140945 Limpopo Gambling Board AR DRAFT 7

LIMPOPO GAMBLING BOARD Annual Financial Statements for the year ended 31 March 2022 Notes to the Annual Financial Statements

2022

2021

27. Contingencies (continued) As at the end of the financial year, no confirmation from the legal representative regarding the contingent liabilities/assets for the period under review was received. However, it is submitted that should Adv. Mantsho be successful with the civil claim, based on recent case law, the award against the entity would most probably not exceed R500 000. The entity may also be liable for the legal costs associated with the case, which was not estimated by the legal representative. REVOCATION OF LICENCE/ PORTAPA (PTY) REVIEW APPLICATION The Applicant’s bookmaker licence was revoked by the entity. The Applicant then took the matter on review whereafter the court referred the matter for trial. An interim order was awarded to the licensee to continue with operations pending the outcome of the trial. After a pre-trial conference, the matter will be set down for trial. As at the end of the financial year, no confirmation from the legal representative regarding the contingent liabilities/assets for the period under review was received. However, the entity’s legal representative previously stated that he considered the success of the action against the entity as being unlikely and that no financial liability will arise from the case save for the legal costs associated therewith. The entity’s legal representative estimated the legal costs for the work done thus far to be approximately R70 000-00. GOLDRUSH GAMING LATIANO/ GOLDRUSH BINGO The Applicant is challenging the award of a bingo licence. The entity’s legal representative considers the success of the action against the entity as being unlikely. The Applicant initially placed the matter on the roll but subsequently filed a notice of removal of the matter from the opposed motion roll of 4 December 2017. The main review has not been set down and there has been no movement in the matter since the above date. As at the end of the financial year, no confirmation from the legal representative (State Attorney) regarding the contingent liabilities/assets for the period under review was received. However, the entity’s legal representative previously stated that no financial liability will arise from the case save for the legal costs associated therewith. The entity’s legal representative was unable to estimate the legal costs for the case. SOUTH AFRICAN BOOKMAKERS ASSOCIATION AND 5 OTHERS/NATIONAL GAMBLING BOARD AND 9 OTHERS The entity is opposing an application made by the Bookmaker's Association of South Africa, who are seeking a declaratory order on whether the entity and other Provinces are allowed to receive bets placed on dog racing taking place in the United Kingdom. The entity does not expect any cash outflows in relation to the matter. The Applicant has not applied for a trial date and there has been no movement in the matter for period under review. As at the end of the financial year, no confirmation from the legal representative regarding the contingent liabilities/assets for the period under review was received. However, the entity’s legal representative previously stated that “These claims are not monetary in nature, thus there is no money claimed from the board. The only money which might be payable is the legal costs which I am unable to estimate, costs undergo taxation with the taxing master and depend on the work done and the how much Counsel charges as well.” TCBS TRADING 4 (PTY) LTD 43 LIMPOPO GAMBLING BOARD

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