South Africa loves fast money
If you thought South African consumers were struggling in the wake of eight successive interest rate hikes, then think again. According to an article published in this weekend’s Sunday Times local consumers upped their support for casinos by an alarming 15% last year. While household disposable income sank, casino bosses rubbed their hands with glee as punters thronged to their establishments hoping to make a quick buck.
During the dark Apartheid years we had to travel into one of the country’s homelands to find a casino. Gambling was a ‘sin’ after all, a wholly inappropriate activity for any self-respecting National Party member. If you wanted to throw away your hard earned cash you actually had to go out of your way to do it. Establishments like Sun City in Bophutatswana and The Wild Coast Sun in the Transkei flourished outside South Africa’s official borders.
33 Casinos feed a dangerous passion
Today there are no less than 33 casinos to choose from. And with two more casinos planned in the Northern Cape, two more in the Eastern Cape and one more heading Gauteng’s way finding a casino close to home will become even easier.
According to a report compiled by the Casino Association of South Africa (Casa) casinos proved extremely popular leisure destinations during 2007. The report confirms that more than 20m people visited casinos in Gauteng during the year. Gauteng boasts six casinos at present, including Monte Casino (Fourways), Emperor’s Palace (Kempton Park), Gold Reef City, Emerald Casino Resort (Vanderbijl Park), Carnival City (Brakpan) and Morula Sun (Mabopane). 14.2m gamblers paid a visit to KwaZulu-Natal operations (five casinos) and 8.9m made the same trip in the Western Cape (five casinos).
The National Gambling Board (NGB) reveals that at March 2007 the capital invested in South Africa’s operating casinos amounted to R45.222bn offering punters a choice of 21 050 slots and 967 tables.
R13.5bn down the tubes
Local punters spent R13.5bn chasing the illusive big win in the latest year. Gauteng topped the tables, accounting for 41% of this revenue. Government also emerged a big winner, taking 1.293bn in tax revenue from gambling activities. Revenues from gambling have increased steadily since 2002 when total revenue amounted to R6.227bn.
NGB statistics provide an interesting summary of how this revenue is apportioned to different gambling activities. The largest slice of revenue (86.2%) accrues to casinos. A smaller amount (10.8%) is spent on betting with the balance spent on other gambling activities, including bingo.
Lotto causing serious social problems
A while back South Africa’s other gambling pastime, the Lotto, went offline due to government’s bungling of the tender to run the operation. Unfortunately it only took a few months for the gaff to be sorted out and the country’s poorest citizens once again have access to the world’s ultimate ‘get rich quick’ scheme.
Although there is little doubt many individuals spend more than they can afford at casinos – the National Responsible Gambling Programme (NGRP) believes the lottery is responsible for more than its share of problems. NGRP executive director Peter Collins told the Sunday Times: “In South Africa we have a much higher rate of problem gambling among people who only play the Lotto. The reason is people are superstitious; they buy more tickets than they can afford and think they will make their dreams come true.” Sadly the poorest of the poor suffer most when they chase the illusive returns on offer from gambling.
Editor’s thoughts:
Despite huge increases in both the number of casinos and casino revenues it appears the number of people seeking help for gambling addictions remain constant. Do you believe gambling revenues should be on the rise given the economic conditions prevailing in the country at present? Post your comments online, or send them to [email protected]
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