The survey found that CASA members generated R18.5 billion in gross gambling revenue in 2018, up 3.5% from the previous year. Members contributed R6.1 billion in taxes, up 3.6% and representing 37% of their value. They employ over 38,120 people and invested R143 million in corporate social investment programs including the South African Responsible Gambling Foundation. However, proliferation of illegal gambling establishments continues to erode revenue and lacks enforcement.

1. MEDIA BRIEFING - 30 OCTOBER 2018
#casasurvey2018

2. 01 About CASA
02 Purpose of the Survey
03 Gross Gambling Revenue
04 Member Tax Contribution
05 Casino Industry Value Add
06 B-BBEE
07
CASA’s view on illegal gambling
establishments

3. ABOUT CASA
CASA represents the interests of all but three of the 38 licensed
casinos operating in South Africa, as well as the public that it serves.
The association acts as an effective advocate for the casino industry
through championing good governance and constructively
contributing towards the development of fair public policy.
CASA’s members are Caesars Entertainment, Peermont Global, Sun
International and Tsogo Sun.
03

4. Survey of
Casino Entertainment
in South Africa
2018
04

5. 05
PURPOSE OF THE SURVEY
01
To provide insight and understanding
about the vital role the casino
industry plays in South Africa’s
economy.
02
To provide research-based data to
inform public policy about the industry
and address common misconceptions.

6. GROSS GAMBLING REVENUE
SURVEY FINDINGS

7. 07
GROSS GAMBLING REVENUE
CASA members generated R18.5 billion in GGR, up from
R17.8 billion in the previous year.
Increase of 3.5%
GGR was affected by economic conditions which negatively impacted consumers’
disposable income and revenue erosion from illegal gambling operations.

8. 08
GROSS GAMBLING REVENUE
VS
An increase of
2.4% from the
previous year.
R86 million spent on
compliance costs in the
year ended March 2018.
R84 million spent on
compliance costs in the
year ended March 2017.
Compliance costs remain high

9. 09
GGR – PROVINCIAL SPLIT
Member GGR by provinceMember GGR by province

10. 10
GROSS GAMBLING REVENUE
Overall GGR grew by 12.1% between the financial years 2014 and 2018.
• Gauteng is still the largest contributor with R8 billion –
increased by 8.9% compared to last year.
• Biggest loss of GGR experienced by Limpopo – down by 8.9%
from the previous year.

11. MEMBER TAX CONTRIBUTION
SURVEY FINDINGS 2018

12. 12
MEMBER TAX CONTRIBUTION
• R6.1 billion total tax contribution towards local, provincial
and national levels of government, up from R5.9 billion in the
previous year.
• Total tax contribution by CASA members represents 37% of the
value generated by them.
Total tax contribution increase of
3.6%

13. 13
TAX CONTRIBUTION
**Breakdown
Gambling taxes / levies
R1.9 Billion
VAT
R2 Billion
Corporate taxes
R1.0 Billion
Other taxes and levies
R1.2 Billion

14. 14
TAX CONTRIBUTION
Province Total Tax Contribution 2018
1 Gauteng R1.7 billion
2 KwaZulu-Natal R785 million
3 Western Cape R715 million
4 Eastern Cape R214 million
5 North West R199 million
6 Mpumalanga R134 million
7 Limpopo R83 million
8 Free State R83 million
9 Northern Cape R31 million
Gambling Taxes/Levies
and VAT Contribution
by Province

15. 15
CAPEX
Capital
expenditure is up
by 38%
• R2.7 billion in capital expenditure for the year ended March
2018.
• That’s 14.5% of GGR.
• An increase of 38% from R1.96 billion last year.

16. VALUE ADDED BY CASA MEMBERS
SURVEY FINDINGS

17. 17
VALUE ADDED BY CASA MEMBERS
Disbursement of value
added by CASA
member to
stakeholders

18. 18
VALUE ADDED BY CASA MEMBERS
Value add by the
casino industry slightly
decreased
• R16.4 billion in value from their activities, down from last year
where R16.5 billion was generated.
• R7.7 billion in overhead costs in the year 2017/18
compared to R5.8 billion in the year 2016/17.
• Government received 37% and employees received 23% of the
value i.e. 60%.
• R143 million invested into CSI programmes, with contribution
towards the South African Responsible Gambling Foundation
NPC being R15.6 million.

19. 19
A socially responsible industry with significant contributions
• Internationally recognised programme
• Addresses issue of problem gambling by providing FREE
counseling support and advice
• Funded by the gambling industry, the casino industry
being the biggest funder
South African Responsible Gambling Foundation
NPC
• CSI contribution = R143 million for the year
ended March 2018
• Total spend of R739 million in the last five
years
Corporate Social Investment
VALUE ADDED BY CASA MEMBERS

20. 20
VALUE ADDED BY CASA MEMBERS
Member’s corporate social
responsibility by sector

21. 21
VALUE ADDED BY CASA MEMBERS
CASA members still
significant
employers
• The casino industry continues to be an important employer. CASA members
support over 38 120 jobs:
• 10 719 directly employed for casino operations.
• 2 672 people being employed by outsourced services also for casino
operations.
• Balance employed for non-casino operations like hotels, convention
centres, restaurants etc.

22. B-BBEE
SURVEY FINDINGS

23. 23
B-BBEE SURVEY FINDINGS
Ongoing efforts by casino industry to address B-
BBEE
• Measured against the Amended Tourism B-BBEE Sector Code.
• Industry has had to adjust B-BBEE strategies and plans to align to
this Code.

24. 24
B-BBEE SURVEY FINDINGS
Ongoing work and focus
Ongoing efforts by casino industry to address B-BEEE
Rated Level 1
66%
* 30% increase from last year
Average B-BBEE
rating
Level 1.36
Rated Level 2
28%

25. PROLIFERATION
OF ILLEGAL
GAMBLING
ESTABLISHMENTS
CASA COMMENTARY

26. 26
CASA’S VIEW
CASA’s view on illegal gambling
establishments
• Lack of enforcement remains an issue.
• Erosion of revenue from legitimate operations.
• Government urged to make a deliberate and concerted effort to address this plight.

27. THANK YOU
Media content available for press:
• Media releases
• Podcast
• Infographic
To download the survey
please visit www.casasa.org.za