The gross revenue of gambling for South African casinos during the last year was 3.5%, it is positive when taking into consideration the recession in the country. This is coupled with the insecurity of the gambling market, which further enhances the growth of illegal gambling.
Major Law Changes is Needed to Prevent Illegal Gambling
The Casino Association of South Africa faces significant challenges when it comes to gambling operators causing the problem. It all adds up and with the decline in GGR operators continues to accept players from the country. The fiscal GGR of 3.5% is lower than the rate of inflation which decreased by 1.8%. It was also the very first time, which is hugely surprising that gambling in the legalized sector reduces since 1997.
The Casino Association of South Africa also indicated that it paid $425.16 million or 37% of GGR in levies and taxed to various entities of government during the year. The amount made the government the recipient of the revenue of the group of casino members.
Positive Growth Expected in Gambling
According to a recent PricewaterhouseCoopers report the gambling industry in South Africa is expected to grow by more than 5% yearly until 2021 and will by then reach around $2.43 billion. The Casino Association of South Africa hopes that the prediction is correct and that members want to contribute to the aim of making the country better.
Illegal Gambling Continues to Grow
The CEO of CASA, Themba Ngobese shared in a press conference that casinos in the country attract tourism and investment into the country and that the money paid in levies and taxes is utilized to improve everything. This includes healthcare and education as well as housing. The primary concern is the massive growth in illegal gambling; these operators that offer gambling opportunities to South African’s do not pay any taxes or levies.
Illegal Operators are Stealing from the Country
The exponential growth in illegal operations in gambling forces the government to take an even stricter stance on gambling operations as the operators steal from the country. Ngobese also asserted that not nearly enough is done to prevent illegal gambling in the country. The laws are there, but at the moment they are meaningless as firms are not committed to enforcing these laws.
Stricter Laws Regarding Illegal Casinos and Gambling for South Africa
He is fully aware that there will always be individuals that believe that illegal casinos and illegal gambling activities are victimless crimes although it could not be any further from the truth. Legislation chances that will take place are the anti-smoking policies, and with the ban on smoking, the drop in the GGR was as much as 18%. Dog racing is also prohibited and so is any gambling advertising and once the currently flawed gambling regulations are taken seriously, many things could change for the better of the country.
