Legal gambling in South Africa has taken a nosedive over the past four financial years, despite the opening of new casinos, and revenues to provincial governments have been hit as a result.
The treasury’s intergovernmental fiscal review points out that in the 1997/8 financial year, the provinces received R290-million in gambling taxes, which dropped to R170-million two years later. Just R167-million is projected for the 2000/1 financial year.
Gambling income, which includes horse racing, betting and casino levies, was 10,4% down in the 1998/9 financial year and 34,5% the following year. The treasury estimates the income from gambling will rise to R187-million by the 2003/4 financial year, but this is still well below the 1997/8 figure.
It offers no explanation for the sharp decline in gambling revenues, but deteriorating economic conditions must be a factor.