Download - ECONOMIC IMPACT OF LEGALISED GAMBLING IN SOUTH AFRICA, SINCE 1994 NATIONAL GAMBLING BOARD
ECONOMIC IMPACT OF ECONOMIC IMPACT OF LEGALISED GAMBLING IN LEGALISED GAMBLING IN SOUTH AFRICA, SINCE 1994SOUTH AFRICA, SINCE 1994
NATIONAL GAMBLING NATIONAL GAMBLING BOARDBOARD
OBJECTIVESOBJECTIVES
COMMUNITY ATTITUDES AND PARTICIPATION IN GAMBLING
IMPACT OF GAMBLING ON H/H WELFARE LEVELS
GAMBLING’S CONTRIBUTION TO SA’S ECONOMY
INTERNATIONAL COMPARISONS
METHODOLOGY:METHODOLOGY:SURVEY SAMPLESURVEY SAMPLE
Telephone interviews : 1 000
Personal interviews : 1 050
Total : 2 050
PERSONAL VIEWS ON GAMBLINGPERSONAL VIEWS ON GAMBLING
Not acceptable to me but have
no objections to gambling by
others14.8%
Acceptable to me
73.0%
Not acceptable to me12.2%
REASONS FOR REASONS FOR NON -PARTICIPATIONNON -PARTICIPATION
Percentage
14.8
0.8
21.9
29.7
32.8
0 10 20 30 40
Other
No access to gamblingfacilities
Against religiousbeliefs
Lack of money
Don't gamble at all
PARTICIPATION IN GAMBLING PARTICIPATION IN GAMBLING BY MODEBY MODE
Percentage
27.5
2.4
0.6
7.2
2.3
15.3
19.3
71.3
0 20 40 60 80
None of the above
Other
Internet/On-line gambling
Bingo
Sports
Horse betting
Casino gambling
National lottery
GAMBLING FREQUENCY BY GAMBLING FREQUENCY BY MODEMODE
0.80
11.18.5
24.5
21.5
0
60.5
0 0
3.3 4
20.8
6.39.2
64.1
5.4
53.4
0
10
20
30
40
50
60
70
Daily Weekly Twice weekly Fortnightly Monthly Less often
Casinos Lottery Horseracing
GAMBLING AS A LEISURE GAMBLING AS A LEISURE ACTIVITY FOR SOUTH AFRICANSACTIVITY FOR SOUTH AFRICANS
52.2
44.6
24.0
33.0
23.8 22.4
0
10
20
30
40
50
60
Yes Can't say Disagree
Casinos Horseracing
PARTICIPATION RATES OF PARTICIPATION RATES OF LESS AFFLUENTLESS AFFLUENT
% Share in: Lottery Casinos
Unemployed 27,2 22,1
<R6 000 income per
annum 23,3 21,2
No formal schooling 3,5 3,0
EXPENDITURE ON GAMBLINGEXPENDITURE ON GAMBLING
57.1
30.5
9.1
2.1 0.9 0.3 0.1
0
10
20
30
40
50
60
Less thanR50
R51-R150 R151-R300 R301-R500 R501-R1000
R1001-R2000
More thanR2000%
IMPACT OF GAMBLING ON IMPACT OF GAMBLING ON HOUSEHOLD WELFARE LEVELSHOUSEHOLD WELFARE LEVELS
OBJECTIVE:
Propensity to gamble
Expenditure displacement
Impact on retail sales
PROPENSITY TO GAMBLEPROPENSITY TO GAMBLE(Def: % of h/h expenditure allocated to gambling = (Def: % of h/h expenditure allocated to gambling =
total spend - prizes)total spend - prizes)
Propensity 2001 = 1,30 %
= R6,8 billion
Propensity 2002 = 1,90 % (Estimate)
= R10,6 billion
Growth 2001 – 2002 = 46 %
PROPENSITY BY MODE: 2001
Propensity Per R100 gambled
Casino 0,91 % R70
Bingo 0,002 % 15c
Horse betting 0,20 % R15
Lottery 0,19 % R15
Total 1,30 % R100
INCREASE (1975 – 2000):• Education + 324 %• Health + 244 %• Communication + 201 %
EXPENDITURE DISPLACEMENTCHANGES IN H/H EXPENDITURE
CPI WEIGHTS: SERVICES GOODS
DECREASE:• Reading matter -65
%• Clothing & Footwear -63 %• Furniture -58
%• Cigarettes & tobacco -33 %
• Retail spending on goods• Expenditure on services• Other forms of gambling• Savings
EXPENDITURE DISPLACEMENT
SUBSTITUTION CAN BE EFFECTED FROM:
Household necessities Dissavings Postponement in procuring luxury items Other entertainment
IMPORTANT DISPLACEMENT ITEMS
Decline in savings Increase in household income Displacement from other items
Only latter will impact on existing retailers
IMPACT ON RETAIL OUTLETS
GAMBLING EXPENDITURE IS SOURCED FROM:
Initial or direct impact
+indirect impact
+induced impact
GAMBLING SECTOR’S CONTRIBUTION TO SA’S
ECONOMYTOTAL ECONOMIC IMPACT IS:
Initial impact = R3,0 billion Indirect and induced = R6,1 billion
Total impact = R9,1 billion
GDP CONTRIBUTION: 2000
INITIAL IMPACT = 0,38 % OF GDP TOTAL IMPACT = 1,13 % OF GDP
PROVINCES: - High population concentrations : 0,5% - 0,75% - Rural-oriented provinces : 0,25% - 0,5%
GDP CONTRIBUTION OF GAMBLING SECTOR: 2000
DISTRIBUTION BY PROVINCE:• Gauteng 53,5 % • Free State 0,3 %
• Western Cape 18,0 % • Limpopo <0,1 %
• KwaZulu-Natal 11,4 %
• Eastern Cape 5,9 %
• North West 5,5 %
• Mpumalanga 5,0 %
• Northern Cape 0,4 %
CONTRIBUTION TO CAPITAL INVESTMENT
• 1997-2000 = R10,1 billion
• Contribution to SA fixed investment = 2,1 %
• Gauteng 40,5 %
• North West 20,6 %
• Western Cape 10,9 %
• KwaZulu-Natal 9,8 %
• Eastern Cape 8,5 %
• Mpumalanga 4,2 %
• Free State 2,9 %
• Limpopo 1,8 %
• Northern Cape 0,9 %
DIRECT EMPLOYMENT DISTRIBUTION BY PROVINCE, 2000
CONTRIBUTION TO EMPLOYMENT, 2000
Direct employment 16 103 Indirect and induced 34 570 Total 50 673
REPRESENTS 1,1 % OF FORMAL SA JOBS (2000)
EMPLOYMENT BY RACE (INITIAL)
63.8
23.7
9.5
3
0
10
20
30
40
50
60
70
Africans Whites Coloureds Asians
%
COMPARISONS WITH INTERNATIONAL JURISDICTIONS
SA IN SADC: GROSS GAMING TURNOVER (GGT)
SA contribution
Gross casino turnover 84,4 %
Lottery 88,6 %
All modes : GGT 78,5 %
SA IN SADC : GROSS GAMING YIELD (GGY)
SA contribution
Gross casino yield 73,9 %
Lottery 89,1 %
All modes : GGY 76,0 %
RATINGS OF SOUTH AFRICA’S GAMBLING POSITION
World Ranking (2000)
GNI/capita 91
GGT/capita 28
GGY/capita 38
GCY/capita 17
Lottery sales/capita 46
PROPENSITY TO GAMBLE
SOUTH AFRICA 2001 : 1,30 % (GNI = $3 020)
2002 : +1,90 % N/A
USA 0,6 % (GNI = $34 100)
NEW ZEALAND 1,04 % (GNI = $12 990)
AUSTRALIA 3,10 % (GNI = $20 240)
GAMBLING ATTITUDES GAMBLING ATTITUDES USA VS. SAUSA VS. SA
73.0
51.0
14.8
28.0
12.216.0
0.05.0
0
10
20
30
40
50
60
70
80
Acceptable Ok for others Unaccepatable Refused
SA USA
CONCLUSION
It is probably safe to conclude that SA portrays a relatively vibrant gambling sector making it one of the
countries with the highest propensities to gamble.
This becomes more problematic in view of SA’s relatively low income per capita:
USA 11 x SA
Australia 7 x SA
New Zealand 4 x SA