For the financial year 2015-2016, the total income from legal gambling activities will be up to ZAR $1.86 billion.
The biggest revenue given by casinos is 70.5% of the total revenue of USD 1.3 billion. Then, there is the exchange rate – 16.9% or USD 315 million;
then LPM (Limited payment machine, limited payment machine) – 9.0% or USD 167 million; at Bingo rank – 3.6% of total income or USD 66 million.
Provinces with different gross income from gambling
The gambling industry in Gauteng province earns the most – 40% or 745 million USD in the fiscal year 2015-2016. The second place occupied by Western-Cape Province – 15.6% or USD 291 million. The third place was made by KwaZulu-Natal – 18.5% or USD 344 million.
Gauteng generates the highest income in casinos, wagers, and bingo. The highest income in LPM sector is received by Western-Cape province – 30%.
The number of slot machines at casinos in South Africa in 2015 was 23,415. Revenue from positions – $ 969 million. The number of tables in 2015 in all domestic casinos was 932 pieces. Income from them is 237 million USD.
Gambling tax in South Africa
State budget deductions are also estimated in millions of dollars. In 2015, the South African government received $ 262 million from the gambling business. This constitutes 28% of the total revenue of gambling facilities.
Tax deductions include three types of payments
Corporate taxes are collected from corporations. Its value is based on the company’s income. Gambling tax is collected from the license holders of the provincial government. The value is calculated based on the total revenue of the license.
Value-added tax – calculated on the basis of added value at each stage of production and exchange of goods and services. It also counts in casinos, not for players.
Online gambling business in South Africa
Despite the fact that online gambling in South Africa is banned, all players can use the services of international casinos. Players can invest in the local currency, simplify the service. But from October 4, 2016, the government can confiscate player winnings. The Ministry of Trade and Industry has published a new amendment to the National Gambling Amendment Bill, whereby the court reserves the right to confiscate and retain player’s winnings.