This document summarizes the key findings of the 2015 Survey of Casino Entertainment in South Africa conducted by CASA. Some of the main findings include: - The casino industry generated R24 billion in gross gambling revenue in 2014/2015, a 9.6% increase from the previous year. - Casinos contributed R17.2 billion or 72.1% of the total gross gambling revenue. - The casino industry paid R4.8 billion in taxes and levies in 2014/2015. - Gauteng casinos contributed the most to gross gambling revenue and paid the highest amount in taxes at R7.1 billion. - Employees received 21% and the government received 37% of the R

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Media Briefing
Survey of Casino Entertainment in
South Africa 2015
Adv. Themba Ngobese

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Who is CASA?
• We represent the interests of the country’s legal casino gambling industry as well as
the public that the industry serves.
• Our mission: To play a constructive and positive role in the development of good
public policy and good governance in the casino industry.
9 December 2015

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Facts about our members
9 December 2015
64,000 employees
100,000 direct and indirect jobs in construction
phase
One of the most regulated, transparent, taxed
industries

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Introduction: Survey of Casino
Entertainment in South Africa 2015
9 December 2015
Annual Survey
CASA members
2014-2015

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Main Survey Objectives
To obtain a comprehensive overview on the impact of the casino
industry on provincial and national economies
9 December 2015
To provide accurate and fact based information that can inform
policy and dispel misconceptions

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National Gambling
Revenue
Survey Findings

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National Gambling Revenue Statistics
R24 billion
Gross Gambling
Revenue
In 2014/2015
9 December 2015
9.6%
Increase in GGR
in 2014/2015
R17.2 billion
/ 72.1%
Gross Gambling
Revenue
from Casino Industry
R4.8
billion
in taxes paid
6.7%
increase
4.5%
increase

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Location of legal casinos in SA
• Insert map from Rae
9 December 2015

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Gauteng casinos contribute the most
towards GGR
• Gauteng has seven legal
operating casinos
• Growth of 2.4% in Gauteng
• Biggest growth
experienced in North West
and Northern Cape with
average 12% growth
• Negative growth in Free
State with -2.5% growth
9 December 2015
Casinos have been mpacted by downturn and have experienced revenue
erosion due to illegal online gambling
Insert map from Rae

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Tables generate the most revenue
• Revenue per table: R3.3million in 2015
– Up 1.5% from prior year
– Due to slight increase in operational
tables
• Average revenue per slot machine:
R0.6million
• Total revenue of slots: R13.6million
– Up 1.7% from prior year
– Due to slight increase in slot
machines
9 December 2015
Insert graph from Rae

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Gambling Taxes /
Levies, VAT and
Corporate Taxes
Survey Findings

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Gauteng casinos pay the most taxes –
R7.1billion
• Total tax contribution of all CASA
members is R17.2billion
• Gauteng contributes R7.1billion in
taxes
• KZN contributes R3.2billion
• Western Cape contributes R2.7billion
9 December 2015
Insert pie chart from Rae
Taxes make up 28% of total
GGR

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Value Add – Where
the money goes?
Survey Findings

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Employees and government receive the
greatest value
9 December 2015
R15.2 billion
value generated by CASA
members
21%
distributed to employees
37%
distributed to government

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National Responsible
Gambling Programme
and Compliance Costs
Survey Findings

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Members contribute R17million towards
the National Responsible Gambling
Progamme
9 December 2015
Insert image from Rae
Funding of education,
training, treatment,
counselling and research in
connect ion with
responsible gambling

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Members contributed R69 million
towards compliance
9 December 2015
Insert image from Rae
Gambling regulatory
compliance costs, internal
audit requirements for
reporting and costs incurred
for the casino regulatory
compliance function costs

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B-BEE
Survey Findings

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B-BBE remains an integral part of the
casino industry's business operations
• Of 35 members, 34 have Level 2 B-BBEE
ratings
• 1 casino has a Level 1
9 December 2015
Insert graph from Rae

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CASA is concerned about the
challenges faced in B-BBEE
• Provincial Gambling Regulators imposing additional B-BBEE license conditions (over
and above national requirements)
• CASA members will be required to be measured against Tourism Sector Code but
PGR require evaluation against generic scorecard set up by the Codes
• Three different reporting obligations relating to B-BBEE
– Tourism Sector Code
– Generic Scorecard
– PGRs
9 December 2015

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Corporate Social
Investment and
Sustainability
Survey Findings

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Education receives the lion’s share of
CSI funding
9 December 2015
R134million
Contributed towards CSI
(excluding contribution towards NRGP)
R56million
towards education
R32million
towards community development
R15million
towards health, HIV/Aids
R21million
towards other CSI project
R8million
towards sports, arts & culture

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Regulatory environment could be a
roadblock to the industry’s success
• Casinos are contributing significantly
towards taxation revenue, job creation and
economic empowerment
• We need policy to build on this
achievements
• Regulatory concerns:
– More stringent license requirements for
casinos industry than Bingo licences
• Limited licenses issued to casinos
• Competitive bidding process
• Capital investment is required
– Electronic Bingo Terminals operate as
slot machines but are not subject to
same license conditions
– Illegal online gambling
• Awareness campaign to counter
this
9 December 2015

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THANK YOU
For more information visit:
www.casasa.org

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Thank you
9 December 2015