SA Land Casino Revenue
Growth Levels Out
 February
9 - According to a recent story published in a daily South
African newspaper, the global economic downturn - which has
obviously had a knock-on effect on South Africa - has
effectively halted growth in
SA land casinos, which began to
level out last year.
The article cited statistics from a 2008 survey conducted by the
Casino Association of South Africa
(CASA) which, while
highlighting a gross gaming revenue increase from R6,22 billion
in 2001/2 to R15,61 billion in 2007/8, showed that growth in the
sector had in fact started leveling off.
Said CASA chairman Derek Auret, 'As in all sectors, SA land
casinos came
under increased pressure
in the past few months due
to the current economic turmoil. Gaming is essentially a form of
entertainment and will thus be affected when people are forced
to start tightening their belts.'
While Gauteng province, with its seven casinos, generated a
not-too-shabby R1,405 billion, the
highest gambling revenues
of
any province in the country in the fourth quarter of last year,
statistically its revenues only showed a growth of 5.5 percent
on the previous quarter, lower than in previous months.
To make matters even more difficult for SA land casinos, the
country's
National Gambling Act
(NGA) has restricted the number
of casino licenses in South Africa to just 40, 37 of which have
already been awarded. The three licenses up for grabs are in
Mpumalanga, Limpopo and the E Cape respectively.
As a result, industry analysts are
forecasting increased
consolidation
in the sector. In 2007, South African casino giant Tsogo Sun famously tried to acquire fellow gaming operation,
Gold Reef Resorts. Analysts expect to see more acquisition
attempts as the industry starts to 'cannibalize' itself to ride
out the economic slump.
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