Successful Year for South African Gambling Market

December 12 - A recent report released by PriceWaterCoopers concerning the growth of gambling markets around the world has shown the South African casino industry in a very positive light.

The PwC report showed that the South African market saw a 3.5% increase in growth 2010,and was worth $1.8 billion. More importantly, South Africa had the fastest growing casino industry in the world last year

South Africa has the Fastest Growing Gambling Market

The report issue by PwC stated: "South Africa had the fastest growing market in 2010, with a 3.5% increase. Casino upgrades and a new casino license will enhance the South African casino market, but compared with the prior decade - when a number of new casinos opened - there will be relatively little growth from new casinos during the forecast period."

The reason that growth will be be slow from new casinos, according to the report, is that there are only three casino operating licenses left out of the available 40 issued by the country's gambling authorities.

"In South Africa, the National Gambling Acts permits 40 licensed casinos," read the report. "Currently, there are 37 operating casinos, which leaves little room for expansion. Nevertheless, we do expect new investment in the market."

The report noted that the Limpopo Gambling Board awarded one of its coveted licensed to Peermont Global.  In addition, Peermont upgraded the Umfolozi Hotel and Convention Resort, while plans have been made by Sun International to upgrade the Boardwalk Casino in Port Elizabeth.

Other noteworthy upgrades in the pipeline will take place at the Hemingsway Casino in Port Elizabeth, scheduled by Tsogo Sun Gaming.

"These upgrades, combined with an expanding economy will provide a lift to the casino market," said the PwC South African hospitality and gaming sector leader, Nikki Forster.

Issues that have the potential to affect the South African gambling market adversely include a new, proposed taxation of 15% on all winnings over R250,000, which will go into effect next year.

According to the report, the global casino gaming revenue across the US, Europe, Middle East, Africa, Latin America and Canada will grow 9.2% per year during the next five years, and will be worth $182.8 billion by 2015.  Asia is projected to overtake the US in 2013 to become the largest region for casino gaming around the globe.

Tell A Friend