South Afican industry keeps on cashing in despite rate hikes

This figure excludes revenue of the national lottery, which falls under the National Lotteries Board.

The report, tabled by board chairman Chris Fismer and acting chief executive Themba Marasha, notes a capital investment of us$ 6.4 billion on 40 casinos around the country. These involve about 20 000 slot machines and nearly 1,000 tables.

Gambling’s total tax contribution in 2006/07 came to about us$ 182.2 million. Casinos make up 86.2 percent of gambling spend, betting 10.8 percent and other forms of gambling, including bingo, about 3 percent.

Gauteng contributed 41 percent to gambling revenue, followed by the Western Cape at 18 percent and KwaZulu-Natal at 17 percent, with the remaining six provinces making up the rest. The provincial contributions to the tax cake was 41 percent for Gauteng, 22 percent for the Western Cape and 21 percent for KwaZulu Natal.

The report notes that Fismer’s pay package of us$ 103 thousand in 2006/07 (us$ 100 thousand in 2005/06) included a us$ 3,545 monthly payment for the use of his premises and facilities to perform his duties. The package of the chief executive - who was then chief operations officer - rose from us$ 80 thousand to us$ 98,410 in the year.

The gaming industry did well overall in the past year and executives said they expected this performance to continue despite the interest rate rise.

Sun International, the largest player with operations all over the country, lifted gaming revenue by 18 percent to us$ 757 million. Its revenue from slot machines was up by 20 percent and that from tables by 8 percent.

The Grand West casino in Cape Town was the largest single casino contributor, lifting revenue to us$ 224 million from us$ 196 million the previous year. It outstripped Sun City, which achieved revenue of us$ 147 million. Sibaya in KwaZulu-Natal achieved revenue of us$ 95.8 million.

Gold Reef Resorts said in its results for the six months to June that upbeat market conditions and new developments boosted revenue by 17.9 percent to us$ 117.6 million.

Earnings before interest, tax depreciation and amortization of us$ 50.2 million were up by 22.9 percent and represented a 42.7 percent margin on revenue.