Fewer South Africans are gambling, according to a new study on the socio-economic impact of the practice in South Africa conducted by the Bureau of Market Research at the University of South Africa. The study was commissioned by the National Gambling Board.
Unveiling the results of the study on Thursday, National Gambling Board chairperson Chris Fismer said they suggest that the South African gambling market has matured within a relatively short time span. The gambling industry now contributed just under 1% of South Africa’s economy or gross domestic product (GDP), while only 1,7% of household budgets was spent on gambling, the survey revealed.
“Participation in gambling has declined substantially compared to the frequency levels reported during the establishment phase of South Africa’s new gambling industry between 1997 and 2002,” said Fismer.
“Not only has the novelty effect worn off to some extent, but South Africans are better educated today about gambling, and have come to understand that it is a form of recreation and entertainment. Their expectations are much more realistic now in respect of winning prizes”.
The Bureau of Market Research found that South Africans spent R11,6-billion on gambling in 2005, or 0,9% of GDP, up from just under R9-billion in 2003, with casinos accounting for 70%, the lottery and scratch cards nearly 22%, and horse racing 6% of spending.
Participation in the national lottery, Fismer revealed, had declined from 71,3% in 2002 to 45,8% in 2005. At the same time, the percentage of respondents visiting casinos declined from 19,3% in 2001 to 7,1% in 2005. Overall, South Africans who did not participate in any form of gambling increased from 43,2% in 2002 to 50,2% in 2005.
“80,6% of South Africans either find gambling acceptable, or have no objection to gambling by others,” said Fismer. “19,3% are opposed to gambling. This suggests a pleasingly high level of public confidence in the strict regulatory regime which exists in South Africa, and an awareness that government has successfully leveraged the licensing process to extract public interest benefits from the industry such as new investment, tourism and other infrastructure, as well as significant job creation and black economic empowerment opportunities”.
National Gambling Board CEO, Advocate Tibbs Majake, said that the propensity of South Africans to gamble, being the percentage of household expenditure allocated to gambling, stood at 1,7 % of household income. This figure was lower than Asian countries (3,7%) and Australia (3,4%), and on par with jurisdictions in the United States, Europe and the United Kingdom.
The vast majority of South Africans gamble through the purchase of lottery tickets (45,8%), with 7,8% buying scratch cards and 7,1% gambling at casinos.
Of those who buy lottery tickets, just under half (45,1%) buy tickets twice a week while 27,6% buy them once a week, 9,6% once every two weeks, and 9,7% once a month.
“It is of concern to us that less affluent South Africans constitute just over a quarter of the gambling market,” Majake pointed out.
Of those in the survey earning less than R1 000 per month, the vast majority (73,3%) gambled through the purchase of lottery tickets or bought scratch cards (15,3%). Of this market, 6,4% visited casinos, 3,2% wagered on horses, and 1,2% gambled on limited payout machines.
Similar percentages applied to the unemployed, he added.
“Gambling and other entertainment expenditure increases in times of economic prosperity, as do retail sales, for example, so these results are not altogether surprising. As with propensity levels, we are seeing a clear trend that the growth in gambling in South Africa has stabilised and, as now, in future will largely follow movements in personal disposable income, notably in tandem with salary and wage increments.”
Meanwhile, the study also found that 0,52% of respondents could be considered compulsive or addictive gamblers, a number that was somewhat lower than those reported in studies conducted in 2003 and 2004. This figure was very much in line with recent research conducted by the national responsible gambling programme, as it was with general problem gambling levels found in other jurisdictions, and it was thus consistent with international norms, Majake observed.
Approximately 93,3 % of all respondents said there was no negative impact of gambling on them or their households.
Industry analyst Professor Peter Collins of the Centre for the Study of Gambling at Salford University in Manchester said that the Unisa study demonstrated that South Africa was a well-regulated jurisdiction, and was seen to be so.
“I think it is fair to say that government in South Africa has achieved considerable success in its policy-making for, and regulation of, its new gambling industry,” he commented.
“In particular, the market has matured in South Africa, and public awareness and education initiatives have met with some success as there is a much better understanding today of how gambling works, the dangers of gambling, and how to avoid them”.
The study was conducted among 3 100 respondents throughout the country late last year. ‒ I-Net Bridge