the 2008 survey of casino entertainment · in 2008 the national gambling board (ngb) published its...

THE 2008 SURVEY OF

CASINO ENTERTAINMENT

IN SOUTH AFRICA

CASA and its members are committed to making

responsible gambling an integral part of our

daily operations at all our casinos throughout

South Africa. To advance this goal, CASA

members have agreed on a code of conduct

which details how we fulfil this pledge.

CONTENTS 2 Message from Chairman, David Coutts-Trotter 4 Introduction: Derek Auret, Chief Executive

Casino Association of South Africa 6 National Gambling Statistics: 2007/2008 Financial Year 10 Overview of Casino

Entertainment and Casino Groups Holding Licenses in South Africa 12 Profile of South African Casinos by Province

24 Casino Company Profiles 26 Corporate Social Investment 30 Code of Conduct 32 NRGP Treatment Centres

34 Regulatory Authorities in South Africa 36 Responsible Gambling Structures

TEXT PAGES 12/2/08 10:45 AM Page 1

I am pleased to introduce this fifth edition of the Survey ofCasino Entertainment in South Africa, an annual publicationwhich provides public policy makers, analysts and otherswith a valuable and comprehensive overview of the casinoindustry in our country. In this volume, the reader will findan exhaustive array of information on the sector'scontribution to national and provincial economies, data onemployment and tax revenues, and evidence of theindustry's considerable contribution to social responsibilityprogrammes and public infrastructure investment projects.

It reinforces CASA's belief that the experience of the pasttwelve years shows that South Africa's casino industry hasbecome a significant player in South Africa's provincialeconomies, the growth of the country's tourism business,and the expansion of safe and trustworthy recreationalopportunities.

At the time of writing, the global economy and financialmarkets are experiencing a period of unprecedentedturmoil.While current uncertainties and fears threatento upset global tourism and investment flows, SouthAfrica's relative stability - along with the promisingprospects of the 2010 Soccer World Cup - means thatwe have a unique window of opportunity to consolidateour position as an international destination.This editionof the survey again records the progress of an industrythat continues to expand and prosper in the face ofeconomic adversity.

If we are to continue upon this positive trajectory, thecasino sector will need to demonstrate levels ofcreativity, ingenuity and innovation that keep it at thecutting edge of a highly competitive international

industry. Importantly, therefore, this survey and itspredecessors have been able to track a steady growth inthe fortunes of this country's casino industry. In what isa clear demonstration of confidence in the industry'sfuture, this survey incorporates data which indicates thatcasinos in all provinces have undergone progressiveprogrammes of investment in refurbishment andexpansion. It also indicates that gambling revenues havecontinued to rise, while tax contributions, sectoremployment and payrolls have grown.

Sustained evidence of capital investment in casinosthroughout the country is proof that casinos recognisetheir role as partners with their host communities andare committed to contributing towards the economicprogress of provincial and local economies.

Thus, the fortunes of our industry need to be measuredby more than profitability and returns to shareholders.South Africa's gambling regulatory regime imposesstringent social responsibility expectations and these,too, are recorded in this survey.

I believe our industry has cause to be proud of theextent to which it has contributed to the materialwelfare of the communities within which it operates,whether by way of sizeable donations to charitableinstitutions, the provision of much-needed infrastructureand employment creation.This survey paints a picture ofan industry which is committed to serving the publicinterest, insistent in our conviction that we areaccountable, not only to our shareholders, but to thebroader South African society of which we are a part.

If the South African public is to retain its confidence in ourcasino industry, it is clearly necessary that we should beable to demonstrate, in a format which is accessible andcomprehensive, the economic benefits that casinos bring tolocal communities. In publishing this survey for the past fiveyears, CASA's objective has been to produce the mostcomprehensive information resource and reference toolon South Africa's casino business - a resource which willenable those who are interested to judge for themselvesthe contribution made by our casinos to the developmentof the South African economy.

I believe the 2008 Survey of Casino Entertainment inSouth Africa meets that objective and adds meaningfully toa national understanding of the facts about casino gambling.

2 I CASA SURVEY 2008

Message from Chairman:David Coutts-TrotterChairman Casino Association of South Africa


The survey again records the progressof an industry that continues to expand and prosper in the face ofeconomic adversity

The survey again records the progressof an industry that continues to expand and prosper in the face ofeconomic adversity


As in previous editions of the Casino Association of SouthAfrica's annual Survey of Casino Entertainment in SouthAfrica, the 2008 publication provides researchers, policymakers and the public with a reliable and comprehensiveoverview of the industry. It incorporates data ranging fromthe gambling tax contribution made by the commercialcasino sector to the corporate social investment activities ofindividual properties, and a province-by-province analysis ofcasino visitation and the number of people employed.

The data contained in this survey is drawn from statisticspublished by the national and provincial gambling boards, thecasinos themselves and independent studies. It complementsand consolidates the rich seam of related information whichis available in other occasional CASA publications and databases, and the research published by the National GamblingBoard and the National Responsible Gambling Programme.Taken together, these sources constitute a valuable andexhaustive guide to the South African casino industry.Aboveall, they testify to the openness and transparency with whichthe industry approaches its duty of accountability to thecountry's legislators and public.

Since its establishment in 2003, the Casino Association of SouthAfrica has sought to represent the interests of the country'slegal casino gaming industry, as well as the growing public thatthe industry serves. Our emphasis has been on playing aproactive and constructive role in the evolution of good publicpolicy and good governance in respect of the casino industry.Currently, CASA represents all but one of the companiesoperating in South Africa's commercial casino industry.

The sensible regulation of the gambling industry cannot takeplace in an information vacuum and it is therefore imperativethat lawmakers have at their disposal up-to-date anddependable knowledge of the social and economic impact oflegalised gaming in South Africa. It is precisely because itsdiligent compilation of empirical data such as that containedin this survey, that CASA has been at the forefront ofpreparing detailed industry submissions to national andprovincial governments and regulators when they haveconsidered changes to the gambling legislation or explorednew policy initiatives.

More than a decade has passed since South Africa introduced arigorously regulated legal gambling environment and in thattime we have developed a sector which, in terms of its socialresponsibility, profitability and demonstrable economic benefit,has become a model for emerging jurisdictions throughout theworld.As in previous editions of this survey, this one is able todemonstrate how the sector has matured since the passage ofthe National Gambling Act of 1996.The year under review hasagain witnessed the expansion and refurbishment of existingcasino properties, the opening of new casinos and ever-improving financial results.

In the midst of these positive trends, CASA and its member-casinos are acutely aware of their duty of care towardsthose who visit our properties, whether to gamble or toenjoy the numerous other recreational opportunities offeredto them.While our responsibilities to the gambling publicand the broader interests of society are clearly prescribed inlegislation, South Africa's casino industry has gone beyondthese legal obligations by ensuring adherence to the mostexacting standards of probity and corporate citizenship.Asthe record will show, we have been a steadfast partner in theadvancement of Government's policy objectives, responsiblecorporate citizens in our expenditure on social investment,and accountable licensees in the promotion of ethical andcrime-free gaming conduct.The sections of this surveydealing with our activities in the fields of corporate socialinvestment and responsible gambling are evidence of ourcommitment in this regard.

At the heart of CASA's mandate is to make a constructiveand informed contribution to the continuing evolution ofgood public policy and good governance in respect of thecasino industry. For that reason, the importance of researchand empirical evidence in policy-formulation cannot be over-emphasised. In many global jurisdictions, it is all too often thecase that anecdotal hearsay or unscientific prejudice areallowed to influence what should be a rational debate andcreate a climate which is not conducive to the establishmentof a stable, predictable and coherent regulatory environment.

CASA is committed to ensuring that South Africa's casinoindustry continues to play a leading and authoritative role inthe shaping of national gambling policy. Public policy isessentially the outcome of vigorous contestation and properlyresearched debate.With our wealth of experience andexpertise, we are uniquely able to engage in that debate andensure that our industry maintains its reputation for probity,social dutifulness and reliability.This survey is a contribution tothat conversation.

I have no doubt that this latest edition in our series of annualsurveys will furnish interested individuals and organisationswith the information that is necessary to gain an exhaustiveinsight into the casino industry's contribution to provincial andlocal economies, its impact on a national scale and its benefitsto the communities within which it operates.

Introduction: Derek AuretChief Executive Casino Association of South Africa



At the heart of CASA's mandate is to make a constructive and informedcontribution to the continuingevolution of good public policy andgood governance in respect of thecasino industry

At the heart of CASA's mandate is to make a constructive and informedcontribution to the continuingevolution of good public policy andgood governance in respect of thecasino industry


National Gambling Statistics: 2007/8 Financial Year

TAX CONTRIBUTION PER PROVINCE2007/2008 Financial Year

GROSS GAMBLING REVENUE PER PROVINCE2007/2008 Financial Year


In 2008 the National Gambling Board (NGB) published its survey of national gambling statistics for the 2007/2008 financial year, ending 31 March 2008, in which it reported that gross gambling revenue for the year was R15.618 billion, a 15.52% increase over the previous year'sR13.5 billion.

GGR PER GAMBLING MODE:2007/2008 Financial Year

TAX PER GAMBLING MODE:2007/2008 Financial Year

TOTAL R15 618 BILLION TOTAL R1 520 BILLION

TOTAL R15 618 BILLION TOTAL R1 520 BILLION

F State 2%

E Cape 7%

N Cape 1%

Casinos 84.3%

Betting 11.9%

Other 3.9% Bingo 3.3% LPM 0.6%

N West 6%

Limpopo 2%

Mpumalanga 4%

KZN 17%

W Cape 17%

Gauteng 44%

F State 2%

E Cape 7%

N Cape 1%

N West 4%

Limpopo 2%

Mpumalanga 2%

KZN 21%

W Cape 22%

Gauteng 39%

Casinos 81.7%

Betting 14.0%

Other 4.3% Bingo 3.5% LPM 0.7%


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INCREASE IN GAMBLING ACTIVITIES GGR ALL MODELS

CASINO INDUSTRY VALUE ADDEDSTATEMENT:WHERE THE MONEY GOES

CASA SURVEY 2008 I 7

Q1 93.7% 91.4%. 89.4% 75.0%Q2 93.1% 92.0% 89.4% 86.0%Q3 93.2% 92.2% 89.4% 79.4%Q4 92.9% 92.1% 89.4% 84.7%

GAMBLING MODE

TOTAL 92.6%

Figures aggregated by auditors Price Waterhouse Coopers


National Gambling Statistics: 2007/8 Financial Year (cont)


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Gauteng 1 356 409 687 1 487 918 022 1 410 334 361 1 405 235 773

W Cape 536 963 903 547 658 421 583 159 888 567 549 395

KZN 528 327 275 523 890 073 560 644 370 542 794 399

Mpumalanga 130 717 437 138 906 316 139 495 690 130 803 382

Limpopo 65 165 566 60 964 874 70 038 843 65 781 347

N West 203 109 223 216 057 888 220 970 220 221 103 877

N Cape 37 469 911 41 603 063 40 541 946 41 027 406

E Cape 224 431 782 220 912 763 250 893 939 222 093 864

F State 93 227 057 89 618 019 98 186 201 90 702 425

FISCAL QUARTER

QUARTERLY CASINO GGR2007/2008 Financial Year

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Gauteng 122 076 871 133 912 622 126 930 092 126 471 219

W Cape 65 245 356 67 086 023 72 126 174 69 940 727

KZN 56 977 180 56 400 790 58 847 794 58 738 807

Mpumalanga 6 535 872 6 945 316 6 974 784 6 540 169

Limpopo 3 909 934 3 657 892 4 202 331 3 946 881

N West 13 154 456 14 282 420 15 139 551 14 710 504

N Cape 2 813 638 3 152 327 3 243 354 3 282 193

E Cape 17 282 446 17 054 852 19 810 095 37 887 905

F State 5 718 409 5 493 343 5 909 898 5 568 534

FISCAL QUARTER

QUARTERLY CASINO TAX / LEVIES2007/2008 Financial Year



cont)

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F08 Q1 F08 Q2 F08 Q3 F08 Q4

Gauteng 20 884 788 970 22 158 202 100 21 575 021 643 20 236 349 639

W Cape 8 732 631 603 8 730 208 571 9 272 000 883 9 308 061 120

KZN 7 946 124 322 7 936 139 603 8 616 572 780 7 291 763 020

Mpumalanga 1 898 803 754 1 979 520 991 2 043 462 041 1 951 997 262

Limpopo 1 049 277 052 1 050 960 834 1 115 982 319 1 016 769 330

N West 3 636 656 382 623 021 718 670 587 453 617 921 297

N Cape 635 705 546 701 314 496 948 111 741 699 604 456

E Cape 3 695 554 321 3 618 563 952 3 965 266 423 3 561 606 187

F State 1 572 420 345 1 526 936 254 1 626 257 323 1 542 997 435

FISCAL QUARTER

QUARTERLY CASINO TURNOVER2007/2008 Financial Year



Overview of Casino Entertainment

Queen’s Casino

Khoroni Hotel

CASINO GROUP HOLDING LICENCES IN SOUTH AFRICA

Sun Peermont Century London Tsogo Sun Akani/ NotInternational Global Casinos Clubs Gold Reef CASA

International members

Eastern Cape 2 1 1Free State 2 1 1Gauteng 2 1 1 1 2KwaZulu-Natal 1 1 1 1 1Limpopo 1 1Mpumalanga 1 2North West 2 2Northern Cape 1 *2Western Cape 2 1 2Total 13 7 2 1 5 7 2

* Desert Palace and Leitlho Resort and Entertainment World (not yet opened) are not members of CASA

TEXT PAGES 1/7/09 1:51 PM Page 10


South Africa's casino industry hasbecome a significant player in SouthAfrica's provincial economies, the growthof the country's tourism business, andthe expansion of safe and trustworthyrecreational opportunities.

South Africa's casino industry hasbecome a significant player in SouthAfrica's provincial economies, the growthof the country's tourism business, andthe expansion of safe and trustworthyrecreational opportunities.


Profile of South African Casinos by Province

EASTERN CAPE

Current number of casinos 4Proposed number of casinos 5Number of tables 59Number of machines 1 834Casino employees 3 199Gross casino gaming revenue R918 millionCasino gaming tax revenue R92 millionVisitors 5 247 404Provincial gaming tax base

Taxable revenue(millions) Rates of tax

0 – 4 3.0%4 – 8 120 000 5.0%>8 320 000 10.0%

PORT ELIZABETH: THE BOARDWALK

Date opened October 2000Operator Emfuleni Resorts (Pty) LtdManagement company Sun International Management LtdTotal capital investment R516 millionEmployees 1 395

Permanent 368Casual 0Outsourced 1 027

Slots 826Tables 25Visitors 3 044 682

EAST LONDON: HEMINGWAYS CASINO

Date opened September 2001Operator Tsogo Sun Emonti (Pty) LtdManagement company Tsogo Sun Casino

Management CompanyTotal capital investment R222 millionEmployees 326

Permanent 214Casual 0Outsourced 112


BIZANA: WILD COAST SUN

Date opened December 1981Operator Transkei Sun International LtdManagement company Sun InternationalTotal capital investment R338 millionEmployees 1 218


Slots 438Tables 16Visitors 780 000

QUEENSTOWN: QUEEN’S CASINO

Date opened December 2007Operator Lukhanji Leisure (Pty) LtdManagement company Lukhanji Leisure ManagementTotal capital investment R110 millionEmployees 260



MTHATHA:

Tenders have been requested by Eastern Cape Gambling board



FREE STATE

The casino sector will need to demonstrate levels ofcreativity, ingenuity and innovation that keep it at the

cutting edge of a highly competitive international industry

Current number of casinos 4Proposed number of casinos 4Number of tables 34Number of machines 820Casino employees 1 531Gross casino gaming revenue R371 millionCasino gaming tax revenue R23 millionVisitors 2 523 819Provincial gaming tax base


5.7%

BETHLEHEM: FRONTIER INN AND CASINO

Date opened November 2006Operator Peermont Global

(Eastern Free State) (Pty) LtdManagement company Peermont Global (Pty) Ltd Total capital investment R110 millionEmployees 220



BLOEMFONTEIN: WINDMILL CASINO

Date opened October 2005Operator Mangaung Sun (Pty) LtdManagement company Sun InternationalTotal capital investment R191 millionEmployees 770



THABA ‘NCHU: NALEDI SUN

Date opened May 1989Operator Sun InternationalManagement company Sun InternationalTotal capital investment R14 millionEmployees 130



WELKOM: GOLDFIELDS CASINO AND ENTERTAINMENT CENTRE

Date opened December 2003Operator Goldfields Casino and

Entertainment Centre (Pty) LtdManagement company Gold Reef Management (Pty) LtdTotal capital investment R156 millionEmployees 411





Profile of South African Casinos by Province (cont)

GAUTENG

Current number of casinos 7Proposed number of casinos 7Number of tables 314Number of machines 8 700Casino employees 11 737Gross casino gaming revenue R6 billionCasino gaming tax revenue R509 millionVisitors 23 907 413Provincial gaming tax base


9.0%

FOURWAYS: MONTECASINO

Date opened November 2000Operator Tsogo Sun Casinos (Pty) LtdManagement company Tsogo Sun Casino

Management LtdTotal capital investment R2.7 billionEmployees 2 182

Permanent 1 194Casual 0Outsourced 988

Slots 1 700Tables 76Visitors 9 728 898

JOHANNESBURG: GOLD REEF CITY

Date opened October 1998Operator Akani Egoli (Pty) LtdManagement company Akani Egoli Management (Pty) Ltd Total capital investment R1 5 billionEmployees 1 632

Permanent 1 057Casual 160Outsourced 415


MABOPANE: MORULA SUN CASINO

Date opened June 1987Operator Sun InternationalManagement company Sun InternationalTotal capital investment R191 millionEmployees 633





Gambling revenues have continued to rise, while taxcontributions, sector employment and payrolls have grown

VANDERBIJLPARK: EMERALD CASINO RESORT

Date opened December 1998Operator London Clubs InternationalManagement company LCI/Harrah’s EntertainmentTotal capital investment R650 millionEmployees 1 200



KEMPTON PARK: EMPERORS PALACE HOTEL,

CASINO AND CONVENTION RESORT

Date opened December 1998Operator Peermont Global (Pty) LtdManagement company Peermont Global (Pty) LtdTotal capital investment R1.5 billionEmployees 2 695

Permanent 1 474Casual 20Outsourced 1 200


BRAKPAN: CARNIVAL CITY

Date opened December 1998Operator Afrisun Gauteng (Pty) LtdManagement company Sun InternationalTotal capital investment R1 billionEmployees 2 248



WEST RAND: SILVERSTAR CASINO RESORT

Date opened December 2007Operator Silver Star Development LtdManagement company N/ATotal capital investment R1 billionEmployees 1 148






KWAZULU-NATAL



30 9.0%>30 12.0%+0.5% local government levy

DURBAN: SUNCOAST CASINO AND ENTERTAINMENT WORLD

Date opened November 2002Operator Tsogo Sun KZN (Pty) LtdManagement company Tsogo Sun Casino

Management CompanyTotal capital investment R1.4 billionEmployees 1 219



DURBAN: SIBAYA CASINO AND ENTERTAINMENT KINGDOM

Date opened December 2004Operator Afrisun KZN (Pty) LtdManagement company Sun International Total capital investment R1 billionEmployees 1 614



EMPANGENI: TUSK UMFOLOZI CASINO RESORT

Date opened May 2002Operator Peermont Global (KZN)

(Pty) LtdManagement company Peermont Global

Management (KZN) (Pty) LtdTotal capital investment R80 millionEmployees 244





The fortunes of our industry need to be measured bymore than profitability and returns to shareholders

NEWCASTLE: CENTURY CASINO NEWCASTLE

Date opened September 1999Operator Century Casinos Newcastle

(Pty) LtdManagement company Century Casinos Africa (Pty) LtdTotal capital investment R150 millionEmployees 290



PIETERMARITZBURG: GOLDEN HORSE CASINO

Date opened September 2001Operator Akani Msunduzi (Pty) LtdManagement company Akani Msunduzi

Management (Pty) LtdTotal capital investment R264 millionEmployees 644






LIMPOPO

Current number of casinos 2Proposed number of casinos 3Number of tables 23Number of machines 516Casino employees 884Gross casino gaming revenue R261 millionCasino gaming tax revenue R16 millionVisitors 1 882 081Provincial gaming tax base


6.0%

POLOKWANE: MEROPA CASINO

Date opened March 2002Operator Meropa Leisure and

Entertainment (Pty) LtdManagement company Sun InternationalTotal capital investment R217 millionEmployees 637



THOHOYANDOU: KHORONI HOTEL CASINO ANDCONVENTION CENTRE

Date opened March 1983Operator Peermont Global (Limpopo)(Pty) LtdManagement company Peermont Global Management

(NW&L) (Pty) LtdTotal capital investment R122 millionEmployees 247





MPUMALANGA

Our industry has cause to be proud of the extent towhich it has contributed to the material welfare of the

communities within which it operates



5.7%

WITBANK: THE RIDGE CASINO AND ENTERTAINMENT RESORT

Date opened March 1998Operator Tsogo Sun Casinos (Pty) LtdManagement company Tsogo Sun Casino




SECUNDA: GRACELAND HOTEL,CASINO AND COUNTRY CLUB

Date opened October 1997Operator Peermont Global (Southern Highveld)

(Pty) LtdManagement company Peermont Global LtdTotal capital investment R168 millionEmployees 494



NELSPRUIT: EMNOTWENI CASINO

Date opened October 1997Operator Tsogo Sun Casinos (Pty) LtdManagement company Tsogo Sun Casino







NORTH WEST



3.0%

MMABATHO: TUSK MMABATHO CASINO RESORT

Date opened September 1977Operator Peermont Global (North West)

(Pty) LtdManagement company Peermont Global Management




PILANESBURG: SUN CITY

Date opened December 1979Operator Sun InternationalManagement company Sun International Total capital investment R2 billionEmployees 5 748



KLERKSDORP: TUSK RIO CASINO RESORT

Date opened September 2004Operator Peermont Global

(North West) (Pty) LtdManagement company Peermont Global Management




HAMMANSKRAAL: THE CAROUSEL

Date opened November 1991Operator Sun InternationalManagement company Sun International ManagementTotal capital investment R527 millionEmployees 800





NORTHERN CAPE

The year under review has again witnessed the expansionand refurbishment of existing casino properties, the

opening of new casinos and ever-improving financial results

Current number of CASA-affiliated casinos 1Proposed number of casinos 3Number of tables 9Number of machines 235Casino employees 336Gross casino gaming revenue R160 millionCasino gaming tax revenue R12 millionVisitors 873 000Provincial gaming tax base


8.0%(2% Development Trust)

KIMBERLEY: FLAMINGO CASINO

Date opened March 2002Operator TeemaneManagement company Sun InternationalTotal capital investment R133 millionEmployees 336



DESERT PALACE

NOT A MEMBER OF CASA

KURUMAN: LEITLHO RESORT AND ENTERTAINMENT WORLD

NOT A MEMBER OF CASADate opened Anticipated opening August 2008Operator Kgalagadi Casino ResortManagement company Kgalagadi Casino Resort




WESTERN CAPE




0 - 10 6.0%10 - 20 R 600,000 8.5%20 - 30 R1,45m + 11.0%30 - 40 R2,25m + 13.0%40 - 50 R3,83m + 15.0%>50 R5,35m + 17.0%

CAPE TOWN: GRANDWEST

Date opened December 2000Operator SunWest InternationalManagement company Sun InternationalTotal capital investment R2 billionEmployees 2 113



CALEDON: CALEDON HOTEL, SPA AND CASINO

Date opened November 2000Operator Century Casinos Caledon

(Pty) LtdManagement company Century Casinos Africa

(Pty) LtdTotal capital investment R163 millionEmployees 265



LANGEBAAN: CASINO MYKONOS

Date opened November 2000Operator West Coast Leisure (Pty) LtdManagement company Gold Reef Management

(Pty) LtdTotal capital investment R66 millionEmployees 272




We have developed a sector which, in terms of its socialresponsibility, profitability and demonstrable economicbenefit, has become a model for emerging jurisdictions

throughout the world

MOSSEL BAY: GARDEN ROUTE CASINO

Date opened December 2002Operator Garden Route Casino (Pty) LtdManagement company Gold Reef Management (Pty) Ltd

and Osner TrustsTotal capital investment R131 millionEmployees 355



WORCESTER: THE GOLDEN VALLEY CASINO

Date opened November 2006Operator Worcester Casino (Pty) LtdManagement company Sun InternationalTotal capital investment R202 millionEmployees 359





Century Casinos Africa (Pty) LtdCentury Casinos, Inc., an international casinoentertainment company founded in 1993 in the USState of Delaware, owns or operates 18 casinos inUSA, Canada, South Africa, the Czech Republic,Poland and aboard cruise ships. Century Casinoshas been listed on the NASDAQ Capital Marketsince 1994 and on the Prime Market of the ViennaStock Exchange since 2005.

The company owns and/or operates WomacksCasino and Hotel in Cripple Creek, Colorado;Century Casino and Hotel near Denver, Colorado;Century Casino and Hotel in Edmonton, Canada; andCentury Casino Millennium in Prague, CzechRepublic.Through concession agreements, CenturyCasinos operates five casinos aboard the ultra-luxurySilver Cloud (a Silversea cruise vessel), the World ofResidensea and the vessels of Oceania Cruises.

Through its Austrian subsidiary, Century CasinosEurope, Century Casinos holds a controlling 33.3%stake in Casinos Poland Ltd., the owner and operatorof seven full casinos and one slot casino located ininternational four- and five-star hotels in Poland.

Through its subsidiary Century Casinos Africa (Pty)Limited, it owns and operates The Caledon Hotel,Spa and Casino near Cape Town, as well as 60% ofthe Century Casino Newcastle, in Newcastle,where it provides technical casino services.

In December 2007, century Casinos paid anadditional R 3.7 million towards the purchase of its

60% interest in the Newcastle property.Theremaining R1.3 million was to be payable subject tothe finalization of a SA Revenue Service tax auditpertaining to periods prior to the acquisition.

In September 2008, it was reported that CenturyCasinos had expressed a willingness to sell part orall of its South African casino interests after itreceived several verbal indications of interests bymore than one party.The company announced thatinterested parties were being invited to submittheir expressions of interest in writing to the boardfor consideration.

Gold Reef Casino Resorts LtdGold Reef Resorts Ltd's interests incorporate AkaniEgoli (Pty) Limited, which operates Gold Reef CityCasino and Theme Park,West Coast Leisure (Pty)Limited, which operates Mykonos Casino,AkaniMsunduzi (Pty) Limited, which operates GoldenHorse Casino, Garden Route Casino (Pty) Ltd,which operates the Garden Route Casino, andGoldfields Casino and Entertainment Centre (Pty)Ltd, which operates Goldfields Casino. During theyear under review, Silverstar Development Ltdopened the Silverstar Casino on the West Rand, andLukhanji Leisure (Pty) Ltd launched Queens Casinoin the Eastern Cape.

Gold Reef is currently trading under cautionary asthe group has been approached by Tsogo Sun todiscuss a possible offer for Gold Reef.Theannouncement points out that there can be nocertainty at this stage that an offer will be made.

London Clubs InternationalLondon Clubs International has casinos in the UK, Egypt, Lebanon and South Africa (EmeraldCasino Resort).

In 2006, the company was acquired by US-basedHarrah's, the world's largest casino owner andoperator.

Peermont GlobalPeermont Global was incorporated in May 1995and changed its name from Global Resorts SA (Pty)Ltd to Peermont Global Limited in 2004. In April2007, a BEE consortium led by the MineworkersInvestment Company (Pty) Ltd acquired all theissued share capital of Peermont in a transaction

Casino Company Profiles



valued at R7.3-billion, resulting in 75% Black controlof Peermont. thereby creating one of South Africa'slargest Black-owned and controlled gamingcompanies.

Peermont is the holder of the second largestnumber of casino licences in South Africa, owningand operating a total of 14 properties - nine inSouth Africa and five in Botswana.Together, theseproperties offer 1 274 hotel rooms, 3 174 slotmachines and 143 gaming tables. In addition to itsflagship Emperors Palace Hotel, Casino andConvention Resort in Johannesburg, Peermontowns and manages the Graceland Hotel Casino andCountry Club in Secunda, the Frontier Inn andCasino in Bethlehem, the Rio Casino Resort inKlerksdorp, the Tusk Mmabatho Casino in Mafikengand the Khoroni Hotel, Casino and ConventionResort in Thohoyandou, Limpopo. In Botswana, thegroup operates the Grand Palm Hotel Casino andConvention Resort in Gaborone, the SedibengCasino in Francistown and the Syringa Casino inSelebi-Phikwe.

The Peermont board has approved the relocation ofthe Tusk Umfolozi Casino at Empangeni to theRichards Bay waterfront area, at a budgeted cost ofR233 million. Construction is expected to commencein the first quarter of 2009, with the resort plannedto open in the second quarter of 2010.

Sun InternationalSun International was established in 1983 and listedon the Johannesburg Stock Exchange in 1985.Thegroup's operations include resorts, luxury hotelproducts, and mass market casinos in 14jurisdictions in South Africa, Zambia, Botswana,Namibia, Lesotho and Swaziland.

More than half of this portfolio has been developedin the last eleven years, with new projects underwayin West Africa and South America. Every day, over50 000 customers from over 50 countries visit aSun International property.

Over a period of three decades, the group hasinvested more than R14 billion in new tourisminfrastructure. It employs over 8 000 people, hasindirectly created 50 000 new employmentopportunities in the broader tourism industry, and

it has been estimated that its business has a directimpact on the livelihood of more than 500 000people in southern Africa.

Sun International has casino licenses in eight ofSouth Africa's nine provinces.The group operates21 casinos in southern Africa, including 13 of the 40casino licences in South Africa.

The group is the leading casino operator in thesouthern hemisphere and enjoys a 44% share of theoverall Gross Gaming Revenue (GGR) of the SouthAfrican casino market.

During the year under review, the casinocomponent of the Monticello Grand Casino andEntertainment World located to the south ofSantiago in Chile was opened. In Nigeria, theFederal Palace Towers Hotel on Victoria Island,Lagos, has been under the group's managementsince October 2007.The terms of the gaminglicence have been finalised with the Lagos Stateauthorities and the enabling regulations are in theprocess of being approved by the State Legislature.The licence is expected to be issued shortly,following which the group will acquire a 49.5%equity interest in the business.

Tsogo SunTsogo Sun Gaming is one of two companies ownedby Tsogo Sun Holdings, the other being SouthernSun Hotels.Tsogo Sun Holdings has a shareholdingsplit between Tsogo Investments (51%) andSABMiller (49%).

Tsogo Sun Gaming incorporates five casinoproperties: Montecasino in Johannesburg, SuncoastCasino and Entertainment World in Durban,Hemingways in East London, the Ridge Casino andEntertainment Resort in Witbank and theEmnotweni Casino in Nelspruit.

Johnnic has a 9.7% effective interest in Tsogo Sunand a 30% effective interest in Tsogo Sun KwaZulu-Natal through its holdings in gaming companyDurban Add Ventures which owns and operates theSuncoast Casino and Entertainment World complexin Durban.



Peermont invests over R22 million annually incorporate social responsibility programmes.This ismainly concentrated on education, skills-development and community projects - often inpartnership with local municipalities.

The group's Thuthuka Gauteng SupplementaryEducation initiative provides disadvantaged learnerswith the numerical, literacy and accounting skillsrequired to enter tertiary education. In partnershipwith the South African Institute of CharteredAccountants (SAICA), the project aims to increasethe number of historically disadvantaged groupsentering the accounting profession.To date, morethan 367 teachers and 2 625 learners havebenefited from this programme, in which Peermonthas invested R53 million over five years.

The East Rand Youth and Southern Highveld Trustshelp disadvantaged students gain access to tertiaryeducation by providing them with bursaries (95university and 164 college scholarships), while theEast Rand Children's Trust provides educational andsocial support for children from impoverishedcommunities in Ekurhuleni.

At Emperors Palace, Peermont has, in associationwith the Community Monitoring Services and theSouth African Police Service, developed the WinnieMandela Community Project in Tembisa in an effortto combat crime in the area. Since its inception inJuly 2007, the project has been one of the majorcontributors to a 60% decrease in the area's crimerate, according to police statistics.

Emperors Palace and the Ekurhuleni municipalitylaunched the Thokoza Walkways project, acollaborative effort that saw the development of a25km walkway through the township and theplanting of trees along the route.

Gold Reef Resorts continued its funding of theSouth African Apartheid Museum, which is operatedby a Section 21 Company. Other bodies benefittingfrom Gold Reef City Casino and Theme Park's CSIdisbursements included the Ithuba College, the MiniCare Centre for Abused Children and the LittleRoses Daycare Pre-School.

Donations made by the Golden Horse Casinoincluded those to an educational science centre, theCareways Group (an organisation providingcounselling to people with HIV and AIDS) and theCommunity Chest, which received 130 beds. InDecember the casino sponsored an orphans'Christmas party for 240 disadvantaged children in arestaurant within the casino complex.

The Mykonos Casino donated 5% of its auditedpre-tax profits to the West Coast Community Trustfor distribution among bodies active in the areas oftourism and community development.Among thesewere organisations providing home-based care andthe Matzikama municipality's programme to provideplaygroup facilities for pre-school children.

The Garden Route Casino contributed to a localcommunity trust which allocates funds to communityprogrammes such as environmental, reconstructionand development projects.The major projects of theGarden Route Casino Community Trust includefinancial assistance to the Diaz Museum'sarchaeological project, assistance with the upgradingof the St Blaze hiking trail, financially assisting localwelfare organizations and supporting the upgrading oflocal underprivileged schools and creches.

At the Goldfields Casino, the R1-million CSIcommitment attached to the temporary licencecondition was used to renovate the local SANCAoffices, to develop sport facilities in low-incomecommunities, to support the educationdepartment's vulnerable learners school uniformprogramme, and to renovate local schools. In termsof the casino's permanent licence conditions, 1.5%of the casino's profit after tax will be be spent oncommunity and social investments.

Corporate Social Investment



Queens Casino is committed to donating 3% of netprofit before tax to the Zulu Kama Trust, which willbe responsible for development projects within theQueenstown community.The Trust also holds a4.5% shareholding in the company and is party tothe Queens Casino management contract.Thecasino has also restored the local municipality'sWalter Evert Gardens, while donations were madeto the rape crisis centre and towards Christmasgifts for old age homes.

Since its opening in December 2007, the Silver StarCasino has contributed to the Roodepoort BlackEagles Project. In future, 1% of gross gaming revenueplus 1% of EBITDA will be distributed to CSIprogrammes, while half a percent of gross gamingrevenue will be allocated to the West RandDevelopment Trust.

During the year under review, the Tsogo SunGroup spent over R10.9 million on child-focussedwelfare projects.The Feedback Food RedistributionProgramme, for example, was provided with over35.343Kg of food valued at R989 604.Among otherinitiatives, 784 children benefited from a back-to-school programme which assists children withuniforms and school material, and their schoolswith desks, chairs and computers.This programmebenefitted by R345 000.

In KwaZulu-Natal,Tsogo Sun undertook a numberof projects, including the upgrading of a children'shome under the Right to Live umbrella, and in theEastern Cape assistance to the value of R750 000was given to the refurbishment of a children's homein East London. Help was also extended to 1 000guest houses owned and operated by previouslydisadvantaged communities, by enabling them togain skills in marketing, computers and officemanagement.

The group also supported Business Against Crime,which received funding assistance of R500 000. Onthe sporting front, contributions were made todevelopment programmes run by the Lions and theBlue Bulls rugby, and R2.7 million was allocated tosimilar projects under the auspices of the KwaZulu-Natal Cricket Union.

The Sun International group contributes 2% ofnet profits to its corporate social investmentprojects, with the main focus being on health andwelfare, education, community development, andsports, arts and culture.

In the field of health and welfare, among the group'smajor beneficiaries is Reach For A Dream, whichassists hospitalised children and those who havelife-threatening diseases. Each Hollywood SlotJackpot won at the group's casinos results in a R500contribution to this project. Contributions are alsomade to the Tapologo Aids Hospice, Emmanuel'sHaven in the Eastern Cape - which providescounselling, care-giving and training and runs ahydroponics farm producing vegetables forsustenance - and the Sentahle Home Based CareCentre in Limpopo, where the community of Ga-Maja can access various services designed toalleviate the effects of HIV/Aids. In the WesternCape, the group supports the Shawco CommunityHealth Project, and on the East Rand assistance isgiven to the Thabo Mbeki Hospice.

On the education front, Carnival City supports theCRESCO skills development project, which is aninitiative providing emerging entrepreneurs with

Corporate Social Investment (cont)



training on how to run a business. In the WesternCape, the Eziko Cooking School provides trainingopportunities in the hospitality industry.This projectenables trainees from the school to be placedwithin Sun International for their internship.

Sun City has been responsible for the developmentof the Mma Kodisang Early Learning Centre and inLimpopo the Meropa Casino has built fourclassrooms at the Sekwala Primary School in inPolokwane.

GrandWest Casino in Cape Town, supported by theWestern Cape government, has established theSoundtrack 4 Life project to provide effectiveHIV/Aids education and awareness. GrandWest hasalso continued to operate its CSI Bursary fund forstudents from disadvantaged backgrounds who wishto access a better education and the mainstreameconomy.

Support to community development organisationshas included assistance to Blisters for Bread, aproject which raises funds for Peninsula SchoolFeeding to feed thousands of Western Capeschoolchildren who would otherwise be going toschool on empty stomachs.The Meropa Casino hashelped with the development of the FarananiHydroponic Project, which enables the localcommunity to grow its own vegetables.TheWindmill Casino in Bloemfontein built a policestation to assist with crime prevention in the areaaround the property.

Carousel Casino has concentrated on the highlevels of unemployment in its area, contributing tothe Men on the Side of the Road Project, whichteaches skills to unemployed matriculants in brick-laying and tiling to give them a better chance atformal employment.

Other beneficiaries have included the National SeaRescue Institute, the South African ChefsAssociation and the Wildlife Trust.

Sun International has for several years been a majorsponsor of the South African Paralympic team andis also a founding member of the Arts and CultureTrust, which has supported more than 500 projectssince 1996. In KwaZulu-Natal, the Sibaya Casino hassupported the development of soccer in localcommunities through the Sibaya Bootlaces FootballAcademy, which participated in the 20th'Metropolitan Premier Cup' in Cape Town over theEaster Holidays.

The group has also been active in CSI projects inneighbouring countries, including the constructionof a community hall in Palapye by Gaborone Sun. InNamibia, funding assistance has been given to theMount Sinai Centre which cares for HIV-positivemothers and distributes food hampers for babies toensure their necessary nutrition. In the samecountry, the Hope Village Clinic provides refuge andsupport to women, orphans and vulnerable childrenaffected by HIV/Aids.

In Lesotho, the Beautiful Gate Home wascompleted during this financial year and the clinicwill help alleviate the scourge of HIV/Aids andother diseases.The Ezulwini Clinic was built tobring medical services to the community in theEzulwini area of Swaziland, while in Zambia SunInternational properties continue to play a key rolein meeting various needs of the community inLivingstone. Sustainable projects here include thehydroponics farm, the Mukuni Basic School and theLubasi orphanage, which were assisted during thisfinancial year.

A significant amount of the CSI spend by CenturyCasino Newcastle went towards the relocationof the Newcastle Community Radio Station to thepremises of the casino.A specifically designed studiowas build which are occupied rent free by thestation.The casino also donated all the sound andother equipment for the studio to ensure theproper functioning of the radio station.

Emerald Casino contributed R743 000 to theirCSI projects for the year under review.



CASA and its members are committed to makingresponsible gambling an integral part of our daily operationsat all our casinos throughout South Africa.To advance thisgoal, CASA members have agreed on a code of conductwhich details how we fulfil this pledge.

The following are the relevant sections of the code:

Commitment to our Customers

Responsible Gambling• CASA members will make available brochures regarding

responsible gambling and where to find assistance.Thesewill be available and visible in gaming areas.

• CASA members will make available on their web sitesinformation regarding responsible gambling and where tofind professional help.

• CASA members will display in gaming areas signagebearing a toll-free problem gambling counselling line.

• CASA members will provide opportunities forcustomers to request in writing that they not be sentpromotional mailings and for revocation of theirprivileges for specific casino services such as loyalty cardpromotions. In addition, each CASA member shall makereasonable efforts to honour a written request from anyperson that it not knowingly grant that person access togaming activities at one or more of its properties.

• CASA members reserve the right to exclude a patronfrom gaming, without a request from the patron.

Underage Gambling and Unattended Children in Casinos• CASA members will make diligent efforts to prevent

children from loitering in the gaming area of a casino.• CASA members will communicate the legal age to

gamble through appropriate signage and/or brochures.• Employees working in relevant areas will receive training in

appropriate procedures for dealing with unattendedchildren, underage gambling, and the purchase andconsumption of alcohol and tobacco by underage persons.

• Where, in the opinion of management, an unaccompaniedchild on the complex appears to be at risk, appropriatepersonnel will be contacted and remain with the childwhile reasonable steps are taken to locate the parent orresponsible adult on property or by telephone. If effortsare unsuccessful, the unaccompanied child will be releasedto the care of an appropriate third party.

Alcohol • CASA members will observe a responsible beverage

service policy and not knowingly serve alcoholicbeverages to an underage person.

Responsible AdvertisingThis code applies to the advertising and marketing of casinogaming by CASA member companies. It does not pertain toadvertising and marketing that is primarily of hotels,restaurants and entertainment that are often associatedwith or operated by casinos. For the purposes of this code,and as reflected in the national regulations, advertising andmarketing include radio and television ads broadcast off thepremises, print, brochures, direct mail, billboard and internetpromotions.

All casino advertising and marketing will:• Be consistent with principles of dignity and integrity and

subject to the jurisdictions in which it operates.• Contain the NRGP’s responsible gambling message and

the NRGP’s toll-free problem gambling counselling line.• Reflect generally accepted contemporary standards of

good taste.• Make no false or misleading claims.

Casino advertising and marketing materials will not:• Degrade the image or status of persons of any ethnic or

religious group or affiliation.• Feature anyone who is or appears to be below the legal

age participating in gaming.• Contain claims or representations that gaming will

guarantee an individual’s social, financial or personalsuccess.

• Exhort gaming as a means of covering past financiallosses.

• Be placed in media where most of the audience isreasonably expected to be below the legal age toparticipate in gaming.

• Imply or suggest any illegal activity of any kind.• Be placed in media specifically oriented to children.• Be placed at any venue where most of the audience is

normally expected to be below the legal age toparticipate in gaming.

Commitment To The Public

Funding the NRGP• In terms of agreements reached at the SA Advisory

Council on Responsible Gambling (SARGT), CASAmembers will continue to provide funding for theNational Responsible Gambling Programme (NRGP)

• CASA members will use this research to identify thebest practices for casinos to follow in order to promoteresponsible gambling.

CASA Code of Conduct




Committed to making responsiblegambling an integral part of our dailyoperations at all our casinosthroughout South Africa.

Committed to making responsiblegambling an integral part of our dailyoperations at all our casinosthroughout South Africa.


NRGP Treatment Centres


SwakopmundLouis Trichardt

Tzaneen



Western CapeCape Town

TygerbergBellvilleGoodwoodParow/Vasco

HelderbergStrandSomerset West

OostenbergKuils River

Southern SuburbsKenilworthRondebosch

Cape FlatsMitchells Plain

Southern CapeGeorgeMossel Bay

OverbergCaledon

Breederivier ValleyWorcester

West CoastSaldanha

Free StateBethlehemBloemfonteinWelkom

Northern CapeKimberleyUpington

Eastern CapeButterworthEast LondonGrahamstownMthathaPort ElizabethQueenstown

LimpopoLouis Trichardt (Makhado)PolokwaneTzaneen

MpumalangaHazyviewNelspruitSecundaWitbank

North-WestKlerksdorpMafikengMmabathoRustenburg

KwaZulu-NatalDurbanEmpangeniGlenwoodNewcastlePhoenixPietermaritzburgRichards BaySouthportTongaat

GautengJohannesburgSowetoVanderbijlpark

North RandAuckland ParkBraamfonteinRandburgSandton

PretoriaHatfieldCenturion

East RandAlbertonBenoniBoksburgBrakpanGermistonKempton ParkSprings

West RandKrugersdorpRoodepoort

SwazilandManzini

LesothoMaseru

NamibiaSwakopmundWindhoek

Inpatient Treatment CentresBloemfonteinCape TownDurbanEast LondonJohannesburg

Network of Treatment Professionals



National Gambling Board of South AfricaBlock G Ground Floor Mapungubwe Building77 Meintjies StreetSunnyside Pretoria 0002

Private Bag X27Hatfield 0028

Tel: +27(0) 12 394 3800 Fax: +27 (0)12 394 0831 E-mail: [email protected] www.ngb.org.za

South African Regulators ForumSARF Secretariat:The DTI CampusMulayo Building (Block C)77 Meintjies StreetSunnyside Pretoria 0002

Tel: +27 (0) 12 394 3184Fax: +27 (0) 12 394 [email protected]

Eastern Cape Gambling and Betting BoardECGBB Building, Quenera ParkQuenera DriveBeacon Bay East London 5205

P.O. Box 15355Beacon Bay East London 5205


Free State Gambling and Racing Board190 Nelson Mandela DriveWestdeneBloemfontein 9301

PO Box 9229Bloemfontein 9300


Gauteng Gambling Board 1256 Heuwel AvenueCenturion 0157

Private Bag X125 Centurion 0046


KwaZulu-Natal Gambling BoardNatalia 330 Langalibalele StreetPietermaritzburg KwaZulu-Natal 3201

Private Bag X9102 Pietermaritzburg KwaZulu-Natal 3200

Tel: +27 (0) 33 345 2714 Fax: +27 (0) 33 342 7853 [email protected]

Regulatory Authorities in South Africa



Limpopo Gambling Board22 Schoeman StreetPolokwane 0699

Private Bag X9520Polokwane 0699


Mpumalanga Gambling BoardFirst AvenueWhite RiverMpumalanga Province 1240

Private Bag X9908White RiverMpumalanga Province 1240

Tel: +27 (0) 13 750 8000 Fax: +27 (0) 13 750 [email protected]

Northern Cape Gambling and Racing Board2 Harrison StreetDe BeersKimberley 8300

Private Bag X6108Kimberley 8301


North West Gambling BoardNo 23 First Street Industrial SitesMafikeng 2745

Private Bag X34 Mmabatho 2735

Tel: +27 (0) 18 381 5305 Fax: +27 (0) 18 381 4421 [email protected]

Western Cape Gambling and Racing BoardSeafare House68 Orange StreetGardensCape Town 8001

P.O. Box 8175Roggebaai 8012


SA Bureau of Standards1 Dr Lategan RoadGroenkloofPretoria 0002

Private Bag X191Pretoria 0001




South African Responsible Gambling Trust

Dr Vincent Maphai (Chairperson)Mr Chris Fismer (Vice-Chairperson)

Block G Ground FloorMapungubwe Building77 Meintjies StreetSunnysidePretoria 0002

Private Bag X27Hatfield 0028


National Responsible Gambling Programme / SARGF

Unit 1A Rosmead Centre67 Rosmead AvenueKenilworth Cape Town 7708

P.O. Box 16331Vlaeberg 8018


Responsible Gambling Structures


Derek Auret, Chief Executive

Casino Association of South Africa

Phone: +27 (0) 21 409 2460 Fax: +27 (0) 21 419 7271

Postal: PO Box 15685 Vlaeberg 8018

Email: [email protected]

the 2008 survey of casino entertainment · in 2008 the national gambling board (ngb) published its...

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