What is the SA Gambling Industry Worth?
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The gambling industry of South Africa and if the past few years taught us anything it will only keep growing. Compared to the not so distant past where the legal status of casinos and gambling was at best problematic, nowadays it is completely legal and a lot of South Africans enjoy playing casino games. Furthermore, online casinos and online casino gaming have finally been legalised in the country. If you're interested in online casinos and online casino gaming you can check the list of the best online casinos in South Africa at ZebraCasino.co.za.
The current Situation
In 2014, where online gambling was still pretty much illegal, most of the gambling revenues came from casinos. The amount of revenues in 2014 reached 17.2 billion ZAR, or a grand total of 72% of all gambling revenues in the country. More than 40% of the revenue came from establishments that are located in Gauteng, the province that has 7 operating casinos and also the most populated province in the country, where about a quarter of the population lives. Then it is KwaZulu-Natal with revenues of 3.2 billion ZAR. About a fifth of the population lives in this province. And then we have Western Cape with casino revenues of 2.8 billion ZAR. These three provinces together gave three quarters of the total casino revenues in South Africa.
Tax Revenues and expected Growth
The Department of Trade and Industry is planning on increasing the total number of available casino licences in the country. All of the casinos in South Africa paid 3.7 billion ZAR in tax. This amount is more than a fifth of their total revenues. It is pretty clear that casino gaming is a huge boost for the country's economy. Also, the revenues from casino gaming and related activities such as bingo and sports betting are also steadily increasing, even though the lion's share comes from casinos. It is expected that the gross gambling revenues in South Africa will rise to a bit more than 30 billion ZAR in 2019, which is an increase of more than 6 billion in just 5 years. Knowing that the average tax paid by the industry is higher than the fifth of the total revenues, this means that the state can expect more than 6 billion in tax revenues.
In the Interest of Everyone
It is clear that it is in the interest of everybody for the South African casino gaming industry to keep growing. With the widespread use of internet and smartphones and the legalisation of online gaming we can expect even higher revenues in the future. In addition, the legalisation is very important in the struggle against casinos that operate illegally, i.e. without a licence, since that is very bad for the economy, because none of that money goes into the state budget.
Date Posted: 2016-02-26
Posted By: GBN Online
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