Survey of Casino Entertainment in South Africa

1. PRESENTATION HEADER HERE
2
Media Briefing
Survey of Casino Entertainment in
South Africa 2015
Adv. Themba Ngobese

2. PRESENTATION HEADER HERE
3
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.
30 November 2015

3. PRESENTATION HEADER HERE
4
Facts about our members
30 November 2015
64 000 direct employees
Excludes indirect employment
Most of whom had no prior working experience
Invested in excess of R40 billion to date
Sun City, CTICC, SICC
One of the most regulated, transparent, taxed
industries

4. PRESENTATION HEADER HERE
5
Introduction: Survey of Casino
Entertainment in South Africa 2015
30 November 2015
Annual Survey
CASA members
2014-2015

5. PRESENTATION HEADER HERE
6
Main Survey Objectives
To obtain a comprehensive overview on the impact of the casino
industry on local, provincial and national economies
30 November 2015
To provide accurate and fact based information that can inform
policy and dispel misconceptions

6. PRESENTATION HEADER HERE
7
National Gambling
Revenue
Survey Findings

7. PRESENTATION HEADER HERE
8
National Gambling Revenue Statistics
R24 billion
Gross Gambling
Revenue
in 2014/2015
30 November 2015
9.6%
Increase in GGR
in 2014/2015
R17.2 billion/
72.1%
Gross Gambling
Revenue
from Casino Industry
R5.7
billion
in taxes paid
3.6%
increase
4.5%
increase

8. PRESENTATION HEADER HERE
9
Location of legal casinos in SA
30 November 2015

9. PRESENTATION HEADER HERE
10
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
30 November 2015
Casinos have been impacted by economic downturn and have
experienced revenue erosion due to illegal online gambling

10. PRESENTATION HEADER HERE
11
Tables and slots revenue stats
• Average revenue per table: R3.5
million in 2015
– Up 1.5% from prior year
– Due to slight increase in
operational tables
• Average revenue per slot machine:
R0.6 million
– Up 1.7% from prior year
– Due to slight increase in slot
machines
• Total revenue of tables: R3.3 billion
• Total revenue of slots: R13.7 billion
30 November 2015

11. PRESENTATION HEADER HERE
12
Gambling Taxes/
Levies and VAT
Survey Findings

12. PRESENTATION HEADER HERE
13
Gauteng casinos pay the most gambling
taxes/levies & VAT – R1.5 billion
• Total gambling tax/levies & VAT
contribution of all CASA members is
R3.7 billion
– Gauteng contributes R1.5 billion
• KZN contributes R724 million
• Western Cape contributes R697
million
30 November 2015
Taxes gambling taxes/levies
& VAT make up 21% of total
GGR

13. PRESENTATION HEADER HERE
14
Value Added
Statement – Where
the money goes?
Survey Findings

14. PRESENTATION HEADER HERE
15
Employees and government jointly
receive the greatest value
30 November 2015
R15.2 billion
value generated by CASA
members
21%
distributed to employees
37%
distributed to government

15. PRESENTATION HEADER HERE
16
National Responsible
Gambling Programme
and Compliance Costs
Survey Findings

16. PRESENTATION HEADER HERE
17
Members contribute R17 million towards
the National Responsible Gambling
Programme
30 November 2015
Funding of education &
training, research, treatment
& counselling in connection
with responsible gambling

17. PRESENTATION HEADER HERE
18
Members spend R70 million towards
compliance
30 November 2015
Gambling regulatory
compliance costs, internal
audit requirements for
reporting and costs incurred
for the casino regulatory
compliance function costs

18. PRESENTATION HEADER HERE
19
B-BBEE
Survey Findings

19. PRESENTATION HEADER HERE
20
B-BBEE remains an integral part of the
casino industry's business operations
• Of 36 members
– 1 has a Level 1 B-BBEE
rating
– 34 have Level 2 B-BBEE
ratings
– 1 only opened in April 2015
& is yet to be B-BBEE rated
30 November 2015

20. PRESENTATION HEADER HERE
21
CASA is concerned about the
challenges faced in B-BBEE
• Provincial Gambling Regulators imposing additional B-
BBEE licence 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
– Casino Licence Conditions
30 November 2015

21. PRESENTATION HEADER HERE
22
Corporate Social
Investment and
Sustainability
Survey Findings

22. PRESENTATION HEADER HERE
23
Education received the lion’s share of
CSI funding
30 November 2015
R134 million
Contributed towards CSI
(excluding contribution towards NRGP)
R56 million
towards education
R32 million
towards community development
R15 million
towards health, HIV/Aids
R21 million
towards other CSI projects
R8 million
towards sports, arts & culture

23. PRESENTATION HEADER HERE
24
Regulatory environment could be a
roadblock to the industry’s success
• Casinos are contributing significantly towards
taxation revenue, job creation, CSI and economic
empowerment
• We need policy to build on these achievements
• Regulatory concerns:
– Rapid rollout of Electronic Bingo Terminals
(“EBTs”) without a national regulatory
framework
• Unlimited Bingo licenses
• Unlimited number of EBTs etc.
– Flourishing illegal online gambling industry
• CASA Awareness campaign to counter this
– Proposed increase in the number of casinos
in SA
– Further regulatory intervention in the context
of:
• Advertising relating to gambling
• Additional smoking regulations
• Additional liquor regulations
30 November 2015

24. PRESENTATION HEADER HERE
25
THANK YOU
For more information,
please visit:
www.casasa.org.za

25. PRESENTATION HEADER HERE
26
Questions
30 November 2015