Illegal gambling rises in South Africa

The country’s recession has operators and the government worried about unlicensed operators rising as they pay no taxes.

South Africa.- During the first six months of 2018, the recession in South Africa seems to have impacted on the casino industry and the illegal segment has taken advantage of it. Despite an increase of GGR by 3.5% to €1.13 billion in the year to end March 2018, the number of illegal operations has increased, the authorities revealed.

The gaming industry currently provides around 38k jobs, but there are some concerns about the casino regulatory framework’s future, which may have impacted on the approach by some operators. According to the Casino Association of South Africa (CASA), said concerns, in addition to GGR growing under consumer inflation, may lead to a worse scenario in the near future.

“Casinos attract investment and tourism to the country, and the money members pay in taxes and levies is used to improve everything from education and healthcare to infrastructure and housing,” CASA chief executive Themba Ngobese said and added: “One of our biggest concerns is the exponential growth of illegal gambling operations. These illegal operators pay no tax or levies and contribute nothing to the South African economy. As an industry, we once again urge law enforcement to take a tougher stance on these illegal operations, which are essentially stealing from us all.”