THE IMPACT OF ILLEGAL GAMBLING ACTIVITIES ON CASINO OPERATIONS IN THE COUNTRY Presented by Adv. Themba Ngobese 26 June 2015

THE IMPACT OF ILLEGAL GAMBLING ACTIVITIES ON CASINO OPERATIONS IN THE COUNTRY ABOUT CASA CASA is a voluntary association which represents the interests of licensed casino operators in SA. 36 of the 38 operational casinos in SA. As at March 2014, our members had invested in excess of R30 billion in infrastructure leading to the development of world class entertainment destinations incorporating more than 7800 hotel rooms and other entertainment facilities. In excess of direct jobs, many of which give employment to people with no previous work experience. Excludes indirect jobs. In excess of R80 million per year on CSI. In the FY 13/14 alone, accounted for more than R1.6 billion (R1.8 billion in 12/13) in Provincial Gambling Taxes which, together with VAT & Corporate Tax, contributed R4.5 billion to Government revenues. Government had an effective 38% share of the ‘value-added’ to the economy by the casino sector in the FY2013/2014 and as such it is the largest de facto stakeholder in the casino industry. Established an internationally recognised responsible gambling programme (NRGP) whose with a budget of more than R25 million per year.

THE IMPACT OF ILLEGAL GAMBLING ACTIVITIES ON CASINO OPERATIONS IN THE COUNTRY THE IMPACT They discourage and parasite on legal investment initiatives A definite consideration for new or further capital investments A hindrance to the socio-economic benefits that the legal gambling industry provides: Contribution to the fiscus (tax base) at national or provincial level CSI contributions Sustainable and decent employment opportunities Contribution to B-BBEE Recent research findings indicate that they are a major contributor to problem gambling They do not adhere to responsible gambling practices No contribution to the NRGP funding or its programmes They tarnish the image of the legal gambling industry Employees are taught and encouraged to cheat the public/players Minors are permitted to gamble No player/customer protection e.g. no recourse for disputes No adherence to labour relations legislation Often used as conduits for other illegal activities

THE IMPACT OF ILLEGAL GAMBLING ACTIVITIES ON CASINO OPERATIONS IN THE COUNTRY QUESTIONS / COMMENTS