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

2. 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

3. 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

4. CASINO SECTOR

5. OPERATIONAL CASINOS AS AT 15 MARCH 2015 OPERATIONAL CASINOS AS AT 15 MARCH 2015 7 5 4 3 2 4 5 4 3 37 operational casinos out of 40 available licences One casino added: The Grand Oasis Casino (Northern Cape) Major role player: Gauteng

6. OPERATIONAL CASINO POSITIONS AS AT 31 MARCH 2015 13 673 2 157 707 708 2 436 1 360 1 942 5 924 4 453 Major role player: Gauteng Total FY13: 30 831 Total FY14: 31 860 Total FY15: 33 360 Increase The same Decrease 3.3% 4.7%

7. GGR CASINOS, FY13 - FY15

8. RACING AND BETTING SECTOR

9. OPERATIONAL BOOKMAKERS OUTLETS AS AT 31 MARCH 2015 91 27 1 40 3 5 32 78 158 Major role player: Western Cape Total FY13: 380 Total FY14: 369 Total FY15: 435 Increase The same Decrease -2.9% 17.9%

10. OPERATIONAL TOTALISATOR OUTLETS AS AT 31 MARCH 2015 139 21 2 18 15 17 13 118 57 Major role player: Gauteng Total FY13: 397 Total FY14: 389 Total FY15: 402 Increase The same Decrease -2.0% 3.3%

11. GGR RACING & BETTING, FY13 - FY15

12. GGR RACING & BETTING, FY12 – FY15

13. LIMITED PAYOUT MACHINE SECTOR

14. ACTIVE LPMs AS AT 31 MARCH 2015 2 116 N/A 1 155 479 255 662 319 2 319 1 545 1 748 Major role players: KZN and Gauteng Total FY13: 7 743 Total FY14: 9 288 Total FY15: 10 279 Increase The same Decrease 20.0% 10.7%

15. GGR LPMs, FY13 - FY15

16. BINGO SECTOR

17. OPERATIONAL BINGO POSITIONS AS AT 31 MARCH 2015 OPERATIONAL BINGO POSITIONS AS AT 31 MARCH 2015 N/A EBTs: 3 212 Traditional: 2 157 N/A North West EBT: 307 Trad: 113 Total: 420 N/A Major role player: Gauteng Total FY13: 3 338 Total FY14: 4 557 Total FY15: 5 369 Licensed positions: 9 813 Gauteng EBT: 1 731 Trad: 1 243 Total: 2 974 Mpumalanga EBT: 170 Trad: 159 Total: 329 KwaZulu-Natal EBT: 0 Trad: 642 Total: 642 Eastern Cape EBT: 1 004 Trad: 0 Total: 1 004 Increase The same Decrease 36.5% 17.8%

18. GGR BINGO, FY13 - FY15

19. NATIONAL GAMBLING STATISTICS GROSS GAMBLING REVENUE NATIONAL GAMBLING STATISTICS GROSS GAMBLING REVENUE

20. GGR, ALL MODES, ALL PROVINCES: FY13 - FY15

21. GGR, ALL MODES, ALL PROVINCES: FY15

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

23. SNAP SHOT OF THE INDUSTRY AS AT 31 MARCH 2015 VARIABLENUMBER Operational casinos37 Operational casino positions (slots and tables)33 360 Operational totalisator outlets402 Operational bookmakers213 Operational bookmaker outlets435 Operational active LPMs10 279 Operational bingo outlets26 Operational bingo seats5 369 Gross gambling revenue R 23 895 607 121

24. 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:  1 244 gambling positions added in KZN  152 gambling positions added in Northern Cape Since FY14 to FY15 a 4.5% increase in GGR SUMMARY: CASINOS

25. 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

26. 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

27. 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

28. 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

29. QUESTIONS AND COMMENTS Presenter: Ms Estelle Jonkheid (Ms) Senior Manager: Research & Information National: 01000 33478 Mobile: 078 57 42542 International: 27 1000 33478 E-mail: ejonkheid@ngb.org.zaejonkheid@ngb.org.za Web: www.ngb.org.zawww.ngb.org.za Address: 420 Witch-Hazel Avenue, Eco-Glades 2, Block C, Eco-Park, Centurion, 0144