casino association of south africa

PRESENTATION HEADER HERE

1

Media BriefingSurvey of Casino Entertainment in

South Africa 2015Adv. 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.

3 May 2023


3 3 May 2023

Facts about our members

64,000 employees100,000 direct and indirect jobs in construction phase

One of the most regulated, transparent, taxed industries


4 3 May 2023

Introduction: Survey of Casino Entertainment in South Africa 2015

Annual Survey CASA members

2014-2015


5 3 May 2023

Main Survey Objectives

To obtain a comprehensive overview on the impact of the casino industry on provincial and national economies1To provide accurate and fact based information that can inform policy and dispel misconceptions2


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National Gambling RevenueSurvey Findings


7 3 May 2023

National Gambling Revenue Statistics

R24 billion Gross Gambling

RevenueIn 2014/2015

9.6%Increase in GGR

in 2014/2015

R17.2 billion / 72.1%

Gross Gambling Revenuefrom Casino Industry

R4.8billion in taxes paid

6.7% increase

4.5% increase


8 3 May 2023

Location of legal casinos in SA

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9 3 May 2023

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

Casinos have been mpacted by downturn and have experienced revenue erosion due to illegal online gambling

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10 3 May 2023

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

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Gambling Taxes / Levies, VAT and Corporate TaxesSurvey Findings


12 3 May 2023

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

Insert pie chart from RaeTaxes make up 28% of total GGR


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Value Add – Where the money goes?Survey Findings


14 3 May 2023

Employees and government receive the greatest value

R15.2 billion value generated by CASA

members

21% distributed to employees

37% distributed to government


15

National Responsible Gambling Programme and Compliance CostsSurvey Findings


16 3 May 2023

Members contribute R17million towards the National Responsible Gambling Progamme

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Funding of education, training, treatment,

counselling and research in connect ion with

responsible gambling


17 3 May 2023

Members contributed R69 million towards compliance

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Gambling regulatory compliance costs, internal

audit requirements for reporting and costs incurred

for the casino regulatory compliance function costs


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B-BEESurvey Findings


19 3 May 2023

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

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20 3 May 2023

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


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Corporate Social Investment and SustainabilitySurvey Findings


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Education receives the lion’s share of CSI funding

3 May 2023

R134millionContributed towards CSI

(excluding contribution towards NRGP)

R56million towards education

R32million towards community development

R15million towards health, HIV/Aids

R21million towards other CSI project

R8milliontowards sports, arts & culture


23 3 May 2023

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


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THANK YOUFor more information visit: www.casasa.org


25 3 May 2023

Thank you

casino association of south africa

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