GAMBLING SECTOR PERFORMANCE IN SOUTH AFRICA AS AT 31 MARCH 2015 Presentation to: The Portfolio Committee on Trade and Industry 2 June 2015

CONTENT  Introduction  Sector performance (market conduct) by gambling modes as at 31 March 2015:  Casinos (slots and tables)  Horse racing & sports betting (totalisators and bookmakers)  Limited payout machines (LPMs)  Bingo  National gambling statistics – revenue (FY13, FY14 & FY15 (FY15 based on raw data))  Summary  Conclusion

INTRODUCTION  Based on Section 65(2)(e) in the National Gambling Act (No 7 of 2004), NGB monitors market conduct  NGB gathers provincial gambling statistics (turnover, gross gambling revenue and taxes/levies) relevant to all regulated gambling modes i.e. casinos, racing and betting, limited pay-out machines and bingo, as well as information on market conduct i.e. number of operational gambling positions, operators, outlets, etc.  Provincial gambling statistics are gathered from all Provincial Licensing Authorities (PLAs) on a quarterly basis (raw data) and verified annually referred to as audited figures  This presentation is based on the latest raw data received from PLAs during FY15. 4 th Quarter info from Northern Cape estimated  Where applicable, information is tracked from FY13

CASINO SECTOR

OPERATIONAL CASINOS AS AT 15 MARCH 2015 OPERATIONAL CASINOS AS AT 15 MARCH operational casinos out of 40 available licences One casino added: The Grand Oasis Casino (Northern Cape) Major role player: Gauteng

OPERATIONAL CASINO POSITIONS AS AT 31 MARCH Major role player: Gauteng Total FY13: Total FY14: Total FY15: Increase The same Decrease 3.3% 4.7%

GGR CASINOS, FY13 - FY15

RACING AND BETTING SECTOR

OPERATIONAL BOOKMAKERS OUTLETS AS AT 31 MARCH Major role player: Western Cape Total FY13: 380 Total FY14: 369 Total FY15: 435 Increase The same Decrease -2.9% 17.9%

OPERATIONAL TOTALISATOR OUTLETS AS AT 31 MARCH Major role player: Gauteng Total FY13: 397 Total FY14: 389 Total FY15: 402 Increase The same Decrease -2.0% 3.3%

GGR RACING & BETTING, FY13 - FY15

GGR RACING & BETTING, FY12 – FY15

LIMITED PAYOUT MACHINE SECTOR

ACTIVE LPMs AS AT 31 MARCH N/A Major role players: KZN and Gauteng Total FY13: Total FY14: Total FY15: Increase The same Decrease 20.0% 10.7%

GGR LPMs, FY13 - FY15

BINGO SECTOR

OPERATIONAL BINGO POSITIONS AS AT 31 MARCH 2015 OPERATIONAL BINGO POSITIONS AS AT 31 MARCH 2015 N/A EBTs: Traditional: N/A North West EBT: 307 Trad: 113 Total: 420 N/A Major role player: Gauteng Total FY13: Total FY14: Total FY15: Licensed positions: Gauteng EBT: Trad: Total: Mpumalanga EBT: 170 Trad: 159 Total: 329 KwaZulu-Natal EBT: 0 Trad: 642 Total: 642 Eastern Cape EBT: Trad: 0 Total: Increase The same Decrease 36.5% 17.8%

GGR BINGO, FY13 - FY15

NATIONAL GAMBLING STATISTICS GROSS GAMBLING REVENUE NATIONAL GAMBLING STATISTICS GROSS GAMBLING REVENUE

GGR, ALL MODES, ALL PROVINCES: FY13 - FY15

GGR, ALL MODES, ALL PROVINCES: FY15

INCREASE IN GGR, ALL MODES: FY13 - FY15 4.5% Increase from FY14 – FY15

SNAP SHOT OF THE INDUSTRY AS AT 31 MARCH 2015 VARIABLENUMBER Operational casinos37 Operational casino positions (slots and tables) Operational totalisator outlets402 Operational bookmakers213 Operational bookmaker outlets435 Operational active LPMs Operational bingo outlets26 Operational bingo seats5 369 Gross gambling revenue R

CASINOS: 37 Operational casinos (1 new casino in Northern Cape) Main role player is Gauteng Steady increase in gambling positions in casinos mainly as a result of:  gambling positions added in KZN  152 gambling positions added in Northern Cape Since FY14 to FY15 a 4.5% increase in GGR SUMMARY: CASINOS

RACING & BETTING:  Major role player re bookmaker outlets is Western Cape  Major role player re totalisator outlets is Gauteng  During FY15, and contrary to the past (totalisator, horse racing), sports betting (bookmakers) generated the highest GGR  A 17.9% increase in the number of operational bookmaker outlets since FY14  The number of operational totalisator outlets remained stable  Since FY14 to FY15 a 22.2% increase in GGR, mainly as a result of increased sports betting SUMMARY: RACING & BETTING

LPMs:  A 10.7% increase in the roll out of operational LPMs since FY14  Major role players are KwaZulu-Natal and Gauteng  Increased roll out of LPMs in all provinces  Since FY14 to FY15 a 19.6% increase in GGR SUMMARY: LPMs

BINGO:  26 operational bingo outlets (Gauteng, KZN, Mpumalanga, North West and Eastern Cape  Since FY14, a 17.8% increase in the number of operational bingo positions mainly as a result of:  642 operational traditional bingo positions rolled out in KZN  387operational bingo positions added in Eastern Cape  A decrease in the number of operational bingo positions was noticed in Gauteng and North West during FY15  A 19.6% increase in GGR from FY14 to FY15 SUMMARY: BINGO

1.Limited growth in casino sector 2.Sports betting 2.Sports betting has become very popular and generated the highest GGR in the racing and betting sector  Increased number of bookmaker outlets (17.9%) LPMs 3.Increased roll-out of LPMs in all provinces (except Northern Cape) 4.Bingo 4.Bingo accounted for the:  Highest increase (%) in operational positions  Highest increase (%) in GGR 5.Resulted in much higher increase in GGR from FY14 to FY15 (9.6%) compared to FY13 to FY14 (4.2%) CONCLUSION

QUESTIONS AND COMMENTS Presenter: Ms Estelle Jonkheid (Ms) Senior Manager: Research & Information National: Mobile: International: Web: Address: 420 Witch-Hazel Avenue, Eco-Glades 2, Block C, Eco-Park, Centurion, 0144