R8.2bn gambled away in a year
2004-09-28 11:45
Cape Town - South Africans gambled away R8.2bn over the past year, mainly at casino tables and slot machines, according to the National Gambling Board (NGB).
In its latest annual report for the financial year ending March 31 this year, tabled in parliament, the NGB says gross gambling revenue (GGR) increased 19.2% compared to the previous year (2002/03).
"The reason for this apparent huge increase is due to the fact that five new casinos became operational in the current year (2003/04), and for the first time reported on their GGR for the relevant period."
The NGB, established in terms of the 1996 Gambling Act, monitors the horseracing (bookmakers and totalisators), bingo and casino industries in South Africa.
According to the report, 89.1% of the GGR - defined as the gross win of an operator before deducting gambling taxes, levies and VAT - went to South Africa's casinos.
Betting on horseracing accounted for 10.6%, and on bingo 0.2%.
Most gambling money spent in Gauteng
Almost 45% (about R3.7bn) of the money spent on gambling was spent in Gauteng, way ahead of the Western Cape (16%) and KwaZulu-Natal (15.5%).
In contrast, punters in both the Free State and Northern Cape accounted for just over two percent of the GGR.
Gambling taxes and levies collected in all nine provinces totalled over R763m.
According to the report, an investigation is under way into the "zero rating of tax on punters in respect of sports betting".
"The intention of this investigation is to consider moving the tax, on winning bets struck, from the punter to the bookmaker, in order for South Africans to compete in the international market."
It also warns of British betting exchanges, which it says have "become a major threat to the stability of the industry, with more and more South African punters depositing money in the United Kingdom and betting via these exchanges".
- SAPA