S.A's casino industry coins over R18bn in revenue

South Africa's casino industry continues to defy economic odds as the Casino Association of South Africa's (CASA) annual industry survey reveals that the country's 38 licensed casinos collectively generated 18.2 billion rand in gross gambling revenues in the year 2015/16, marking a 6.7 percent increase from the previous year. In an interview with CNBC Africa, CASA Chief Executive Advocate Themba Ngobese discussed the implications of these numbers and the challenges faced by the industry. Despite not reaching double-digit growth in recent years, the industry has managed to stay afloat amidst economic turmoil. Ngobese acknowledged that the modest growth is a positive indicator given the prevailing economic climate and consumer spending habits. He emphasized the importance of continuous investment in improving casino properties to attract and retain customers. Ngobese pointed out that the 18.2 billion rand figure only includes the 36 member casinos of CASA, excluding two smaller properties in the Northern Cape. One of the major concerns highlighted in the discussion was the presence of illegal casinos and unregulated online gambling in South Africa. Ngobese expressed the urgent need for government intervention to curb these activities, as they create unfair competition for legitimate casino operators. Despite efforts by CASA to raise awareness and collaborate with law enforcement agencies, the illegal gambling market continues to thrive, posing a challenge to the industry. Ngobese also shed light on the potential job creation and tax revenue that could result from regulating illegal gambling operations. With the gambling industry already supporting 64,000 jobs and contributing 2.8 billion rand in taxes, the formal regulation of illegal gambling could further boost employment and tax collection. However, the lack of decisive action from authorities has hindered progress in this area. Looking ahead, Ngobese expressed cautious optimism for the industry's performance in 2017, citing the opening of a new casino operation in Pretoria East as a potential revenue driver. He stressed the importance of broader economic growth in supporting the casino sector and urged for a more conducive business environment. Despite the challenges faced in recent years, Ngobese remains hopeful for a positive turnaround in the industry's fortunes. In conclusion, South Africa's casino industry continues to navigate economic uncertainties and regulatory challenges to sustain growth. With a focus on investment, regulation, and economic conditions, the industry strives to maintain its position as a significant contributor to the country's economy.