Cape Town - Growth in the gambling industry moderated in 2013 with higher payout rates in certain sectors, according to a PricewaterhouseCoopers (PwC) report on Thursday.
Higher payout rates were recorded for casinos, limited payout machines and sports betting.
Gambling turnover increased 7.5 percent last year but gross gambling revenue was only up 4.3 percent.
The slowdown in gross gambling revenue in 2013 was centred on casinos, the largest category, at R16.5 billion in 2013.
Casinos posted a modest 0.6 percent advance.
This was according to a PwC report titled “Raising the stakes in Africa. Gambling outlook: 2014 - 2018” which compared gambling in South Africa, Nigeria, and Kenya.
“In South Africa, growth will improve somewhat in the next two years, but will remain sluggish. We then look for a stronger economic growth, expanded casinos and new hotels to lead to faster growth in casino gambling,” the report predicted.
Gross casino gambling revenue was projected to increase at a 3.9 percent compound annual rate to R20bn (US1.6bn) in 2018.
Bingo gross gambling revenue was expected to remain the fastest-growing category with a 19 percent projected compound annual increase to R1.8bn in 2018.
“Gross gambling revenues as a whole will expand from R21.8bn in 2013 to R29.5bn in 2018, a 6.2 percent compound annual increase.”
According to the report, National Lottery gross revenue was the only category to decline last year, by 1.5 percent. It had been the weakest segment of the market since 2010 and was expected to remain so with a 1.1 percent compound increase to 2018.
Gambling taxes and levies increased by 6.6 percent in 2013 to R2.2bn.
These taxes and levies are paid to the provincial gambling boards.
Casinos also paid deemed output Value Added Tax to the National Treasury on their gross gambling revenues.
The National Gambling Act permits 40 licensed casinos in South Africa, 38 of which were licensed.
All but one of them were currently in operation.
According to the report, casino gambling was concentrated in Gauteng, KwaZulu-Natal, and the Western Cape.
“While we do not expect an increase in the number of casinos, casino upgrades and expansions should have a positive impact,” the report stated. - Sapa