Gambling Consulting Firms
The gambling industry in South Africa is set to grow at a compounded rate of more than 5% to reach nearly R35 billion ($2.5 billion) by 2021, according to a new report from PwC. Currently, the industry is valued at R27 billion, having grown from R26 billion in the last financial year.
Gambling has grown into a multi-billion Rand industry in South Africa ever since its legalisation in 1994. Twenty years later in 2014, the industry was worth more than R23 billion. Since, the Gross Gambling Revenues (GGR) in the country have risen another R4 billion to their current levels of R26.9 billion. The current state of the gambling industry and its components is highlighted in a new report from Big Four accounting and advisory firm PwC, titled ‘Gambling Outlook South Africa 2017-2021.’
The report reveals that the industry will surpass the R28 billion mark by the end of this financial year, growing at 4.5 %, which is almost a percentage increase from its growth figures last year. Till 2021, the industry will grow at a Compounded Annual Growth Rate (CAGR) of 5.3%, reaching a total value of R34.8 billion.
Among the components of the industry, some have had a more fortuitous time than others. For instance, Bingo has gained significant popularity in the country, having grown at a staggering 36.6% last year, by far the fastest growing segment. The growth is set to continue further, at a CAGR of 11.9% over the next four years, reaching a value of just over R2.2 billion.
Betting is also growing at a substantial rate, having increased by 14.3% last year, and projected to grow at a CAGR of 8.1% to hit a total value of R7.5 billion by 2021. Betting is a segment that performs particularly well, primarily due to the inclusion of legal sports betting and horse racing within its domain, both of which have been skyrocketing in recent years. Legal sports betting, which grew by 21% last year, has more than tripled its value since 2012, going from R847 million to R2.9 billion.
On the other hand, industry trends have not taken a lucrative turn for the casino gambling segment. The segment is the only one to register a drop in the last year, falling by 1.7% from R18.2 billion to R17.9 billion. This can be attributed to a number of factors, including overall economic conditions in the country that have squeezed spending power, as well as the emergence of a booming illegal gambling arena. However, the segment will recover from its current slump according to the report, projected to increase at 3.5% to R21.2 billion by 2021.
Other segments of the industry include Limited Payout Machines (LPM) and the National lottery, both of which are also due to increase. Currently at R2.7 billion, the LPM segment will grow at a relatively high CAGR of 7.5% to just short of R3.9 billion. Meanwhile, the National lottery segment, consistent with the past, is projected to record the lowest CAGR of 0.7% over the next few years, growing by R100 million from R3 billion to R3.1 billion.
Commenting on the findings of the report, Pietro Calicchio, Leader of the Hospitality and Gambling Industry for PwC in South Africa, said, “The gambling industry in South Africa will continue to be adversely affected in the near term by slower economic growth, but improving economic conditions over the latter part of the forecast period will aid growth. The industry remains an important contributor to the economy through the creation of jobs, continued capital expansion and the payment of taxes to both provincial and national government.”
Financial services, sports wagering, daily fantasy sports, horse racing, gaming, gambling aks.ventures is a global strategic consulting firm headquartered in North Texas. We advise and support clients with their key strategic issues, leveraging years of expertise to help them make informed decisions.
- Ex-casino manager founds gambling consultant firm in Connecticut. The Associated Press. Published 9:54 am EST. A consulting firm offering executive recruitment, placement and other services to.
- PGF Consultants is a consulting firm that was founded 25 years ago and an active player in the areas of strategy, organizational vitality, leadership and project management. Created to help.
- Modern Business Solutions LLC is the consulting company, offering financial, accounting services as well as business solutions, investor relationship management, business plan preparation and other business and financial consulting activities.
- Casinonomics Consulting is a small consulting firm focusing on the economic, social, and legal aspects of gambling.We deal with all varieties of government policy related to gambling, including casinos, online gambling, sports betting, and taxes, among others.
In this regard, the gambling industry is currently much like the retail industry of South Africa, which is also showing promising signs of growth despite the economic slowdown that the whole country is experiencing. At any rate, optimism has returned to the South African economy, as most top executives are confident in the country’s future, and are temping up their plans for investment.
Sports Betting Consulting Firms
Subscribe to our newsletter.
Casinonomics Consulting is a small consulting firm focusing on the economic, social, and legal aspects of gambling. We deal with all varieties of government policy related to gambling, including casinos, online gambling, sports betting, and taxes, among others. We can provide services including, but not limited to, academic literature reviews, data collection and analysis, economic impact studies, policy analyses, social cost estimation, and expert testimony.
Casinonomics is unique in the consulting world because, unlike many consultancies, all our staff have trained at the Ph.D. level in their disciplines and have applied their knowledge to different facets of the industry. The result is a final product composed by experts with a cutting-edge, comprehensive academic background.
Gaming Consulting Firms
For more information on our work, please select from the menu options above, or contact Doug Walker at dougwalker2@gmail.com.