South Africans gambled R257.6 billion in 2011

14 November 2012 - 14:45 By Sapa
Casinos have once again come under the spotlight.
Casinos have once again come under the spotlight.
Image: Gallo Images/Thinkstock

South Africans spent R257.6 billion on gambling in 2011, according to a report by PricewaterhouseCoopers (PwC).

This equated to more than R8000 per adult, said Nikki Forster, PwC Gaming Industry leader for South Africa.

Forster was speaking at the release of PwC's first edition of the SA Gaming Outlook report in Rosebank, Johannesburg on Wednesday.

The report focused on segments within the gaming industry including casino gaming, limited payout machines (LPM), sports betting, and bingo.

The report detailed turnover (amounted betted by players), gross gaming revenue (amounted betted less winnings returned to players), and gaming taxes and levies collected by provincial licensing authorities.

Overall turnover for all types of gambling rose by 10.6 percent in 2011 from eight percent in 2010.

Forster said turnover was projected to increase at a 6.3 percent compound annual rate during the next five years, to R349.6 billion in 2016.

Casino gross gaming revenue in South Africa climbed steadily in 2011 and recorded its largest gain since 2007 at 5.8 percent.

Forster said casino gaming generated R14.9 billion in gross gaming revenue in 2011.

"Casino gross gaming revenues will rise at a 5.3 percent compound annual rate to R19.2 billion in 2016..."

According to the report most of the country's gambling activity occurs in Gauteng, KwaZulu-Natal and the Western Cape, which together comprise nearly 77 percent of total gross gaming revenue in 2011.

Gauteng represents 41 percent of the total market.

Sports betting made up 12 percent of the gross gaming revenue, with horse racing determined as the dominant component of the market. Sports betting, which had grown considerably in the past few years, was affected by major international events in 2011.

There was a 40 percent increase in turnover due to the Rugby World Cup. The 2014 Fifa World Cup and the 2015 Rugby World Cup were expected to benefit sports betting over that period.

Gross gaming revenue for sports betting was projected at R3.2 billion in 2016.

Revenue from LPMs and bingo more than doubled between 2007 and 2011. LPMs contributed R1.2 billion to the gross gaming revenue total in 2011, while bingo accounted for R235 million.

Part of the LPM growth was due to the proliferation of new machines.

Bingo, which is currently only available in Gauteng, generated R200 million in gross gaming revenue in 2011. It was expected to be the fastest growing category in the next five years, with a projected 20 percent compound annual increase in turnover to R8.4 billion by 2016.

Forster said bingo was expected to be introduced in KwaZulu-Natal, Mpumalanga and the North West in the next five years.

Gaming taxes and levies for the government totalled R1.8 billion in 2011, up 9.8 percent from the previous year.