CASA 2015 Survey Findings

PRESENTATION HEADER HERE

1

Media BriefingSurvey of Casino Entertainment in

South Africa 2015Adv. Themba Ngobese


2

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

Facts about our members

30 November 2015

64 000 direct employeesExcludes indirect employmentMost of whom had no prior working experience

Invested in excess of R40 billion to dateSun City, CTICC, SICC

One of the most regulated, transparent, taxed industries


4

Introduction: Survey of Casino Entertainment in South Africa 2015

30 November 2015

Annual Survey CASA members

2014-2015


5

Main Survey Objectives

To obtain a comprehensive overview on the impact of the casino industry on local, provincial and national economies

30 November 2015

1To provide accurate and fact based information that can inform policy and dispel misconceptions2


6

National Gambling RevenueSurvey Findings


7

National Gambling Revenue Statistics

R24 billion Gross Gambling

Revenuein 2014/2015

30 November 2015

9.6%Increase in GGR

in 2014/2015

R17.2 billion/ 72.1%

Gross Gambling Revenuefrom Casino Industry

R5.7billion in taxes paid

3.6% increase

4.5% increase


8

Location of legal casinos in SA

30 November 2015


9

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

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

Gambling Taxes/ Levies and VAT

Survey Findings


12

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

Value Added Statement – Where the money goes?

Survey Findings


14

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

National Responsible Gambling Programme and Compliance CostsSurvey Findings


16

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

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

B-BBEESurvey Findings


19

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

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

Corporate Social Investment and Sustainability

Survey Findings


22

Education received the lion’s share of CSI funding

30 November 2015

R134 millionContributed 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 milliontowards sports, arts & culture


23

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

THANK YOU

For more information, please visit: www.casasa.org.za


25

Questions

30 November 2015

Entertainment & Humor

CASA 2015 Survey Findings