Limited Payout Machines
As defined in the NGA, a ‘‘limited
pay-out
machine’’ means
a gambling machine with a restricted bet and prize.
The main role players in
the LPM sector can be defined in three specific categories, namely route and
independent operators, site operators and the National Central Electronic
Monitoring System (NCEMS). Route/independent operators are companies that are
licensed to own, manage and operate LPMs throughout the country. Site operators
are privately-owned hotels, pubs or eating establishments, totalisator or
bookmaker outlets which may be situated throughout the country. NCEMS is a
centralised LPM monitoring and evaluation system operating on a long-term
contract basis by Route Monitoring.
The total number of
licensed route/independent operators is reflected per province in table 6. This
includes route operators operating in more than one province. During FY2020/21
and as at 31 March 2021, Vukani Gaming operated in all nine provinces; Goldrush
Gaming operated in six provinces (Gauteng, KwaZulu-Natal, Limpopo, North West,
Northern Cape, and Free State); Grand Gaming operated in three provinces
(Gauteng, Western Cape and Mpumalanga); Crazy Slots and Hot Slots in Gauteng;
Kingdom Slots, KZN Slots, Luck@it and Great Bingo in KwaZulu-Natal; Varloflash,
Tshufi Gaming, I Slots, Vegas slots and Magic Slots operated in North West;
Pioneer operated in Eastern Cape and an independent operator was also
operational in Mpumalanga.
The regulations on LPMs
anticipated a roll-out of 50 000 LPMs in South Africa. This was to occur over
two phases, the first being 25 000 machines. On 20 June 2003, the first LPM
site was established and operated in Mpumalanga. Similar to the rapid
development of the casino industry in its early years, growth in GGR in the LPM
sector is largely a function of the roll-out of machines, as shown in the graph
below. The number of operational LPM site operators as well as the installed
LPMs and active LPM for FY2020/21 is illustrated on the table below.
The LPM sector
maintained a positive growth trend with growth in the gross gambling revenue
(GGR) generated by the sector increasing annually as illustrated on the graph
below. GGR increased by 14.1% between FY2015/16 and FY2016/17, followed by an
increase of 9.8% between FY2016/17 and FY2017/18, increased by 13.2% from FY2017/18
to FY2018/19 and increased by 9.9% in FY2019/20. The GGR generated by the LPM
sector during FY2020/21 was R2.4 billion, a fall by over a third (33.9%) from
the previous financial year FY2019/20 (R3.7 billion) owing to the effects of
the Covid-19 pandemic. GGR generated in the LPM sector represented 10.5% of the
total amount of GGR generated by all licensed gambling modes in FY2020/21.
.
Variable
|
Quarter 1
|
Quarter 2
|
Quarter 3
|
Quarter 4
|
1 Apr – 30
Jun 220
|
1 Jul – 30
Sep 2020
|
1 Oct – 31
Dec 2020
|
1 Jan – 31
Mar 2021
|
Operational LPM site operators
|
1 184
|
2 351
|
2 436
|
2 421
|
LPMs Installed
|
12 761
|
12 733
|
13 911
|
14 766
|
Active LPMs
|
12 789
|
12 778
|
13 409
|
13 034
|
|