By Julius Baumann

CASINOS and gambling outlets saw their phenomenal revenue growth of the past 15 years slow sharply in the year to March, with gross gaming revenue up a meagre 1,8% to R15,912bn, the latest figures from the National Gaming Board show.

Acting board CEO Teba Moja said yesterday the slowing economy had a significant effect on the industry’s growth.

“In the last quarter of financial 2009 we saw revenue dip slightly from the previous year while full-year revenue in 2009 at constant 2002 prices was down on last year,” she said.

The horse-racing industry was hardest hit. “We saw several lay- offs in that sector, particularly as it is a labour-intensive industry.”

The board’s figures show that total turnover in the industry last year reached R212bn — a figure that included the total rand value of money wagered, including money wagered from winnings.

However, casinos only see a small percentage of these wagers, with the industry returning about 90% of them in the form of winnings. Casinos are obliged by law to return at least 80% to punters.

Moja also said while visitors numbers at gaming outlets remained constant last year, the amount they spent dropped as the economy took a bite out of South Africans’ disposal income.

As a result of the slowing revenue growth, the government’s share of profit was also only marginally higher than the year before, with tax and levies paid up 1,2% to R1,539bn.

The figures show that casinos still accounted for the largest slice of gross gaming revenue, with 85% of the market. Limited payout machines , which have only been introduced in the country in recent years and are only now in the process of being introduced in Gauteng, have shown the biggest growth.

In 2007 these accounted for 2,6% of total gaming revenue, 3,3% last year and 4% this year. Once the machines are in place in Gauteng — a province that accounted for 42% of SA’s total gross gaming revenue last year — the contribution from this sector is likely to grow substantially.

On the issue of illegal gambling, Moja said unlicensed operations had largely had been brought under control. However, she said illegal activities in North West continued to weigh on legal casinos and work still needed to be done to control the problem.

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Source: Business Day