 1 087 051 664 R 161 294 882FY 14 R 718 915 378 R 295 931 592 R 1 111 365 062 R 109 251 620FY 15 R 793 930 124 R 1 087 285 775 R 151 752 708 R 433 650 582 R 657 721 132 R 894 571 335 R 1 430 026 1123.2.3 Taxes / levies collected by PLAs from the betting on horse racing and sport sector per province in FY15, Quarters 1, 2, 3 & 4i The total Rand value of taxes/levies collected by PLAs from the betting on horse racing and sport sector during FY15 (Quarters 1, 2, 3 & 4) was R 342 928 734. This amount represents 13.8% of the total amount of taxes/levies collected from all gambling modes (inclusive of casinos, LPMs 16
and bingo). The collection of taxes/levies increased by 12.4% from R 293 598 897 in FY13 to R 330 031 378 in FY14, and by 3.9% to R 342 928 734 in FY15.ii Gauteng accounts for the highest number of licensed operational totalisator outlets and bookmakers compared to other provinces therefore resulting in the highest amount of taxes collected in this province (40.4%), followed by KwaZulu-Natal (32.3%) and Western Cape (14.8%) as reflected in Graph 12 below. Graph 12: Taxes/levies collected relevant to betting on horse racing and sport per province, FY15, Quarters 1, 2, 3 & 4Taxes/levies collected relevant to betting on horseracing and sport per province, FY15, Quarters 1, 2, 3&4 R 1 389 575 Gauteng R 5 030 460 0.4% R 7 686 288 1.5% 2.2% R 7 865 821 Western 2.3% Cape R 10 183 502 KZN 3.0% R 138 387 161 40.4% MpumalangaR 11 034 099 3.2% Limpopo North West R 110 683 427 R 50 668 402 Northern 32.3% 14.8% Cape EasternTotal taxes/levies: R 342 928 734 Cape Free Stateiii The collection of taxes/levies from bookmakers offering sports betting increased by 37.3% from FY13 to FY14 and by 59.6% to FY15, compared to a decrease of 18.3% from FY13 to FY14 and an increase of 18.9% to FY15 from totalisators offering sports betting. In comparison, the collection of taxes/levies 17
of betting on horse racing offered by bookmakers increased by 15.5% from FY13 to FY14, but decreased with 10.4% to FY15. Taxes/levies of betting on horse racing offered by totalisators increased by only 2.0% from FY13 to FY14, and by 0.8% to FY15. The biggest increase in the collection of taxes from FY14 to FY15 (by 59.6%) was from bookmakers offering betting on sport. However, in monetary value, the highest amounts of taxes/levies were collected from bookmakers offering betting on horse racing. Refer to Graph 13 below.Graph 13: Trend in taxes/levies collected relevant to betting on horse racing and sport, FY09 – FY15 Trend in taxes/levies collected relevant to betting on horse racing and sport, FY09 - FY15 R 250 000 000 R 200 000 000 R 150 000 000 R 100 000 000 R 50 000 000 R0FY 09 Bookmakers, Bookmakers, Totalisators, Totalisators,FY 10 Horse racing Sports betting Horse racing Sports bettingFY 11 R 108 445 374 R 9 025 098 R 80 004 211 R 3 180 489FY 12 R 118 841 545 R 7 221 350 R 78 488 632 R 2 811 626FY 13 R 134 575 958 R 12 953 552 R 75 922 407 R 2 923 298FY 14 R 209 605 256 R 41 900 245 R 55 833 557 R 2 803 829FY 15 R 165 681 993 R 36 730 060 R 75 524 452 R 13 654 952 R 191 426 209 R 50 436 312 R 77 014 901 R 11 153 955 R171 539 696 R80 477 317 R77 654 988 R13 256 731 18
CHAPTER 4: LIMITED PAYOUT MACHINE SECTOR4.1 Market Conduct4.1.1 The main role players in the LPM sector can be defined in three specific categories, namely route operators, site operators and the Central Electronic Monitoring System (CEMS). Route operators are companies that are licensed to own, manage and operate LPMs throughout the country with the exception of the Northern Cape. Site operators are privately-owned hotels, pubs or eating establishments, totalisator or bookmaker outlets which may be situated throughout the country. CEMS is a centralised LPM monitoring and evaluation system operating on a long-term contract basis by Zonke Monitoring Systems, which is located in Johannesburg.4.1.3 The highest number of operational site operators are situated in Gauteng being a total of 469 (22.6%), followed by 450 (21.7%) in KwaZulu-Natal and 383 (18.5%) in Western Cape.4.1.4 KwaZulu-Natal has the highest number of licensed installed or active LPMs as at 31 March 2015 being 2 319 (22.6%), followed by 2 116 (20.6%) in Gauteng, whilst the Western Cape accounts for 1 748 (17.0%).4.1.5 The number of licensed, installed LPMs increased by 20.0% from 7 743 in FY13, Quarter 4 (as at 31 March 2013) to 9 288 in FY14, Quarter 4 (as at 31 March 2014), and by 10.7% to 10 279 in FY15, Quarter 4 (as at 31 March 2015). An increase in the number of active LPMs from FY14 to FY15 was recorded in all provinces, except North West. No LPMs are rolled out in Northern Cape. 19
Graph 14: Number of installed LPMs per province, FY15, as at 31 March 2015Number of installed LPMs per province, FY15, as at 31 March 2015 0 1 545 255 2 116 479 15.0% 2.5% 20.6%4.7% 1 748 Gauteng1 155 17.0%11.2% Western Cape 662 KZN 6.4% Mpumalanga 2 319 22.6% Limpopo North West Northern Cape Eastern CapeTotal: 10 279 Free State4.2 LPM gambling statistics4.2.1 Turnover (Rand value of money wagered) in the LPM sector per province in FY15, Quarters 1, 2, 3 & 4i The total Rand value of money wagered in the LPM sector during FY15, Quarters 1, 2, 3 & 4, was R 24 530 397 617. This amount represents 7.7% of all turnover (money wagered) represented by all gambling modes, in comparison to money wagered at licensed casinos, racing & betting and bingo outlets. 20
ii Gauteng and KwaZulu-Natal have the highest number of licensed operational site operators (469 and 450 respectively). Althoug KwaZulu-Natal accounts for the highest number of licensed installed (active) LPMs (2 319) compared to other provinces, the highest amounts of money wagered was in Western Cape (32.1%). This is followed by money wagered at LPM outlets in KwaZulu-Natal (23.4%) and Gauteng (17.8%) as reflected in Graph 15 below.Graph 15: Turnover LPMs per province, FY15, Quarters 1, 2, 3 & 4 Turnover LPMs per province, FY15, Quarters 1, 2, 3 & 4 R 470 598 272 R 2 739 386 R 339 951 058 R 4 374 002 1.9% 846 1.4% 557 17.8% R 1 738 907 0 11.2% Gauteng 426 Western Cape 7.1% KwaZulu-Natal MpumalangaR 1 248 223 Limpopo 111 North West 5.1% Northern Cape Eastern Cape R 5 733 314 R 7 886 013 Free State 677 670 23.4% 32.1%Total TO: R 24 530 397 617* No LPMs are rolled out in Northern Cape 21
4.2.2 Gross gambling revenue generated in the LPM sector per province in FY15, Quarters 1, 2, 3 & 4i The total Rand value of GGR generated in the LPM sector during FY15, Quarters 1, 2, 3 & 4, was R 2 079 338 389. This amount represents 8.7% of the total amount of GGR generated by all gambling modes and in comparison to GGR generated by the casino, racing & betting and bingo sectors. GGR in the LPM sector increased by 17.8% from R 1 476 449 382 in FY13 to R 1 738 648 662 in FY14, and by 19.6% to FY15 (R 2 079 338 389). This is mainly as a result of increases in the number of active LPMs in all provinces, except North West. LPMs have not yet been rolled-out in Northern Cape.ii Although KwaZulu-Natal has the highest number of licensed operational site operators (450, 21.7%) and installed LPMs (2 319, 22.6%) when compared to the other provinces, this province does not generate the highest amount of GGR in the LPM sector. Western Cape accounts for the highest amount of GGR generated at LPM outlets being 30.1% of the total. This is followed by GGR generated by LPMs in KwaZulu-Natal representing 22.8% and 17.6% in Gauteng as reflected in Graph 16 below. 22
Graph 16: GGR LPMs per province, FY15, Quarters 1, 2, 3 & 4 GGR LPMs per province, FY15, Quarters 1, 2, 3 & 4 R 44 080 344 0 R 238 798 594 R 30 501 731 2.1% 11.5% 1.5%R 177 800 283 R 365 126 598 Gauteng 8.6% 17.6% Western Cape KwaZulu-NatalR 123 054 060 R 626 323 442 Mpumalanga 5.9% 30.1% Limpopo North West R 473 653 339 Northern Cape 22.8% Eastern Cape Free State Total GGR: R 2 079 338 389* No LPMs are rolled out in Northern Cape4.2.3 Taxes/levies collected by PLAs from the LPM sector per province in FY15, Quarters 1, 2, 3 & 4i The total Rand value of taxes/levies collected by PLAs from the LPM sector during FY15, Quarters 1, 2, 3 & 4 was R 261 678 252. This amount represents 10.6% of the total amount of taxes/levies collected by PLAs from all gambling industries inclusive of the casino, racing & betting and bingo sectors. The collection of taxes/levies increased by 18.5% from R 180 968 947 in FY13 to R 214 492 336 in FY14, and by 22.0% to R 261 678 252 in FY15. 23
ii KwaZulu-Natal has the highest number of licensed site operators (450, 21.7%) and operational LPMs (2 319, 22.6%) by comparison with the other provinces, however, the highest amount of taxes/levies are not collected from this province. Western Cape accounts for the highest amount of taxes/levies collected by all PLAs from the LPM sector at 29.0%. This is followed by taxes/levies collected from the LPM sector in KwaZulu-Natal at 27.2% and 20.9% in Gauteng as reflected in Graph 17 below.Graph 17: Taxes / levies LPMs per province, FY15, Quarters 1, 2, 3 & 4 Taxes/levies LPMs per province, FY15, Quarters 1, 2, 3 & 4R 2 386 059 R 23 879 859 R 3 660 208 R 54 768 990 Gauteng 0.9% 9.1% 1.4% 20.9% Western Cape 0R 17 625 157 KwaZulu-Natal 6.7% MpumalangaR 12 305 406 R 76 004 572 Limpopo 4.7% 29.0% North West R 71 048 001 Northern Cape 27.2% Eastern Cape Free State Total taxes/levies: R 261 678 252* No LPMs are rolled out in Northern Cape 24
CHAPTER 5: BINGO SECTOR5.1 Market conduct5.1.1 Of the nine provinces in South Africa, bingo has been rolled out in Gauteng, Mpumalanga, North West, Eastern Cape and Kwazulu-Natal. A total number of 26 (out of 29 licensed) bingo halls were operational as at 31 March 2015 as reflected in Graph 18 below.5.1.2 Gauteng accounts for the highest number of licensed operational bingo positions or seats totaling 2 974 (55.4%) out of a national figure 5 369 licensed operational positions in FY15 (as at 31 March 2015), compared to KwaZulu- Natal (642, 12.0%), Mpumalanga (329, 6.1%), North West (420, 7.8%) and Eastern Cape (1 004, 18.7%).5.1.3 Overall, more electronic bingo terminal bingo positions or seats (3 212) were operational than traditional bingo positions or seat (2 157) as at 31 March 2015. Compared to FY13, 4th quarter (3 338), an increase of 36.5% in the number of operational bingo seats was reflected in FY14, Quarter 4 (4 557) and an increase of 17.8% to FY15, Quarter 4 (5 369). It is worth noting that a decrease of 5.9% in the number of operational bingo positions in Gauteng was recorded from FY14 to FY15, and a decrease of 6.7% in North West during the same period. Bingo was rolled-out in KwaZulu-Natal during FY15. An increase of 62.7% in the roll-out of operational bingo positions was noted in Eastern Cape from FY14 to FY15.5.1.4 It must be pointed out, as at 31 March 2015, more electronic bingo terminals than traditional bingo seats were operational in Gauteng, North West, Eastern Cape and Mpumalanga. By contrast, no electronic bingo terminals were operational in KwaZulu-Natal, but 642 operational traditional bingo positions were operational. 25
Graph 18: Number of operational bingo outlets per province, FY15, as at 31 March 2015Number of operational bingo outlets per province, F4Y15, as at 31 March 2015 15.4% 11 42.3% 6 Gauteng23.1% Mpumalanga North WestTotal outlets: 26 3 2 Eastern Cape 11.5% 7.7% KwaZulu-Natal 5.2 Bingo gambling statistics 5.2.1 Turnover (Rand value of money wagered) in the bingo sector per province in FY15, Quarters 1, 2, 3 & 4i The total Rand value of money wagered in the bingo sector during FY15, Quarters 1, 2, 3 & 4, was R 13 170 144 322. This amount represents 4.1% of all turnover (money wagered) representiative of all gambling modes, as compared to money wagered at licensed casinos, racing & betting and limited payout machine outlets.ii Bingo is offered for play in five provinces namely Gauteng, KwaZulu-Natal, Mpumalanga, North West and Eastern Cape. Gauteng accounts for the highest number of licensed and operational bingo outlets (11, 42.3%) and operational positions (2 974, 55.4%). The highest amount of money wagered was recorded in Gauteng being 70.0%, compared to Mpumalanga at 6.8%, North West at 4.6%, Eastern Cape at 18.6% and KwaZulu-Natal at 0.1% as reflected in Graph 19 below. 26
Graph 19: Turnover bingo per province FY15, Quarters 1, 2, 3 & 4Turnover bingo per province, FY15, Quarters 1, 2, 3 & 4R 2 447 687 587 R 7 523 062 18.6% 0.1%R 604 942 282 Gauteng 4.6% Mpumalanga R 892 192 246 R 9 217 799 144 6.8% 70.0% North WestTotal TO: R 13 170 144 322 Eastern Cape KwaZulu- Natal5.2.2 Gross gambling revenue generated in the bingo sector per province in FY15, Quarters 1, 2, 3 & 4i The total Rand value of gross gambling revenue generated by the bingo sector during FY15, Quarters 1, 2, 3 & 4, was R 1 116 673 081. This amount represents 4.7% of the total amount of GGR generated by all licensed gambling modes. GGR increased by 67.7% from R 436 770 125 in FY13 to R 732 321 861 in FY14, mainly as a result of the roll-out of bingo in North West and Eastern Cape provinces during FY14. An increase by 52.5% was recorded in the generation of GGR from FY14 to FY15 mainly as a result of the roll-out of bingo in KwaZulu- Natal.ii Gauteng accounts for the highest number of licensed operational bingo positions (2 974), resulting in the highest amount of GGR generated at 80.9%, compared to Mpumalanga at 4.9%, North West at 3.8%, Eastern Cape at 10.2% and KwaZulu-Natal at 0.2%, as reflected in Graph 20 below. 27
Graph 20: GGR bingo per province, FY15, Quarters 1, 2, 3 & 4 GGR bingo per province, FY15, Quarters 1, 2, 3 & 4R 42 405 247 R 113 844 090 R 2 220 642 3.8% 10.2% 0.2%R 55 252 509 Gauteng 4.9% Mpumalanga North WestTotal GGR: R 1 116 673 081 R 902 950 593 Eastern 80.9% Cape KwaZulu- Natal5.2.3 Taxes / levies collected by PLAs from the bingo sector per province in FY15, Quarters 1, 2, 3 & 4i The total Rand value of taxes/levies collected from the bingo sector by PLAs during FY15, Quarters 1, 2, 3 & 4, was R 80 861 720. This amount represents 3.3% of all taxes/levies collected from all gambling modes. The collection of taxes/levies increased by 17.7% from R 44 832 111 in FY13 to R 52 753 031 in FY14, and by 53.3% to FY15 (R 80 861 720).ii Gauteng accounts for the highest number of licensed and operational bingo outlets and positions, resulting in the highest amount of taxes/levies collected, namely 77.2% compared to Mpumalanga at 5.5%, North West at 3.1%, Eastern Cape at 14.1% and KwaZulu-Natal at 0.1% as reflected in Graph 21 below. 28
Graph 21: Taxes/ levies bingo per province, FY15, Quarters 1, 2, 3 & 4 Taxes/levies bingo per province, FY15, Quarters 1, 2, 3 & 4 R 2 544 224 R 11 394 622 R 66 619 3.1% 14.1% 0.1%R 4 420 201 Gauteng 5.5% Mpumalanga North West Eastern CapeTotal taxes/levies: R 80 861 720 R 62 436 055 KwaZulu- 77.2% Natal 29
CHAPTER 6: NATIONAL GAMBLING STATISTICS6.1 INTRODUCTION6.1.1 The purpose of this section is to provide an overview of national gambling statistics (per gambling mode and province) based on provincial gambling statistics submitted by all PLAs during the reporting periods as indicated.6.2 TURNOVER PER GAMBLING MODE AND PROVINCE, FY12 – FY156.2.1 A total amount of R 319 717 291 862 was wagered in FY15. Casinos accounted for the highest TO at 78.9% by comparison with all other gambling modes. Gauteng accounted for the highest amount of TO in respect of all gambling modes, the total percentage being 44.7% as compared to other provinces. Although Gauteng represented the highest amount of turnover relative to casinos (43.8%), betting on horse racing and sport (63.6%), and bingo (70.0%), the highest amount of money in the LPM sector was wagered in Western Cape (32.1%). The TO per gambling mode and province is reflected in Graphs 22 and 23 below. 30
Graph 22: Turnover per gambling mode, all provinces, FY15, Quarters 1, 2, 3 & 4Turnover per gambling mode, all provinces, FY15, Quarters 1, 2, 3 & 4 R 13 170 144 322 R 24 530 397 617 4.1% 7.7%R 29 600 405 730 9.3% Casinos BettingTotal TO: R 319 717 291 862 R 252 416 344 Bingo 194 LPM 78.9%Graph 23: Turnover per province, all modes, FY15, Quarters 1, 2, 3 & 4Turnover per province, all modes, FY15, Quarters 1, 2, 3 & 4 GautengR 3 290 897 434 R 24 191 756 537 Western 1.0% Cape 7.6% R 8 383 047 548 KZNR 8 743 506 950 2.6% R 142 877 4552.7% 148 Mpumalanga 44.7%R 8 184 165 505 2.6% LimpopoR 14 514 077 7424.5% North West R 58 175 029 250 R 51 357 355 749 Northern 18.2% 16.1% Cape Eastern CapeTotal TO: R 319 717 291 862 Free State 31
6.3 GROSS GAMBLING REVENUE PER GAMBLING MODE AND PROVINCE, FY12 – FY156.3.1 GGR increased by 13.6% from R18,4 billion in FY12 to R20,9 billion in FY13, by 4.3% to R 21,8 billion in FY14, and by 9.6% to R 23,9 billion in FY15. A total amount of R 23 893 934 269 referred to as GGR was generated during FY15.6.3.2 During FY15, as at 31 March 2015, casinos accounted for the highest GGR being 72.1% as compared to other gambling modes. Compared to all other provinces, Gauteng at a 42.4% share, accounted for the highest amount of GGR generated. The GGR per gambling mode and province is reflected in Table 11, and Graphs 24 & 25 below.Graph 24: GGR per gambling mode, all provinces, FY15, Quarters 1, 2, 3 & 4GGR per gambling mode, all provinces, FY15, Quarters 1, 2, 3 & 4 R 1 116 673 081 R 2 079 338 389 4.7% 8.7%R 3 462 994 717 14.5%Total GGR: R 23 893 934 269 R 17 234 928 081 Casinos 72.1% Betting Bingo LPM 32
Graph 25: GGR per province, all modes, FY15, Quarters 1, 2, 3 & 4GGR per province, all modes, FY15, Quarters 1, 2, 3 & 4 R 227 809 270 R 1 719 125 Gauteng 1.0% 892 R 10 123 160 7.2% R 522 271 456 214 Western R 1 342 862 2.2% 42.4% Cape 301 KZN 5.6% MpumalangaR 728 438 960 3.0% LimpopoR 1 071 347 R 3 770 074 North West 869 264 4.5% 15.8% Northern R 4 388 844 Cape 044 Eastern 18.4% Cape Free State Total GGR: R 23 893 934 269 33
MillionsGraph 26: Trend in GGR (all modes), FY02 – FY15 Trend in GGR (all modes) FY02 - FY15 R 25 000 R 20 000 R 15 000 R 10 000 R 5 000 R0 FY 01/0F2Y 02/0F3Y 03/0F4Y 04/0F5Y 05/0F6Y 06/0F7Y 07/0F8Y 08/F0Y9 09/1F0Y10/1F1Y 11/1F2Y12/1F3Y13/1F4Y14/15 At current prices 6 227 6 954 8 240 9 918 11 40013 52015 61815 92116 26817 14018 41720 91421 80323 8947.3.3 Analysis of the increase in GGR and gambling positions per gambling mode during the period FY15, Quarter 1 to Quarter 4), reflects the following trends as shown in Graphs 27 & 28 below:i Limited growth in the casino industry is noted whereby GGR generated in the casino industry increased by 0.6% from FY13 to FY14 and by 4.5% from FY14 to FY15. This is mainly as a result of the increase of operational casinos positions (from 31 860, FY14) to 33 360, FY15) in almost all provinces except Mpumalanga and Eastern Cape. A third new casino became operational in Northern Cape. 34
ii Significant increases in GGR generated have been recorded in the LPM industry - an increase by 17.8% from FY13 to FY14, and by 19.6% from FY14 to FY15. This is mainly as a result of increases in the roll out of active LPMs from FY14 (9 288) to FY15 (10 279) in all provinces, except North West (and Northern Cape where no LPMs are rolled out yet).iii The betting on horse racing and sport industry recorded noticeable increases in GGR generated i.e. by 9.1% from FY13 to FY14, and by 22.2% from FY14 to FY15. This is mainly as a result of major increases in the generation of GGR by bookmakers offering betting on sport.iv The bingo industry showed the highest growth in the generation of GGR, being reflected by an increase of 67.7% from FY13 to FY14, and by 52.5% from FY14 to FY15. This is mainly as a result of the roll-out of operational bingo positions in Eastern Cape during FY14, and KwaZulu-Natal during FY15. High increases in GGR generated is mainly as a result of an increase of 36.5% in the number of operational bingo seats from FY13 to FY14, and by 17.8% from FY14 to FY15. However, a decrease in the number of operational bingo positions was recorded in Gauteng and North West from FY14 to FY15. 35
Graph 27: Increase in GGR, all modes (FY13 – FY15) Increase in GGR (all modes): FY13 - FY1525 000 000 000 Increase in GGR:20 000 000 000 FY13 to FY14 = 4.3% FY14 to FY15 = 9.6% Increase in GGR: FY13 to FY14 = 0.6% FY14 to FY15 = 4.5%15 000 000 000 Increase in GGR (Betting):10 000 000 000 FY13 to FY14 = 9.1% 5 000 000 000 FY14 to FY15 = 22.2% Increase in GGR (Bingo): FY13 to FY14 = 67.7% FY14 to FY15 = 52.5% Increase in GGR (LPM): FY13 to FY14 = 17.8% FY14 to FY15 = 19.6% 0 GGR GGR GGR GGR LPM TOTAL Casino Betting BingoGGR, FY13 16 404 078 7 2 596 845 09 436 770 125 1 476 449 38 20 914 143 3GGR, FY14 1 738 648 66 21 802 668 8GGR, FY15 16 497 594 9 2 834 103 39 732 321 861 2 079 338 38 23 894 542 0 17 235 535 8 3 462 994 71 1 116 673 08 36
Graph 28: Increase in the number of gambling positions in the casino, LPM & bingosectos (FY13 – FY15) Increase in the number of operational gamblingpositions in the casino, LPM & bingo sectors: FY13 - FY15 Increase operational positions (Casinos): FY13 to FY14 = 3.3% FY14 to FY15 = 4.7%35 00030 00025 000 Increase operational20 000 Positions (LPMs):15 000 FY13 to FY14 = 20.0%10 000 FY14 to FY15 = 10.7% 5 000 Increase operational Positions (Bingo): FY13 to FY14 = 36.5% FY14 to FY15 = 17.8%0 Limited Bingo Casino payout machines 3 338Operational positions, FY13 30 831 7 743 4 557Operational positions, FY14 31 860 5 369Operational positions, FY15 33 360 9 288 10 279 37
6.4 TAXES/LEVIES CONTRIBUTION PER GAMBLING MODE AND PROVINCE, FY12 – FY156.4.1 Taxes/levies increased by 14.4% from R1,8 billion in FY12, to R2,1 billion in FY13, by 6.6% to R2,2 billion in FY14, and by 10.7% to R2,5 billion in FY15. A total amount of R 2 476 717 552 in taxes/levies was collected during FY15. During FY15, at 72.3%, casinos contributed the highest amount of taxes/levies paid by comparison with other gambling modes. At 37.9% Gauteng accounts for the highest amount of taxes/levies paid compared to all other provinces. Taxes/levies collected per gambling mode and province are reflectred in Table 12, and Graphs 29 & 30 below.Graph 29: Taxes/levies per gambling mode, all provinces, FY15, Quarters 1, 2, 3 & 4 Taxes/levies per gambling mode, all provinces, FY15, Quarters 1, 2, 3 & 4 R 261 678 252 10.6%R 80 861 720 3.3%R 342 928 734 13.8% Casinos R 1 791 214 932 Betting 72.3% Bingo LPMTotal taxes/levies: R 2 476 683 639 38
Graph 30: Taxes/levies per province, all modes, FY15, Quarters 1, 2, 3 & 4 Taxes/levies per province, all modes, FY15, Quarters 1, 2, 3 & 4 R 18 207 097 0.7% R 141 079 761 Gauteng 5.7% R 40 Western Cape R 101 406 369 145 086 KZN 1.6% Mpumalanga 4.1% R 938 900 592 R 59 276 107 37.9% 2.4% R 82 688 857 3.3% Limpopo R 559 243 297 North West 22.6% Northern CapeTotal taxes/levies: R 2 476 683 639 R 535 736 472 Eastern Cape 21.6% Free StateGraph 31: Trends in taxes/levies per province (all modes), FY02 – FY15Millions Trends in taxes/levies contribution per province (all modes) FY02 - FY15 R 2 500 R 2 000 R 1 500 R 1 000 R 500 R0 FY FY FY FY FY FY FY FY FY FY FY FY1 FY1 FY1 01/0 02/0 03/0 04/0 05/0 06/0 07/0 08/0 09/1 10/1 11/1 2/13 3/14 4/15 23456789012 At current prices 576 667 764 925 1 068 1 300 1 520 1 539 1 575 1 670 1 834 2 098 2 237 2 477 39
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