South Africa is the third largest casino market in EMEA

In its Global Gaming Outlook to 2015 released this week, PwC says that in terms of casino gaming, France had the largest casino market in the Europe, Middle East and Africa (EMEA) region in 2010 at us$ 3.8 billion, followed by Germany and South Africa at us$ 2 and us$ 1.8 billion, respectively. But France has declined during the past two years, and a further drop is expected in 2011 with modest increases projected thereafter as the economy improves, according to PwC.

"Germany has one of the strongest economies in EMEA, and its market continued to expand during the past three years, albeit at annual rates of less than 1%. We look for somewhat faster increases during the latter part of the forecast period as economic conditions strengthen and as private companies enter the market as privatization occurs, by taking on existing licences," the report says.

"South Africa," it states, "had the fastest growing market in 2010 with a 3.5% increase. Going forward, casino upgrades and a new casino licence will enhance the South African casino market, but compared with the prior decade - when a number of new casinos opened -there will be relatively little growth from new casinos during the forecast period."

PwC adds that a new 15% tax on winnings of us$ 3,099 or higher, provisionally scheduled to go into effect in 2012, is expected to have an adverse impact on the market. However, there is currently no detail available on how the proposed tax is to be calculated or collected, it points out.

"In South Africa, the National Gambling Act permits 40 licensed casinos. Currently, there are 37 operating casinos, which leaves little room for further expansion. Nevertheless, we do expect new investment in the casino market”, the report pointed.

It also added that the Limpopo Gambling Board awarded a casino licence to the Peermont Global Group. Peermont also upgraded the Umfolozi Hotel and Convention Resort. Sun International plans to upgrade the Boardwalk Casino in Port Elizabeth and Tsogo Sun Gaming plans to upgrade the Hemingways Casino in East London, having been awarded a new 15-year licenCe by the Eastern Cape Gambling Board.

"These upgrades combined with an expanding economy will provide a lift to the casino market," PwC said.