Gambling industry revenues on the upswing

LEKOPANYE MOOKETSI
Correspondent | Monday July 8, 2013 00:00

 

The 2012 Casino Control Board annual report shows that the local gambling industry generated more than P200 million during the period under review.The report says the gaming revenues accumulated over this period amount to P208 million but show a marginal decline of four percent as compared to the 2010/11 period.According to the report, Grand Palm took a leading position in terms of gaming revenue earned ahead of Gaborone Sun Casino while Marang Casino of Francistown continued to maintain its third position and Menateng Casino of Selebi-Phikwe was fourth while Letsatsi of Palapye ranked fifth. 

Moonlite of Gaborone, which made more than P4 million, occupied the seventh spot, the report says.'The trend remained more or less unchanged with respect to other operators.'Grand Palm which is leading, made over P96 million during the period under review while Gaborone Sun came second with close to P70 million.The lowest performing casino is Teemane of Jwaneng, which generated more than a P1 million. 

The total levy paid to government amounted to P20 million as compared to P21 million achieved during the preceding financial year, a marginal 0.7 percent decrease.The report says in terms of gaming levy paid out to government, Grand Palm Casino took a leading position ahead of Gaborone Sun Casino while Marang Casino continued to maintain its third position.  Grand Palm paid more than P8 million to the government. 

With regard to entrance levy paid to government, Gaborone Sun took a leading position ahead of Grand Palm, Casino Marang of Francistown, Menateng Casino of Selebi- Phikwe and Letsatsi Casino of Palapye followed in terms of performance. According to the report, the year under review witnessed a significant decrease in entrance revenues collected.The entrance fee revenue collected decreased from more than P6 million to more than P4 million, representing a 32 percent decline.  Gaborone Sun seems to have performed exceptionally well and took a leading position of Grand Palm Casino with a margin of 29 percent.  The report says a notable improvement was realised by the Gaborone Hotel Casino, which is trading as Moonlite.

The chairman of the Casino Control Board, Thabiso Tafila attributed the casino revenue decline to the adverse global economic conditions. Tafila reflects that during the financial year 2011/12, the review of laws that regulate gambling was at an advanced stage.  He says the gambling legislation was reviewed to ensure that the industry is at par with technological advancement as well as development trends and changes in the regional and global environment.   The report notes that the casino industry remained resilient against the backdrop of continued global economic downturn.  A moderate decline in annual industry revenues in all categories was noted during the 2011/12 financial year, the report says.

But overall, there has been some significant growth to the revenue generated by the gaming industry.Ten years ago, the total amount generated by the gaming industry was only P81 million. In the financial year under review, the leading casino company, Grand Palm, made more than this amount, nearly hitting P100 million.There are 10 licensed casinos in Botswana, which are located in Gaborone, Selebi-Phikwe, Lobatse, Palapye, Francistown and Jwaneng.   Out of the 10 casinos, Sun International (Botswana) owns four that are operating in Gaborone, Selebi-Phikwe, Francistown and Palapye.   Another top hotel group, Peermont Global Botswana, trading as Grand Palm Casino, which operates three casinos located in Gaborone, Francistown and Selebi-Phikwe, follows Sun International.

African Leisure, Gradam Holdings and Moonlite Casino, each owns a casino in Lobatse, Jwaneng and Gaborone.In the past there has been resistance by some Batswana communities against the opening of casinos in their localities.  Batawana paramount chief, Kgosi Tawana once opposed a move by a leading hotel group to establish a casino in the tourist village of Maun.