Gambling taxes and levies are projected to rise by 5.2% US$245.2 million by 2021. Last year, gambling taxes and levies were up 4.9% to US$189.1 million.
According to the report, the casino sector is the largest contributor to gambling taxes at US$ 126.1 million followed by the betting segment. There are more than 10,000 people directly working in the country’s gaming industry.
The report, however, noted that casino gambling “was down” and “overall growth was the lowest over the past five years.”
“A contributing factor to the drop for casinos and the slowdown in overall growth is the current economic climate,” PwC said in its report. “Added to the current economic conditions, illegal gambling continues to be a problem in South Africa.”
More South Africans are getting acquainted with the Bingo game as the report touted it as the fastest growing gaming category. According to PwC, the Bingo segment accounted for 5% of total GGR in 2016, up from 4% in 2015, buoyed by a 36.6% rise in GGR.
The report is forecasting an 11.9% compound annual rate increase for bingo GGR, growing from US$91.1 million in 2016 to US$154.1 million in 2021.
“The gambling industry in South Africa will continue to be adversely affected in the near term by slower economic growth, but improving economic conditions over the latter part of the forecast period will aid growth. The industry remains an important contributor to the economy through the creation of jobs, continued capital expansion and the payment of taxes to both provincial and national government,” PwC South Africa’s gambling industry leader Pietro Calicchio said.
Source: GMB / Calvin Ayre
